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Economists (imperfectly) take this into account when calculating inflation. In cars, for example, economists estimate the price of individual features (e.g. a p
by elil17 5y ago
Economists (imperfectly) take this into account when calculating inflation. In cars, for example, economists estimate the price of individual features (e.g. a power steering wheel, ABS, a cup holder) so that they can accurately account for increases in quality.
- astrange 5y agoThose calculations are the ones that make it look like American factory workers were automated out of their jobs, because a 2010 computer is a zillion times faster than a 1970 computer, therefore each factory worker is now producing a zillion times as many computers. Basically, it works better a year at a time.
- giantg2 5y agoThe jobs were mostly shipped over seas. The ones that were left had to compete with the lower prices that were the product of third world cost of living/labor. Management took advantage of the fact that most of their workers don't understand/pay attention to inflation.
- astrange 5y agoLiz Warren and Andrew Yang both used these numbers to run campaigns about specifically automation taking away everyone’s jobs. I do think they know how outsourcing works, but the automation thing turned out to not be real.