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I am not sure if I follow your logic about quality of products and what that has to do with inflation.
by systemvoltage 6y ago
I am not sure if I follow your logic about quality of products and what that has to do with inflation.
- voisin 6y agoImagine if it costs $2.00 for a 200g Kit Kat bar and ten years later it still costs $2.00 for a Kit Kat bar but they’ve shrunk the size to 160g. Size is an attribute and companies are working feverishly to alter attributes while staying as close to a price point as possible (consumers are much more focused on objective price point than subjective attributes and largely ignore objective measures like grams in a chocolate bar). There is massive inflation, just not in first order pricing but rather in second order pricing-to-[insert attribute] ratio. I think even casually observing your purchases over time will yield a conclusion that you are spending approximately the same for “less” in most (but not all) areas of your life.
- jklinger410 6y agoIf I buy a burger in the US for a dollar, but it's half cardboard, and I buy a burger in the EU for $1.50 but it's a quality cut of meat, you might say that the true value of the burger in the US is maybe $.10 but the true value of the burger in EU is $1. But if I wanted to buy that EU burger in the US, I would have to pay $15. So the dollar burger is an illusion. The burger is actually $15, and is hyper inflated all along.