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Doom
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has posted a comment on the article :

"How Can One Calculate True Price Inflation?" - Mish - Global Economic Analysis

Sorry for the double post, but my first comment vanished.

Lost in the above discussion is the mention of productivity increases, that should further factor into an inflation calculation. A lone man can harvest vastly more grain than decades ago--this should lower prices, but inflation has slurped up the benefit of better productivity. Similarly, high quality steel was worth more than its weight in gold a few centuries ago...now it's sold by the ton.

I admit any attempt to measure "inflation" by looking at individual product prices doesn't really work. It might be better to look at an aggregate, like how much people have over at the end of their lives.

In my grandparents (and to a lesser extent, parents) day, when the eldest died, the family would gather to divide up the estate. Nowadays, when the eldest dies, the family gathers to figure out how to pay for the funeral, and how to settle as best as possible other debts. It really seems like things have changed, and no matter how you measure it, what people get for their work (and lives) is less than it was.

Commented 3867 days ago

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Beginning of the headline : I have seen an analysis based on the old Sears catalogs of 30-50 years that shows how much more an average income can buy today versus 30-50 years ago based on actual prices in the catalog. It is very convincing. Do you think that is a valid approach or not? Keep up the good work, Mel Hello Mel I cannot comment on the catalog because I have not seen it. However, I will s... Read More

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