Thanks for the link. I did spend some time on it.
It seems that the whole CPI idea basically doesn't make sense with electronics and intellectual property, because it is usually specified by parameters that endusers don't care about, and IP is really hard to set a price tag on. You don't buy an iPhone because of it's CPU specs, but because Apple is good at designing new products. It's the design, not the hardware. I'm convinced that hardware developments actually often blinds and obstructs real innovation.
If we want an index that indicates the amount of money compared to the amount of available value, we need to define "value for whom". And if public perception changes, should the index change its value?
My mathematical background tells me, that it is very possible to define growth in a way, where a population goes from situation A to situation B, and then back to situation A, and to consider everything on the path as an improvement, even though the path ends where it started.
Where does that leave the dollar? I'm quite sure that Americans feel quite at home in USA and won't make a huge escape away in case of economic problems. The factual problems must have been known for decades in USA, and the changes to the numbers being made public must be attempts to solve the problem using psychology, based on the fact that CPI is already psychology. |
