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The basket of goods they use to adjust for inflation does not usually include house prices, which have sky-rocketed in the last few decades.
by Gil-galad 7y ago
The basket of goods they use to adjust for inflation does not usually include house prices, which have sky-rocketed in the last few decades.
- eru 7y agoIn those kinds of debates about whether labour is more or less 'exploited' than they used to be, it's easiest to just ignore inflation: Look at the fraction of GDP that goes to labour, capital and land at any point in time. No need to adjust for inflation this way. Or viewed another way: you are adjusting for inflation, but your basket is the entire GDP, which you arbitrarily set to 1.