Editing CPI (section)

== Technical Criticisms: [[Gauge Theory]] and [[The Index Number Problem: A Differential Geometric Approach|The Index Number Problem]] ==

Weinstein's arguments are deeply technical, rooted in his application of gauge theory to economics. He contends that economists fail to grasp the mathematical foundations of their own indices. In a [https://x.com/EricRWeinstein/status/1392546864537374720 May 12, 2021, thread], he claims price and quantity indices like CPI are misunderstood, referencing historical figures such as Ragnar Frisch and Irving Fisher. He criticizes "chaining" methods for ordinal preferences, arguing they introduce arbitrary discretion that allows for faking higher growth and lower inflation.

Weinstein advocates for viewing CPI through a differential geometric lens, as outlined in his work on "[[The Index Number Problem: A Differential Geometric Approach]]." In an [https://x.com/EricRWeinstein/status/1448707335023579146 October 14, 2021], post, he recommends key terms like "Konus index," "superlative index," "Divisia Index," "cycling problem," "mechanical index number," "COLA," and "chain index" for those seeking deeper understanding. These concepts reveal, he argues, that CPI construction is riddled with errors and discretion, extending to measurements of money supply via Divisia Monetary Aggregates.

The moral of his critiques, as stated in the May 12, 2021, thread, is that those controlling CPI and GDP indices can manipulate outcomes by halting methodological debates. This suppression, he alleges in [https://x.com/EricRWeinstein/status/1165765220561588224 August 25, 2019], and [https://x.com/EricRWeinstein/status/1207349180563255296 December 18, 2019], posts, stems from Harvard economists' efforts to protect wealth transfers, labeling economics as an "imperialist" discipline that borrows from physics without credit.