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Show Pane 12 A, Lakeside Review, October 16, 1980 Says Study Group Political Course Price Index 'Overestimated' Does the Consumer Price Index present a true measure of inflation and the cost of living? Probably not, concludes Utah Foundation, the private research group, in a study of this popular index and its effect on governmental expenditures. The report points out that the Consumer Price Index (CPI) which is prepared each month by the U.S. Bureau of Labor Statristics, represents price changes for a fixed market basket of goods and services. As such, it fails to reflect changing buying habits of American families and tends to overstate housing costs during periods of rising interest rates. When prices rise on some items, other products will be substituted by many famines, according to the Foundation. For example, if the price of beef climbs in relation to other meat products, consumers will tend to buy more of these other items such as prok and chicken. Such substitutions are not reflected in the Consumer Price Index. Similarly, it is argued that the inclusion of current house prices and contracted interest costs in the home ownership component of the Consumer Price Index are costs most people do not bear. Moreover, the purchase of a house represents the purchase of a capital asset and is not necessarily a consumable expense. Other problems, which hinder the use of the Coni g sumer Price Index as a indicator, according to the Foundation are as follows: 1. The Consumer Price Index does not take into consideration changes in social security and income taxes. Taxes represent a substantial portion of the average family budget. 2. New products affect buying patterns and the cost of living. Technology results in the development of new items that replace old ones. Such changes are not reflected in the Consumer Price Index. 3. The Consumer Price Index is based on the spending habits of a selected group of surveyed consumers during a particular base period. It may not be representative of the spending patterns of any group at the present time. 4. Since the index is based on a composite, it does Offered Yoters want who dearn how to judge to can- parties, and Issues better, as well as see through campaign didates, are invited to Thetoric, take a course goffered at Weber State College Oct. 20, 27 and Nov. three-da- y 3. to Guide Voters be will .Campaigning p.m. all taught from three nights in Room 323 'of the WSC Union I 7-- Building. Rod 9 Julander , associate professor of political science and course instructor, said the four main topics to be include: in Tdiscussed Differences Democrats and Republicans and . cost-of-livin- How to Republicans, Get Past the Smoke and into Reality, Ethics, and The Future of Politics and Government. Prof. Julander said even both though ! Democrats not apply to all types of consumers. For example, the index includes both rent and home ownership costs, but few consumers buy and rent at the same time. The study observes that the Consumer Price Index (CPI) increasingly has been used to index governmental expenditures, such as salaries, retirement benefits, social security payments, etc., so as to compensate for the reduced purchasing power resulting from inflation. At the present time, more than 30 percent of all Federal outlays are tied to the Consumer Price Index or some component thereof. the hug jniddle of the road, there are differences which affect the kind of government each has to The index also is affecting the growth of state and local expenditures. Utah law provides that the personnel director shall recommend to the governor, adjustments to the pay plan to reflect changes in the cost of living. These recommendations are to be based on changes in the Consumer Price Index. Even when it is not prescribed by law, the Consumer Price Index exercises tremendous influence in legislative decisions and negotiations involving public and school employees. In addition, many labor contracts in the private sector are tied to the Consumer Price Index. Last year about 11 million workers in the U.S. had a clause in their labor contracts. Another 35 million persons receiving government pensions, social security, welfare benefits, etc., were affected by this widely used and frequently quoted index. cost-of-livi- Foundation analysts point out that all taxpayers are influenced by the Consumer Price Index, whether their own income is indexed or not, because of the official dependence of this index as the major measure of costs and inflation. They conclude that the use of the Consumer Price Index can lead to even greater inflation by allowing income to outstep producitivity and assuring continued high prices. For Best Results .. . Use The Classifieds! ;offer. These differences seem to be shifting at the present time, he said. Prof. Julander said the class will help people be more intelligent voters and better understand the 'ways in which candidates Influence them. He said it will help those who participate do a better job of evaluating the moral standards of public officials in order to .get the best government j SPARROW'S VENTRILOQUIST DENISE JENNINGS and her buddy" Randy wait patiently to perform for a at the Layton Golf and Republican Denise the former Miss. Club Country Saturday. is now attending the Layton title holder fund-rais- University of Utah and is seeking a degree in communications. Denise and Randy performed for judges in the Miss Layton contest as part of the talent section of the contest. er HAS LOW Cjp0vrjji:Hnnn a jti Sunset City Council Will Hear Reports, Discuss Sign Ordinance possible. professor said he will also discuss whether br not special interest influence on government can be controlled and what the future trends be in elec.could tioneering. Cost for the class is' $25. Tt is to be taken on a noncredit basis. - For more information br to register, call the .Weber State Division of Continuing Education at ; - The SUNSET The purchase of a new snow plow, consideration of a change in the city sign ordinance, and weed control, and reports on police and fire activity, city beautification and city finances are on the agenda for the regular meeting of the Sunset City Council Thursday at 6 p.m. Fire Chief Arnold Satterlee and Councilman Gay ton Peterson will present a report on fire activity and prevention programs in the city and Police Chief Daryl Conger will report on police activity for the PLUS! arr VbCsJAl Mayor Norm Sant'will present information on the city beautification committees work. The meeting is held in Sunset City Hall and residents and other interested persons may attend Roy Cancels Meeting ijiiiwfM ' hmpu ' ROY The regular meeting of the Roy City Council scheduled for Tuesday has been canceled. A notice distributed by Laurel M. Smith, assistant recorder, says the next meeting of the council will be held Nov. 4. No reason was given for the cancellation. past year. A proposed sign ordinance :hange which would limit the size and type of new signs in the community will be discussed by the council. Peterson will present information on the proposed change. The city imposed a moratorium on the installation of new signs in the city several weeks ago while the proposal was being studied. The council agreed in imposing the moratorium that residents are opposed to any increase of very large signs in the city. Councilman Eugene Kidd will present information concerning the possible purchase of a snow plow and street sweeper broom for the city, and Councilman Canal Bruce Watkins will give a financial report to the ! The Davis-WebCompany shut off water council. REFRIGERATOR ONLY$ ""'plMllltllllfl Reversible Textured Doors shelves. Large Crisper, Fresh Storage and Meat Pans Rollers Adjustable Glide-OInsuhation Foamed Chilled Meat Keeper Shut Off with horticulturists to determine if further watering is necessary for their particular types of plants. -- -- I- - Wayne Exclusive lid WhtteVWstinghouse Weigh-to-Sa- FALL SALE Chain Link Fence gz?sooa Buy Now Before Spring Price Increase . PLUS. ve Heavy Duty Agitator water saver Five water temperatures Three speed combinations Permanent Press and knit settings Factory Five-positi- on Cedi Refund cycle ak Bleach Dispenser Lack 'n Spin Safety lid WhiteWestinghouse As Low As Kimber, director of the canal company, said water was Iturned out of the canals Wednesday for the winter, ending the Irrigation season. Some residents may need to do further watering of their trees jand other plants before Trost, Kimber said. I would recommend that Ithey check with a horticulturist about watering with culinary water." I Several communities in Weber and Davis counties Teceive irrigation water from the canal company. refund ONLY WASHER er Risers are urged to check Cedi ut - service for the year Wednesday and water Ffcctcry Cantilevered adjustable 626-660- 0. Water PLUS. Completely Frost-Fre- e Energy Saver Switch Self-cleani- RANGE Per Ft. -- COMPLETELY PLUS INSTALLED No Turn Coll For Your system Free Estimate Corox units Two 766-216- 1 G TO WE ALSO CATER ROYLANCE FENCE CO. 100 No. Main, Layton, Ut. Alt MATERIAL 1 PEQfESSKXAl INSTALLATION Weve increased our number of mobile unit stops to make recycling with Reynolds more convenient. And our mobile recycling unit will be in your area as listed below. So start collecting aluminum cans right away. Then cash them in at our nearby mobile recycling unit, and until further notice, get our regular rate plus a cash bonus. Also, well pay you the same attractive price per pound for certain other items if theyre clean and properly prepared. Ask for details. Reynolds Aluminum Mobile Recycling Unit..lt makes cashing in your aluminum as quick and easy as collecting. Save up to $40 Save $30 on a 20 Toro snowthrower with recoil or electric start. Buy a 14 Toro snowthrower and save $20. Or save $10 on the all electric 12" model. Sale ends Nov. 15, or while supplies last. Emnlyon loaf enough?- Factory Cedi tow 8" Plug-OHigh Speed surface ut Infinite Heat Controls flsfistd UAJf jJ WhiteWestinghouse GIANT 21 Cu. Ft. FREEZER Efficient foam-in-pla- insulation. Magnetic door gasket. Four fast freezing shelves. Be Ready For the Hunt! ONLY FU210 Offer Expires 10-18-8- 0, "We'll Feather Your Nest for lessl" REYNOLDS ALUMINUM MOBILE RECYCLING UNIT AT ALBERTSONS SUPERMARKET 269 E 200 S. 2:30 P.M. - 4:00 P.M. EVERY TUESDAY - STAN RACKER'S WESTERN AUTO 1 825-601- 1 129 So. State., Cleafiald, Ut. 1 Tel. Conpantiq dieters reauler pftc end prrwaottenel ogling 6" Full-wid- th Here's where we are: ffiisd done wilkocU Toro . Speed-bro- il Oven and Surface unit signal lights storage drawer Reynolds pays the regular rate of 23$ a pound, plus a 4$ a pound bonus at your nearby Reynolds Aluminum Mobile Recycling Unit. THE INCLUDES ONLY ng pnc. .1 J SAVE THIS TOLL FREE NUMBER. pn kynatdt Aluminum fcyltng Pays rrQrbi fi-BO- O- 228-252- 5 crb; Call anytime 5418$. IfCOWtst, Ph. 825-429- 2 Across from McDonald's in ROY OPEN DAILY 10 a.m.6 p.m. Except Friday Open till 800 |