libartsreader

Shelter, groceries, healthcare, and education comprise 53.2% of the CPI bundle.

US households faced much higher costs than you recall. According to the BLS, mean monthly expenditures were $44.75 on landline service, $13.50 on cable TV, and $12.33 on newspapers. That’s $70.33 in 1996 USD, or ~$193 in 2026 USD.

More households subscribe to services today, which inflates the "average expenditures" data cited below: 93% of 1988 households had a landline, 53% cable TV, and 63% newspaper. Compare with today's household services penetration: 98% mobile phone, 94% broadband, and 74% streaming media.

You’re right that this is less than the cost of internet + cell + streaming services today — these are ~50% higher than the 1988 bundle — but consider the differences: you can access almost any kind of content from almost anywhere. And you can consume it on a smart phone or TV that costs 75% less in real terms than that TV from 2000.

Meanwhile, real median household income grew from ~$65,130 in 1988 to $83,730 in 2024 — and furthermore, the tax burden on the middle class fell during this period.

Sources: https://www.bls.gov/cex/1988/Standard/cusize.pdf https://fred.stlouisfed.org/series/MEHOINUSA672N

The assertion that the CPI simultaneously overlooks downward product substitution and prices in product improvements in order to paint an overly-rosy picture is belied by the fact that most stuff is cheaper than it’s ever been.

Thirty years ago, internet service was $2.95/hour (in 1996 dollars!), long-distance phone calls were 10 cents/minute, and a low-res 28” color TV with 5 channels cost a fortune.

What start date would you prefer? https://fred.stlouisfed.org/series/LES1252881600Q

The CPI doesn’t arbitrarily “swap in” items. It changes based on consumer behavior. That’s why it now tracks streaming services but not VCRs. Similarly, if the price of Gala apples triples and everyone switches to Fuji, a fixed index would overstate the actual cost of living.

Insofar as gold impacts the cost of things people buy, it’s already included. Adding it directly to the CPI makes no more sense than adding Bitcoin or soybean futures.

The cost of housing is already is a massive component of the CPI.