CPI Index

Discussion of inflation, the CPI index and owners' equivalent rent.

Category:

Education

Tags:

• CPI
• inflation
• owner's
• equivalent
• rent
• deflation

[mathteacher1729]

Comment: I find the definition of "Disposable" in the phrase "Disposable income" to be interesting.

I would not consider the money one spends on food, housing, and travel to and from work to be at all disposable.

Question: As far labeling owner-occupied housing as an investment, isn't purchasing a house, car or even a college loan an investment in growing one's equity?

Point: Thank you for your simple explanations of subtle and sometimes complex ideas. I thoroughly enjoy your videos.

[khanacademy]

I agree that the name is a little misleading. Disposable income is everything you take home (after taxes) while Discretionary income is what you have left over after you pay for food, shelter, etc.

[khanacademy]

Owner-occupied housing can be an investment, but its primary purpose is shelter and to maintain a standard of living. The CPI is used to measure how much the cost of maintaining a certain standard of living changes over time so the cost of things like housing should be included (most people are buying homes to maintain their living standard; not renting them).

[teamtumbleweed]

these cpi reports done by the government are so biased and unfairly reported!

[charronfamilyconnect]

I wonder if we do this in Canada as well, to weight housing costs using the equivalent rent ratio as opposed to the actual mortgage payments and or asset prices of homes?

[charronfamilyconnect]

@khanacademy Your saying there isn't any correlation between monetary inflation & price inflation? Are you sure about that?If the currency(not money) is being expanded(through credit expansion for example) greater than the rate of production of goods/services in the overall economy,you will get price inflation, all other things being equal.You treating monetary inflation as separate from price inflaiton.Where does the extra currency go then?A black hole perhaps? You've got explaining to do.

[FortNikitaBullion]

@khanacademy I dislike these definitions further. There is no fixed amount you need to spend on food and shelter. Especially food, I literally see some people spend half their income on junk food and think there is nothing they can do for their finances because they have so little "discretionary income".

[1dducks]

CPI is BS, like most govt stats. True inflation is MUCH MUCH higher than what they report. They are trying to deny the fed printing press running non-stop by denying the true inflation numbers. They are even trying to use a new formula to calculate the CPI so they can pay less in adjusted social security payments, etc. Again the rich get richer and the poor and elderly suffer.

[Vikkhakh]

Hello sir,

I really think that you're channel is really very helpful. Can you post a video on future stocks prices and prices of precious metals compared to dollar. Most websites exaggerate too much you're views are always as neutral person.

[soutwin]

@SuperBlahmaster as the price of oil goes up it consumes moe of one

s budget ...displacing something else perhaps food