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You actually hit on a great example of why inflation numbers are flawed. The product you are comparing is "top of the line smartphones". However, the 2022 ver
by slg 5y ago
You actually hit on a great example of why inflation numbers are flawed. The product you are comparing is "top of the line smartphones". However, the 2022 version of that product is barely even comparable to the 2012 version. The phone, the computer, the car, the house, or the medical care that you purchase today is greatly improved compared to the same item you would have purchased in the past. That improvement is ignored in inflation calculations.
- chii 5y agoIt's not ignored. There's an adjustment called the hedonic adjustment for this very purpose. However, I personally don't really agree with it.
- slg 5y agoPhone are the only item I listed that receive a hedonic adjustment and you can't exactly quantify the difference in quality between an iPhone 12 and a Motorola StarTAC. They are a fundamentally different products.