Quote:
Originally Posted by blankall
I do think there has been higher than posted inflation since 2000. It's been hidden by getting lots of cheap goods from Asia. Rent, tuition, labour, food, etc... have all been increasing at far more than 2% per year. Meanwhile goods like electronics, clothes, etc... have not been increasing as quickly in price, as they were outsourced and the internet allowed their acquisition at cheaper prices.
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I mean yeah, that's how inflation works; it's a measure of prices paid. It doesn't matter why things are cheaper or more expensive, only that they are. If consumer goods are cheaper because of outsourcing, then inflation of the prices of those goods will be lower than it otherwise would be.
And at the same time, money saved on goods due to prices staying low will normally to find its way into other areas. So in the counterfactual where the price of goods rose at a faster rate, then things like housing costs probably wouldn't have risen as quickly because there'd be less money to spend on that.