A car is a car is a car. The basic design and function, hasn't changed since before the Ford Model A. My new car in a lineal descendant of the Model A. The one became the other, in an evolutionary process, ten thousand incremental changes.
The communication system in a car has evolved, from nothing to a radio to a cassete player to a CD, to position-sensitive data pulled off the net (coming soon). Just about every system in any car today has had a similar evolution, and, today, can do far more, with more reliability, than the Model A could. But they are all still cars.
If you consider each tiny incremental change to be the creation of a new product, totally de novo, whose price cannot be compared to any previous product, then, for you, the change in price of goods can only be measured in a totally static world. Say, the world as it existed in the 14th Century, certainly no time in the last 200 years. That's the implication, if any product (or service, I suppose) that changes, becomes a new product. |
