Basket Of Goods

  

A fixed set of everyday consumer goods or services which are heavily relied upon by the public and can be predictably purchased year-over-year, such as clothes, food stuffs, gasoline, water, utility services, S&M equipment, etc.

The Basket of Goods is utilized to calculate the Consumer Price Index, and is periodically modified to reflect real-time consumer purchase habits. Basically the Bureau of labor Statistics will take the cost data of the items in the basket and compare it to the previous year, resulting in the Consumer Price Index (CPI).

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Finance: What is a Pension?31 Views

00:00

finance a la shmoop. what is a pension? well it rhymes with tension, and likely

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for good reason. if you're a teachers pension or a fireman's pension or [person wearing dark glasses writes something down]

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another state employees pension that's backed up by a state that's going

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bankrupt. Hi, California, Hi Illinois. well we're looking at you. all right people

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well a pension is another term for a retirement fund. but what's special about

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a pension is that the employer essentially forces you to put away money

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for your retirement and then they invested for you.

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how nice. or at least be sure you invest it well on a salary of 75 grand a state [gambling table shown]

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employed ditch-digger might get a contribution of say 10 grand a year into

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her pension, and that's each year 10 grand of forced savings for as long as

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she you know digs ditches for the state. and in some states where the unions are

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strong in the governing financial knowledge is weak the government

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guarantees a minimum financial return on the pension investment made on behalf of

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the employees. that is in California for example the state guarantees a 10% per

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year return on their invested pension savings. if the invested return like [equation]

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investing it in Wall Street and stocks and bonds and private equity funds and

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all that stuff well if that invested return is less than that number less

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than that 10%, then the state rights to the pinch and a check to cover the

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incremental difference. yeah it's a huge Delta and it's well pretty much why you

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a Californian Illinois you're going bankrupt remember. Jesus Saves

01:31

but Moses invests. [ Moses, holding stone tablets glares and demands interest]

01:35

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