[Alberta's Child]

Right -- Productivity driven by advanced technology, in most of these cases. A new car, for example, costs a lot more now than it did back in 1981. But when you take into account how much more advanced today's car is, you'll find that it actually costs a lot less. A 1981 car that was equipped to 2007 standards probably would have cost about $100,000 back then.

How would you measure the TRUE inflation/deflation in a nation's economy?

[metesky]

How would you measure the TRUE inflation/deflation in a nation's economy?

Good question. The way I understand it, they take the cost of comparable goods, mostly perishibles (meat, veggies, milk, eggs), and compare yesterday's cost with today's.

But, imo, even this doesn't measure the difference in productivity in, for instance, the agricultural sector. For example, tomatoes could benifit from advances in fertilizers, thus yielding more on a per acre basis and making them cheaper, while at the same time the government printing press churning out greenbacks makes them more expensive.

OTOH, I'm just a simple carpenter and getting simpler by the day. I guess that as long as they keep printing money, I'll just keep on spending all that falls my way. Like on late spring afternoon cocktails over on the patio of the Brewer Inn...
:O)