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mgas | 3 years ago

My personal take on this is that the idea of adjusting for inflation over time based on macroeconomic rates of inflation is useless (apart from showing that even though we make more money now, we can afford less). National inflation does not correlate with cost of living on a 1:1 scale.

The lesson is similar to the adage "the stock market is not the economy". Typical things that are presented to us as the proverbial market forces (jobs creation, stock market indices, currency valuations, national debt) are more often used as excuses by price-setters to increase costs for consumers, whether or not manufacturers and service providers (at any level) actually incur increased costs.

We as consumers are typically blind to this, and just accept that things get more expensive. Remember the oil issues in the early 2000s after the Deep Horizon leak and Hurricane Katrina? Gas prices went from ~$1/gal to over $3/gal for a while, then settled back in at around $2.50. And everyone was relieved and just ate that crap because they could finally fill up their suburban tanks without waiting in line. It's going to happen again here soon, when gas comes back down to around ~$4/gal (or $5.50 in CA).

Also, in what world does a stadium beer at a Padres game cost $5? Even a disgusting Bud Lite will run you north of $10. The reality of MLB is that you can probably get tickets for next to nothing, not need to pay to park (if your stadium is in an urban area and you are willing to walk a bit), but you will absolutely get gouged on food and drink. The movie theater model is in full effect.

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