[KarlKode]

Hasn’t the percentage an average person spends on housing significantly increased in the past 50 (or 20) years?

Additionally I can’t follow your second thought: are you saying that the inflation rate is directly correlated with the rate of the value of innovation dispersement? E.g. a high inflation should eventually lead to a high dispersion of innovations/a more innovative culture?

[SubjectToChange]

Housing costs wouldn’t be on anyone’s radar if they simply grew with inflation.

[madsbuch]

they don't, they have the interest rate as a coefficient.

interest rates have reduced signitifanctly over the past 30 years.

also, remember that housing is not your San Fransisco condos. it is also the town house at some rural village.

[madsbuch]

the idea with the second statement is: the cost of bringing innovation to a market where inflation is higher makes it easier to pay back to cost of the innovation. ie. you pay your salaries at index 100 and get to sell them at a higher index.