Cartoon explaining weighted CPI

[shaayecanaan]

49. It is an illustration...

obviously, CPI is not calculated on an individual basis. The three-hairs guy is representative of the nation, in that respect.

I had in mind Adbusters' ballad of Joe and Mary:-

Joe and Mary own a small farm. They are self-reliant, growing as much of their food as possible, and providing for most of their own needs. Their two children chip in and the family has a rich home life. Their family contributes to the health of their community and the nation … but they are not good for the nation’s business because they consume so little.

Joe and Mary can’t make ends meet, so Joe finds a job in the city. He borrows $13,000 to buy a Toyota and drives 50 miles to work every day. The $13,000 and his yearly gas bill are added to the nation’s Gross National Product (GNP).

Then Mary divorces Joe because she can’t handle his bad city moods anymore. The $11,000 lawyer’s fee for dividing up the farm and assets is added to the nation’s GNP. The people who buy the farm develop it into townhouses at $200,000 a pop. This results in a spectacular jump in the GNP.

A year later Joe and Mary accidentally meet in a pub and decide to give it another go. They give up their city apartments, sell one of their cars and renovate a barn in the back of Mary’s father’s farm. They live frugally; watch their pennies and grow together as a family again. Guess what? The nation’s GNP registers a fall and the economists tell us we are worse off.