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Hypothesis: possible partial cause of the sudden spike ~ 1945 - 1960 where the graph takes off: Introduction of television into mainstream society. Fueled by
by indiejade 17y ago
Hypothesis: possible partial cause of the sudden spike ~ 1945 - 1960 where the graph takes off:
Introduction of television into mainstream society. Fueled by advertising, everything "costs" more: entertainment is fueled by advertising. News is also fueled by advertising. Advertising places a new layer of "value" on products, causing the sudden perceived need to pay more.
Interesting data.
- cperciva 17y agoThe graph "takes off" where it does because economists figured out that deflation harms the economy by encouraging irrational hoarding of money. Modern central banks aim to keep inflation predictable, low, and positive; several banks have explicit targets (usually 2%) which are chosen largely by asking the question "given that inflation rates have inherent volatility, what's the lowest average inflation rate we can have without volatility regularly pushing it below zero?"
- indiejade 17y agoThis is true; regarding this specific time period, however, there were definitely some large historical events that contributed to prices rising. The logarithmic scale reveals it as well. Vietnam, yes, but also that whole patriotism thing, news reporting, and "Buy American" which was, obviously, fueled by the birth of the advertising age.
- deleted 17y ago[deleted]