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This is a fundamental problem with inflation calculation. How much would an iPhone be worth in the 1800's? How much would the Federal government have paid for a
by dahfizz 6y ago
This is a fundamental problem with inflation calculation. How much would an iPhone be worth in the 1800's? How much would the Federal government have paid for a gigabit internet connection 100 years ago? Considering they spent tens of millions of dollars developing the Arpanet, I would say that the cost of internet has fallen dramatically.
Inflation calculations are only meaningful over short time periods. When chained over decades and centuries, we may as well be comparing two foreign currencies and societies.
- darrenf 6y agoAIUI, economists measure inflation by comparing prices of a "basket of goods" – the contents of which change over time, specifically to reflect changes in consumer habits, technological progress, and other non-monetary factors. If we can trust or agree that the basket is updated frequently enough with sufficient accuracy at a broad scope, then inflation should indeed be comparable over decades. Here's how the UK defines its basket of goods, and the rules for changing it: https://www.ons.gov.uk/economy/inflationandpriceindices/articles/ukconsumerpriceinflationbasketofgoodsandservices/2020 https://www.ons.gov.uk/economy/inflationandpriceindices/arti...