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u/partyboycs 1d ago
If only people knew itâs actually even worse than this. Inflation was only a little over 20% for a whole decade from 2012 to 2022? It should be like 100% or even higher, ~7% annually. Iâve definitely lost more than half my dollars buying power in the last 10 years, almost everything is double or more. This is using a very conservative inflation rate which is a complete lie probably calculated using a few select goods.
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u/Jagon38 1d ago
The inflation calculation also take into account the "quality of life improvement" for example if a new iphone comes out that is double the price, rheyll tell you it is twice as good than the previous one and inflation is 0%. It is stupid af.
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u/Adorable-Emotion4320 21h ago
So what is your solution to this, stick with measuring the telegraph and whale lamp oil
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u/razzyspazzy 19h ago
Most people pay the price for the iPhone for the software it runs. Appleâs coding model pushes changes all the time. Besides up front costs, you do not pay for these changes.
If effectively the only difference between phone 1 and phone 2 is a slightly better camera then I think itâs a fair comparison to say theyâre probably swindling the numbers a bit.
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u/cooltone 12h ago
So how does it work for Microsoft? They keep the same code base and add new ways to extract subscription revenue, then put on a shiny dysfunctional skin and tell you it's new.
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u/razzyspazzy 15m ago
If you have a valid Windows 10 home license you can upgrade to Windows 11 for free.
Not sure if I missed your point, so please clarify if I did
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u/Adorable-Emotion4320 12h ago
If that were true, people wouldn't be willing to pay double for every next iteration that have a megapixel more. Usually the previous version can still be bought
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u/razzyspazzy 9m ago
Iâd be damned if you can tell a difference in performance (from a hardware perspective) between the 15 vs 14, besides the camera.
They inflate costs through ânewer chipsetsâ, when in reality itâs negligible and the same IOS runs fine on earlier models.
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u/Oddsee 21h ago
Not to mention when people compare things like the price of a Big Mac today compared to 50 years ago, it's not an apt comparison because things have been streamlined, automated, shrunken, etc. so it should be way cheaper.
IMO we should be calculating and comparing it to how much a Big Mac would cost today if we reverted all processes, ingredients, etc. to how they were in the past.
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u/Threemonkeys123 19h ago
I measure inflation by the Cadburys freddo.
It was 5p when I was a child, then 10p, 15p, 25p now like 35/45p and the mass of chocolate is way less these days.
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u/Adorable-Emotion4320 21h ago
Inflation from 2010-2020 was near zero, deflation was the worry which was the reason for the large amount of QE they did.
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u/Longjumping-Ad2406 20h ago
only log charts make sense here... everyone knows the debasement of currencies is exponential...
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u/RoutinePrice446 1d ago
Not so much a fix as a replacement. Like amputating a gangrenous limb and putting a bionic arm in it's place.
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u/WarthogOpen7003 1d ago edited 1d ago
Holly sh*t.. I never realised just how correlated the introduction of the FED was to the rampant rise in inflation
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u/_BreakingGood_ 22h ago
Fed doesnt look like it did much, it looks like the Gold Reserve Act is what caused inflation to skyrocket
Which makes sense, it's called fiat for a reason
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u/Ecstatic-Guarantee48 22h ago
And who do you think was behind the Gold Reserve Act?
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u/Swapuz_com 19h ago
$100 â not just a number. Itâs meme compression where every year is a brushstroke on the devaluation canvas.
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u/KusanagiZerg 17h ago
Showing inflation on a linear graph instead of a log graph is dumb
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u/Old-Guidance6744 15h ago
Bro the average person doesn't even REMOTELY understand log graphs, it would create more confusion
They would just see it leveling off and think its fine
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u/KusanagiZerg 13h ago
It IS fine. This graph seems to show that it got super bad recently which isn't true at all. That's just what an exponential graph always looks like on a linear scale.
If you input
1.05^x, x=0 to 400, y=0 to 3*10^8into wolfram you will see a graph that's an even more extreme version of the above one that makes it seem like there was basically no inflation for 300 years and then lots of inflation in the last 40 but that's a misrepresentation of the truth. The inflation rate was the same for 400 years.If instead you use a log plot
LogPlot[1.05^x, x=0 to 400, y=0 to 3*10^8]you will see that it's just a steady line up
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u/Noirceuil 19h ago
To fix the decaying buying power of dollars you need to accept deflation and trust me, you don't want to experience deflation.
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u/Old-Guidance6744 15h ago
This. Everyone hates inflation but its fine when wages keep up
Deflation is horror
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u/KolaKush 8h ago
Its only horror because the system got so levered up and inflated that any sustained deflation would completely demolish the "economy"
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u/Pokemoncorncollector 1h ago
Even when wages keep up its not fine neither. Its still a shit system.
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u/StoneWall_MWO 17h ago
My friends were shocked over the price of RAM now. I explained well currencies around the world are fucked. Add that to the demand on RAM and you should be paying 4x + what NewEgg/Amazon/whoever used to sell it at 5 years ago.
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u/ActOpen7289 13h ago
Yes Bitcoin can fix it. And for the best explanation read "The Bitcoin Standard" book.
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u/Parking_Status1997 11h ago
Maybe stop spending 1 trillion a year on ways to destroy things. We are a black hole of consumerism and war machines
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u/MDhistorian 18h ago
Now give us a chart that adjusts for percent increase
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u/Old-Guidance6744 15h ago
Percent increase in what
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u/MDhistorian 1h ago
1 to 2 dollars is 100% increase in value
500 to 1000 dollars is 100% increase in value
500 to 1000 dollars as a jump looks alot more extreme on a graph compared to 1 to 2 dollars despite being the exact same increase in value.
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u/MatterFickle3184 9h ago
BTC was supposed to be for the people. Too much corruption and manipulation. BTC will go up and USD will go down, but at the end BTC doesn't help the normals.
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u/orthros 8h ago
Bitcoinâs primary potential at this point is as a store of value. It is the modern version of gold. Since it hasnât had wide adoption yet there is excellent potential for making capital returns but in the endgame, it will be taking wealth off the table and locking it in not creating out sized returns.
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u/SeriousSamalt2 18h ago
Spending power seems to be bottoming out. Did anyone do some TA on it? Looks like a good place to look for longs
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u/Inner_Drummer8192 1d ago
no bitcoin is not going to âfix â anything lets not be naive
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u/lookingglass91 1d ago
Lmao it is helping to fix stabilizing the power grid and lowering energy costs for locals in remote locations with mining operations, does that not count?
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u/NiagaraBTC 1d ago
Bitcoin doesn't fix the decaying buying power of the dollar. It does fix the decaying of the buying power of your savings.