1-4 Stagnant wages - Book Report/Review Example

Response to the Post Economists have developed or created the Consumer Price Index (CPI) and The ProducerPrice Indexes (PPI) to measure inflation over the period. Prof. Don Boudreaux uses the CPI to support his argument that the wages have not been adjusted for inflation. The response to Prof. Boudreaux argument is valid, for it indicates that various multiple indexes for measuring inflation can be manipulated in determining whether wages have been adjusted or not over time. From the YouTube clip, Prof.

Boudreaux has clearly manipulated the indexes in favour of his skewed argument. His decision to use the consumer price index (CPI) supports his manipulative nature as the index shows that workers wages have not been significantly adjusted to inflation in the last 30 years (Learn Liberty 1). When The Producer Price Indexes (PPI) is used to determine the same, the average hour wage for workers have risen significantly by 18% in the same period. Wage adjustment with inflation can, therefore, be argued to have taken place or not depending on the agenda at hand, though several indicators such as retirement benefits, health insurances and sick pay have improved with time.

The user also indicates that measures such as improvement in goods quality can not be used to indicate their improvement over time. I find this view twisted since improvement of goods is benched on technological advancements in their manufacture. For example, advancements in computer technology are measured in terms of increase in their processing power and hence improvement in a good indicates how much it has improved over time (Learn Liberty 1).Work CitedLearn Liberty. "The Real "Truth about the Economy:" Have Wages Stagnated?

" Online video clip. YouTube. YouTube, 31 Jan. 2012. Mon. 12 Sept. 2014.