In a message dated 12/2/03 11:48:08 AM, [EMAIL PROTECTED] writes:

>If you measure wages in desk calculators instead of dollars, I'm sure
>they've gone up substantially!  ;-)
>
>
>--Robert


Yes, the BLS series uses CPI-u to deflate the nominal wage series. Since
CPI-u doesn't account for changes in the quality of goods or the market basket,
and overstates inflation more the higher the actual rate of inflation, for the
inflationary period from roughly 1968-1983 the BLS series understates real
wages.  Using a better deflator, CPI-x, which accounts for changes in the market
basket (though perhaps not for changes in quality) discloses that real wages
have indeed risen quite a bit since 1964.

If we measure the rise in real wages in terms of desktop computers, would the
increase by asymptotic to infinity?  ;-)

David Levenstam

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