The Consumer Price Index (CPI) is what most salaries, pensions, Social Security payments and other transfer payment increases are tied to. For a couple hundred years, it accurately measured the yearly cost of living increase.
However in 1983, Washington started manipulating the calculation lower in order to reduce the amount of increases the Unites States government was required to distribute ever year. Unfortunately, there have been a slew of negative unattended consequences rippling through the U.S. and global economies as a direct or indirect result of incorrectly measuring CPI.
Recognizing these damaging trends, we created the Chapwood index to help bring clarity and understanding to a problem that is the number one reason why people are losing real purchasing power and perhaps a major contributor to the growing income gap here in the U.S.
As we researched further, we discovered that this intentional manipulation by the government of the CPI is perhaps the single greatest reason why people are becoming increasingly reliant on government entitlement programs. Find out why.
What differentiates the Chapwood Index from the CPI is very simple but very important. The Chapwood Index is calculated by simply surveying average Americans for the top, real items they spend their after-tax money on. We had hundreds of people send us a list of what they purchased or used throughout the course of their normal lives. We then took the top 500 that occurred most frequently and tracked the price appreciation or depreciation semi-annually.
No gimmicks, alterations or seasonal adjustments; just real prices.