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This is the same in the US, yes. And it's still the correct thing to do. Inflation can't be a measure of every dimension of economic hardship at once. As the
by aetherson 6y ago
This is the same in the US, yes. And it's still the correct thing to do.
Inflation can't be a measure of every dimension of economic hardship at once. As the article points out, healthcare has risen in cost dramatically more than most other things. Does that mean that somehow the inflation rate must reflect the pains of those households not in the average and aggregate?
Less capable goods may no longer be available. You can no longer purchase a Model T, and must purchase a car that's faster, safer, more comfortable, and more reliable. Even if you don't particularly value that, your car objectively is faster, safer, more comfortable, and more reliable. The inflation rate can't change because your preferences are for a cheaper, but inferior good.
- peteradio 6y agoThe problem then is that "inflation" should not be used to argue that a large block of people aren't getting the shaft. That seems to be the most common exercise in citing inflation.
- beagle3 6y agoBut things are indexed to inflation assuming it represent the dynamics of “this is what you need to maintain your current quality of life”.
- rozab 6y agoWhat about improvements linked to mandatory regulations (safety, emissions, efficiency, etc)?
- deleted 6y ago[deleted]