3 ms·
I have some fairly big gripes with the way inflation adjustion is calculated. Mainly: I don't think it properly covers the difference between discretionary vs
by Turskarama 3y ago
I have some fairly big gripes with the way inflation adjustion is calculated. Mainly: I don't think it properly covers the difference between discretionary vs non discretionary spending across different income levels.
Ultimately, if you're poor, the only weightings that _actually_ affect you are (in order) food, housing, transportation, and energy. Everything else including healthcare ultimately doesn't become part of the equation, because you can't afford it.
It doesn't matter if cars are cheaper if you can't afford to buy one anyway, it doesn't matter if drugs are cheaper if you can't afford your prescription anyway, and it doesn't matter if restaurants are cheaper if you can't afford to eat out anyway.
Pretending like the price of consumer electronics (which can be a big one off spend, but amortised over the several years they last are fairly small) or plane trips matters at all to the spending power of poor people is laughable.
- cudgy 3y agoI’d argue housing should be first in that list, since it represents almost 50-70% of a poor persons gross income. Food is critical of course, but beans and rice with occasional road kill are cheap and can sustain someone nutritionally.