[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  William Stickevers [@wstickevers](/creator/twitter/wstickevers) on x 7778 followers Created: 2025-07-27 19:11:51 UTC The CPI Illusion: How the BLS Misrepresents Economic Reality The Bureau of Labor Statistics (BLS) officially claims to use a “cost of living” (COL) framework in its calculation of the Consumer Price Index (CPI)—a metric that governs trillions of dollars in government transfers and policy decisions. However, this claim is misleading. A genuine cost-of-living index would require the incorporation of consumer preference data, along with a robust methodology for aggregating those preferences or constructing representative consumer profiles. Instead, the BLS relies on a modified Laspeyres-type index (more accurately, a Lowe’s index), which is fundamentally mechanical in nature. To lend an air of sophistication, the BLS sprinkles in references to “superlative indexes,” drawing superficially from the theoretical work of Erwin Diewert. But these superlative indexes are grounded in highly unrealistic assumptions—most notably, homothetic preferences, which do not reflect actual consumer behavior in the real world. This sleight of hand allows the BLS to maintain the illusion that it has adopted impartial, economically rigorous indices. In reality, it continues to compute rigid, mechanistic indexes that are highly susceptible to discretionary choices by the very officials claiming neutrality—choices that have massive financial implications over time. XXXXX engagements  **Related Topics** [consumer price](/topic/consumer-price) [col](/topic/col) [illusion](/topic/illusion) [inflation](/topic/inflation) [Post Link](https://x.com/wstickevers/status/1949548303781347390)
[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]
William Stickevers @wstickevers on x 7778 followers
Created: 2025-07-27 19:11:51 UTC
The CPI Illusion: How the BLS Misrepresents Economic Reality
The Bureau of Labor Statistics (BLS) officially claims to use a “cost of living” (COL) framework in its calculation of the Consumer Price Index (CPI)—a metric that governs trillions of dollars in government transfers and policy decisions. However, this claim is misleading.
A genuine cost-of-living index would require the incorporation of consumer preference data, along with a robust methodology for aggregating those preferences or constructing representative consumer profiles. Instead, the BLS relies on a modified Laspeyres-type index (more accurately, a Lowe’s index), which is fundamentally mechanical in nature.
To lend an air of sophistication, the BLS sprinkles in references to “superlative indexes,” drawing superficially from the theoretical work of Erwin Diewert. But these superlative indexes are grounded in highly unrealistic assumptions—most notably, homothetic preferences, which do not reflect actual consumer behavior in the real world.
This sleight of hand allows the BLS to maintain the illusion that it has adopted impartial, economically rigorous indices. In reality, it continues to compute rigid, mechanistic indexes that are highly susceptible to discretionary choices by the very officials claiming neutrality—choices that have massive financial implications over time.
XXXXX engagements
Related Topics consumer price col illusion inflation