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This tweet was poorly worded, I agree. What he should have said was that the increasing prices of new cars did not show up as inflation in the way economists ca
by o_nate 7y ago
This tweet was poorly worded, I agree. What he should have said was that the increasing prices of new cars did not show up as inflation in the way economists calculate it, because of the way they adjust for quality improvements. In the full article he explains this more clearly: https://news.ycombinator.com/item?id=22378595 https://news.ycombinator.com/item?id=22378595
- Will_Do 7y agoThe article is also very confusing. He alternates between considering the inflation rate and not considering the inflation rate. I still don't know if he is claiming that BLS is claiming that, for cars, the inflation rate is 0. I also find his COTI quite misleading. It seems he is counting 100% of health care expenses (100% of premiums) but not counting the ~70-80% of premiums an employer pays in median weekly earnings. In the college field, he also uses a semester if college tuition for some reason. Since this is a 1 time cost, it should almost surely be accounted for differently.