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I think this has a lot to do with the under counting of inflation. If you go back to 80s methodology inflation has been much larger that what they've let on.
by soperj 3y ago
I think this has a lot to do with the under counting of inflation. If you go back to 80s methodology inflation has been much larger that what they've let on.
- cheriot 3y agoWasn't the methodology change on housing costs? If this is under counting inflation then spending at restaurants is up even more. I guess people have money to spend and are enjoying the restaurant scene.
- azmodeus 3y agoWhat's the 80s methodology inflation?
- NickC25 3y agoI am not familiar with the methodology of reporting inflation used in the 80s - did they take a wider basket of goods, or were there other consumer purchases in question that would affect the reporting number? If we were to use the 80s methodology - what would inflation numbers look like?
- torial 3y agoShadow Stats has a chart showing the differences between both 80s and 90s methodologies and current: https://www.shadowstats.com/alternate_data/inflation-charts https://www.shadowstats.com/alternate_data/inflation-charts
- cheriot 3y agoShadow Stats is tin foil hat style economics. Price level measurement is complex and there are worthwhile debates, but this is not that.
- itsoktocry 3y ago>Shadow Stats Look at that first chart. He literally just adds a constant to the CPI data.
- swatcoder 3y agoYup. I think there's also an ongoing century long shift in "modern" culture that makes classical economics food "baskets" unrepresentative. Excepting wellness geeks, nobody who participates in "modern" culture lives on classical staples of grains, produce, dairy, and affordable cuts of meat. As a hardline economist in academia, you can say that those are what matter to poverty or starvation because people will eventually become desperate enough to reject their lived culture and return to an alien world of basic foods, but policy makers need to be realistic and acknowledge that most people have no idea how to eat without branded processed foods, fast food convenience, etc. The cultural traditions that made simple foods practical have been lost from many families and those never-learned recipes and habits don't just restore themselves to people overnight when times get tough. That inconvenient reality of what people actually eat needs to get folded into these economic models for them to actually report on what they intend to. Otherwise, the measures just speaking to a lost time and the smattering of rustic immigrants who still know how to live satisfyingly on traditional staples.
- soperj 3y ago> The cultural traditions that made simple foods practical have been lost from many families and those never-learned recipes and habits don't just restore themselves to people overnight when times get tough. That strikes a chord. How do you fix this piece though?
- tayo42 3y agoIt's easier then ever to learn to cook. Go on YouTube
- soperj 3y agoWhat are you having for dinner tonight?
- HappMacDonald 3y agoYoutube
- strikelaserclaw 3y agoThey should use the dollar menu at mc donalds to track food price inflation.
- lastofthemojito 3y agoThere is already a Big Mac Index: https://en.wikipedia.org/wiki/Big_Mac_Index https://en.wikipedia.org/wiki/Big_Mac_Index
- deleted 3y ago[deleted]
- babyshake 3y agoI no longer do a double take at a sandwich costing $25 at takeout restaurants in the area where I live. 10 years ago, I would have been surprised to see a sandwich cost $15 at anywhere but an upscale restaurant.
- lotsofpulp 3y agoI assume if a meal does not cost $15, then shortcuts are being taken that will make me not want to eat it.
- itsoktocry 3y ago>If you go back to 80s methodology inflation has been much larger that what they've let on. Is the 80s methodology more accurate or realistic? That's all that matters.