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7/26/2025, 3:47:20 AM
>>511375090
>meanwhile, pic related shows inflation from 1950 to 2025 at 1200%
>am i missing something here?
The Inflation Calculator is based on the Consumer Price Index (CPI) which some like to refer to as CPLie. How is CPI calculated? Using a "basket of goods" that the typical consumer would purchase. What happens when inflation occurs however? Consumers cut back on the steaks and buy cheaper ground beef? Well well well, now the basket of goods changes to cheaper and cheaper good too. This masks the real inflation that has happened. If the basket of goods were constant, like 1 oz gold, 1 oz silver, 1 lb of granulated white sugar, etc, then real inflation would be exposed. But it is not, the basket of goods is not a fixed value of items.
What you have to do is look back at old prices, like this house, then get the current price using the same materials used to build it. You cannot substitute modern bricks which have holes in them for 100 year old solid bricks either. You have to compare them exactly. When you do that, you see how little the dollar is worth now compared to back then.
>meanwhile, pic related shows inflation from 1950 to 2025 at 1200%
>am i missing something here?
The Inflation Calculator is based on the Consumer Price Index (CPI) which some like to refer to as CPLie. How is CPI calculated? Using a "basket of goods" that the typical consumer would purchase. What happens when inflation occurs however? Consumers cut back on the steaks and buy cheaper ground beef? Well well well, now the basket of goods changes to cheaper and cheaper good too. This masks the real inflation that has happened. If the basket of goods were constant, like 1 oz gold, 1 oz silver, 1 lb of granulated white sugar, etc, then real inflation would be exposed. But it is not, the basket of goods is not a fixed value of items.
What you have to do is look back at old prices, like this house, then get the current price using the same materials used to build it. You cannot substitute modern bricks which have holes in them for 100 year old solid bricks either. You have to compare them exactly. When you do that, you see how little the dollar is worth now compared to back then.
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