One of the themes that has arisen in the recent Paul Krugman inspired debate on middle class living standards is the possibility that the consumer price index (CPI) misses improvements in the quality of various goods and services, and therefore overstates the true rate of inflation. This would then mean that "real" wages and income have risen more than official data show. I have spent far more time on this issue than I would have liked. In the mid-nineties there was an effort inspired by Alan Greenspan and spearheaded by the late Senator Daniel Patrick Moynihan to cut Social Security benefits based on this claim.
The Consumer Price Index and Living Standards
The American Prospect is fiercely independent and reader-funded. Your support directly funds our team of investigative reporters, fact-checkers, and editors who produce in-depth journalism that holds the powerful accountable.
If you believe in reporting that informs, challenges, and inspires, there are two key ways to support us:
• Donate to keep our nonprofit newsroom strong and fearless
• Subscribe to our award-winning print magazine and receive our hard-hitting reporting and analysis in your mailbox 6 times a year
Your support makes our journalism possible. Thank you for standing with us.
