American Economics Thread

pbd456

Junior Member
Registered Member
For a long time while I was in US, food inflation was minimal for me (I left in April 2020).
I got olive garden pasta pass for 3 years in a row (one of them is a yearly pass, j just ate there pretty much every single day).

There were also app deals like McD premium sandwich for a dollar.

I think Costco hotdog is still the same price if you want to say US has no inflation. But there are in general far less deals than before.

There were also movie pass that allow people to watch a movie per day for 9.99 per month. I saw a movie every single day whenever possible.

I think the level of deals is far less now due to inflation. Last time I was in US in Oct 2023, I was still able to sign up new McD account to get some new user deal. However it does get smarter in not letting multiple devices logging on different accounts unlike years ago. The deal is also not as good. But it did feed me for almost a week (I had free breakfast from hotel) so I just eat one more meal in addition of hotel breakfast
 

AssassinsMace

Lieutenant General
I drink a lot of any brand diet soda. For a long time, dollars tree sells 3l bottle for 1 USD. Then. Cut it to 2.5 L a few years ago. But not sure how much it costs now for store band diet soda
We don’t have Dollar Trees around my area but they’re owned by the same company that runs the Dollar Store so I assume they sell the same stuff. I use to buy cheap snacks like cookies there. There were these chocolate wafers separately sealed two per package six total in box. One day I buy them and there’s suddenly one less. I believe they removed another since. Same box as always but now two less than the box can fit.
 

zbb

Junior Member
Registered Member
Food is typically grown locally and housing is also local. Both made in the US. And those had huge inflation values. Other US home grown goods and services also have had huge inflation. If it wasn't for Chinese imports, I think there would be ShadowStats levels of inflation in the US across the board.

Improvements in technology also artificially lower the official CPI numbers. Beginning sometime in the late 1990s, US official CPI calculations started incorporating hedonic quality adjustments.
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The hedonic quality adjustment method removes any price differential attributed to a change in quality by adding or subtracting the estimated value of that change from the price of the old item.

Consider the example of televisions. TVs are far better today than they were 20 years ago. With the hedonic quality adjustment,
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.

The average TV sold in 2004 cost ~$400, so according to official BLS inflation numbers for TVs, people should be spending only $14.65 on TVs of the same quality today. Of course, there are no TVs costing $14.65 today. In fact, the typical TV sold today likely cost more than the typical TVs sold in 2004.
 
Consider the example of televisions. TVs are far better today than they were 20 years ago. With the hedonic quality adjustment,
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.

The average TV sold in 2004 cost ~$400, so according to official BLS inflation numbers for TVs, people should be spending only $14.65 on TVs of the same quality today. Of course, there are no TVs costing $14.65 today. In fact, the typical TV sold today likely cost more than the typical TVs sold in 2004.
Does it also take into account that not only is fast food more expensive now, it also tastes even shittier?
 

pbd456

Junior Member
Registered Member
We don’t have Dollar Trees around my area but they’re owned by the same company that runs the Dollar Store so I assume they sell the same stuff. I use to buy cheap snacks like cookies there. There were these chocolate wafers separately sealed two per package six total in box. One day I buy them and there’s suddenly one less. I believe they removed another since. Same box as always but now two less than the box can fit.
Family dollar, dollar general is much worst than dollar tree! Dollar tree was used to be one dollars until a few years ago. Everything 1 dollar. Yes. They did cut the portion over time, even before the recent inflation (to be fair)
 

pbd456

Junior Member
Registered Member
Improvements in technology also artificially lower the official CPI numbers. Beginning sometime in the late 1990s, US official CPI calculations started incorporating hedonic quality adjustments.
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Consider the example of televisions. TVs are far better today than they were 20 years ago. With the hedonic quality adjustment,
Please, Log in or Register to view URLs content!
.

The average TV sold in 2004 cost ~$400, so according to official BLS inflation numbers for TVs, people should be spending only $14.65 on TVs of the same quality today. Of course, there are no TVs costing $14.65 today. In fact, the typical TV sold today likely cost more than the typical TVs sold in 2004.
These hedonic adjustment is just so crazy. Dies the consumption basket change? Like for cell phone, I think hedonic adjustment must be making a new phone a low price when the latest iphone is 1200 USD.
 

zbb

Junior Member
Registered Member
These hedonic adjustment is just so crazy. Dies the consumption basket change? Like for cell phone, I think hedonic adjustment must be making a new phone a low price when the latest iphone is 1200 USD.

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Smartphones experienced an average inflation rate of -14.24% per year. This rate of change indicates significant deflation. In other words, smartphones costing $1,000 in the year 2019 would cost $463.78 in 2024 for an equivalent purchase.
 
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