Comment on Switch 2 Sales Reportedly Struggled Over The Christmas Period
UnfortunateShort@lemmy.world 4 weeks ago“How relevant is inflation, considering there is so much inflation that…”
Comment on Switch 2 Sales Reportedly Struggled Over The Christmas Period
UnfortunateShort@lemmy.world 4 weeks ago“How relevant is inflation, considering there is so much inflation that…”
echodot@feddit.uk 4 weeks ago
Inflation is the measure of how much buying power your money is worth. We just stagnation is we just not keeping up with inflation.
Wage stagnation isn’t a result of inflation because inflation happens first. So yeah when working out the equivalent price of a product inflation needs to be taken into account but so does how much money everybody has.
If $1 in 2005 is worth $15 today, but I still only get $6 an hour then it isn’t correct to say that a product that cost $15 today is effectively the same as a product costing $1 in 2005 because it’s not taken into the fact that I don’t get more money.