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Inflation is a shit metric because it's easily manipulated.

The cost of a GB of hard drive is failing spectacularly. The price of health care went up much more than the price of eggs. So what is the "real" inflation?

Government gets to pick what they use to define inflation so they can manipulate "inflation" numbers. And manipulate they do.

What you should look at is money printing: how much money did the government print. This is about 8% yearly for US.

This money debasement is eventually reflected in prices.

Some things get cheaper, because we can produce them more efficiently (like hard drives). Some things get even more expensive than 8% because we produce them less efficiently (health care insurance or college diplomas).

So to answer your question: cars costs more mostly because the government prints money, which devalues your dollars and car makers are not getting more efficient at making cars to counter currency debasement.



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