3 ms·
wrong, it's a shitty metric. consumers care about inflation bc it represe ts their quality of life getting more expensive. trimming is the equivalent of saying
by collegeburner 4y ago
wrong, it's a shitty metric. consumers care about inflation bc it represe ts their quality of life getting more expensive. trimming is the equivalent of saying "lol just downgrade" which is not a good answer.
you can't watch people switch their crab and milk for krab and powdered milk then be like "oh we'll just trim that out of inflation lmao". inflation is not supposed to measure change in average cost of necessities, it's supposed to measure change in a basket of basic goods.
- ghaff 4y agoAnd that basket naturally shifts over time as certain goods which have reasonable substitutes rise sharply in price, as technology changes, as tastes change, etc. It would obviously be silly to compare against the same basket of goods as was used in 1970.
- s1artibartfast 4y agoThere is some truth to it if you want to think about purchasing power and quality of life. A TV today is not the same as a TV in 1970. The groceries a family buys today are not the same Goods or quality as someone would have bought in 1920
- anotheracctfo 4y agoIts supposed to measure the effects of inflation on the wealthy, which is why substitutes are important, because it impacts their grocery stocks. You can starve.