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But CPI is known to overstate inflation. The reason people think inflation is more than it is is simple - we've been trained from birth to notice prices going u
by ArkyBeagle 10y ago
But CPI is known to overstate inflation. The reason people think inflation is more than it is is simple - we've been trained from birth to notice prices going up, but not prices going down.
- Retric 10y agoIn computer processing terms: https://en.wikipedia.org/wiki/Amdahl%27s_law https://en.wikipedia.org/wiki/Amdahl%27s_law If you need to by X, Y, and Z and Z get's cheaper it can only save you so much money. Price increases on the other hand are unbound.
- ArkyBeagle 10y agoPrice increases are bounded by substitution of goods and "what the traffic will bear." The things - real estate, education, health care - that are inflating most rapidly are doing that because they are subsidized. When you subsidize a thing, it costs more and you get more of it Ag subsidies are different because that's a sort of Nash equilibrium - the cost of inventory underruns exceeds the mild price increase from overproducing agricultural products.
- deleted 10y ago[deleted]