4 ms·

I mean a good metric would be yearly expenditure over yearly earning maybe?

• refurb 4y ago
  It's a very similar problem as measuring inflation with a basket of goods. A "basket" doesn't stay the same. Is a new iPhone 7 in 2016 equal to a iPhone 14 in 2022? And things you'd expect to be easy to measure like food, aren't, because can you compare ground beef in 2000 with organic ground beef in 2020? Are they the same? Probably the easiest way is to measure some "average" expenditure on say housing and although it buys "less", call them equivalent. So a large 3-bedroom condo in San Francisco might be equivalent to say a single family home in Chicago.
  • dmz73 4y ago
    I think that if you have to ask questions like the iPhone equivalence then 1) you have inflation that is higher than officially reported and 2) inflation is not a problem for you or most of the people in your country.
    • refurb 4y ago
      I don't follow that in the least. These are important questions that economists try and answer through a careful study and discussion. What you're saying is: a) their method skews inflations numbers and b) inflation is not a problem because they measure it? I'm just confused.