I think that GDP (and therefore inflation) don't actually measure what they used to. You can measure the number of cars being produced and houses built. It doe

I think that GDP (and therefore inflation) don't actually measure what they used to. You can measure the number of cars being produced and houses built. It doesn't really matter how you quantity value the value of a 1999 vw golf relative to the 2019 model. Once iphones, Google, Spotify & such get thrown into the mix... GDP just doesn't tell us much about how economic output has changed over the last 20 years. For the average person, I think we need to think in different terms. Housing, education, transport, consumables and manufactured goods & services. Generally I feel the trend (in Europe, at least) has been to big gains in the latter categories and stagnation/negative growth in the former. Housing affordability has gotten worse. Transport has gotten more expensive. Education has gotten more expensive (both for students and in total) and is "worse" in terms of leading to predictable career/income outcomes... a key decision-driver of education choices. Meanwhile consumables (food, washing detergent) have gotten cheaper. Manufactured goods (furniture/iphones) have gotten way better/cheaper. Services are a mixed bag (financial services dragging the whole category down). These categories are generally not fungible. No reductions in the price of food or iPhones (not even free) will help make housing more affordable. GDP... I'm not sure what it really measures anymore. It's become totally abstract. Meaningful within models but not indicative of anything about the world. I think it had meaning 40 years ago, but the etherealization of the economy ate it. All that said... Uniquely low GDP growth relative to high S&P returns. Picketty is probably going nuts.. in soft spoken French.