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“Equivalent to” Assuming prices for this type of device rise at the same rate as CPI. In practice, the inflation rate for most sectors is very different to th

“Equivalent to” Assuming prices for this type of device rise at the same rate as CPI. In practice, the inflation rate for most sectors is very different to the CPI average, so these “adjusted for inflation” numbers are pretty meaningless.

handsclean 2y ago
Normalizing to CPI gives you a decent comparison of cost, normalizing to industry gives you a decent comparison of competitiveness. CPI is the correct choice, industry-normalized would fail to show changes like the whole industry jacking up prices.
fnord123 2y ago
They don't sell gen 1 RPIs anymore so you can't track the price inflation for that product.
- pmyteh 2y ago
  You can still buy them (though for non-industrial use is not clear why you wouldn't buy a cheaper Zero or a 2/3 for similar money). The Pi 1 A+ is currently ~£20 including taxes: https://www.rapidonline.com/raspberry-pi-model-a-75-1131?src=raspberrypi https://www.rapidonline.com/raspberry-pi-model-a-75-1131?src...
ranguna 2y ago
"pretty meaningless" is a strong take.
- authorfly 2y ago
  Well for consumer goods what could be more "meaningful" is comparison to Disposable Income. I know it could be seen as a bit too socialist for the scientist to look at this over inflation, but if we are looking at how people value the meaning of the cost of fiat currency, it's clearly related to the people themselves. Disposable Income (inflation-adjusted or proportionate to whole income) tends to go up and down with a different pattern to inflation (or housing which makes up most of inflation most of the time) but represents more the difference in cost to you for a consumer good (especially elastic ones). The picture is much less rosy but represents the median person this way, not tech workers.
Suppafly 2y ago
>In practice, the inflation rate for most sectors is very different to the CPI average, so these “adjusted for inflation” numbers are pretty meaningless. That's a good point that people often ignore. It's especially relevant when talking about technology, where pricing tends to fall, not rise. Pi feel like they should cost like $20 now considering they make them at way higher numbers than in the past and that the technology isn't anything particularly unique.
- fulafel 2y ago
  Some things go up in price as features and mass market appeal go up. For example iPhone. You do have the launch Pi feature set available in the Pi Zero which is much less than 20 USD.
  - Suppafly 2y ago
    iPhone is, in some senses, a luxury good but they at least try to make the new versions have some features that justify wanting to buy a new one vs keeping your existing one. I guess no one needs a Pi either though, so maybe it is a better comparison than I initially thought.

handsclean 2y ago

Normalizing to CPI gives you a decent comparison of cost, normalizing to industry gives you a decent comparison of competitiveness. CPI is the correct choice, industry-normalized would fail to show changes like the whole industry jacking up prices.

fnord123 2y ago

They don't sell gen 1 RPIs anymore so you can't track the price inflation for that product.

pmyteh 2y ago
You can still buy them (though for non-industrial use is not clear why you wouldn't buy a cheaper Zero or a 2/3 for similar money). The Pi 1 A+ is currently ~£20 including taxes: https://www.rapidonline.com/raspberry-pi-model-a-75-1131?src=raspberrypi https://www.rapidonline.com/raspberry-pi-model-a-75-1131?src...

ranguna 2y ago

"pretty meaningless" is a strong take.

authorfly 2y ago
Well for consumer goods what could be more "meaningful" is comparison to Disposable Income. I know it could be seen as a bit too socialist for the scientist to look at this over inflation, but if we are looking at how people value the meaning of the cost of fiat currency, it's clearly related to the people themselves. Disposable Income (inflation-adjusted or proportionate to whole income) tends to go up and down with a different pattern to inflation (or housing which makes up most of inflation most of the time) but represents more the difference in cost to you for a consumer good (especially elastic ones). The picture is much less rosy but represents the median person this way, not tech workers.

Suppafly 2y ago

>In practice, the inflation rate for most sectors is very different to the CPI average, so these “adjusted for inflation” numbers are pretty meaningless. That's a good point that people often ignore. It's especially relevant when talking about technology, where pricing tends to fall, not rise. Pi feel like they should cost like $20 now considering they make them at way higher numbers than in the past and that the technology isn't anything particularly unique.

fulafel 2y ago
Some things go up in price as features and mass market appeal go up. For example iPhone. You do have the launch Pi feature set available in the Pi Zero which is much less than 20 USD.
- Suppafly 2y ago
  iPhone is, in some senses, a luxury good but they at least try to make the new versions have some features that justify wanting to buy a new one vs keeping your existing one. I guess no one needs a Pi either though, so maybe it is a better comparison than I initially thought.