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Consumer prices increase 2.6 percent

bls.gov

191–195 of 195 posts

Re: Consumer prices increase 2.6 percent

#191

Earlier quoted context omitted.

Tangentially, wouldn't it be nice if we could buy a 1990-quality car for the inflation-adjusted price? Poor(ish) people would have a decent shot at actually affording reliable transportation and climbing up the ladder.

With the exception of a few brands (e.g. Honda, Toyota), I’m not sure the dismal mechanical quality of many 1990-quality cars would save people money versus buying a 10 year old used car for the same money. Remember, 1990 is still the era of the 5 digit odometer. Cars have gotten hugely more reliable over the years. A 2010 car hitting 200k miles is routine and expected; a 1990 car hitting 200k miles would be exceptio…

I hear what you're saying and I don't really disagree. But, at the risk of sounding like I'm not an environmentalist and I don't care about poor people, a new 1990s car today is still going to be better than a lot of what I see lower SES people driving today- if they're able to afford to drive anything.

You said it yourself: cars from the 1990s might last 100k miles! You think a poor person today is going to buy any used car that has 100k miles of life left? I highly doubt it.

As for the safety and emissions standards- you're right. That's a big part of what has driven up the price of cars. And while I know that they are less safe, were they really that unsafe? I mean, the 90s had airbags, seat belts, ABS brakes (at least some models). At the end of the day, I'm not saying I would be happy that a poor person could only afford the safety of a 1990s car. But what I am saying is that it's still better than what they have access to today. Ideally, we just wouldn't have people so poor that they can't afford safe transportation.

For emissions, specifically, I don't want poor people to have to pay the cost of saving our environment. I know a bunch of people who are financially comfortable enough to have multiple cars and/or recreational boats- let them pay for it. I'd be fine adjusting my wish to "1990s standards car + modern emissions standards, as long as the government subsidizes it such that it still would cost 1990s prices".

Re: Consumer prices increase 2.6 percent

#192
post #158

Earlier quoted context omitted.

With the exception of a few brands (e.g. Honda, Toyota), I’m not sure the dismal mechanical quality of many 1990-quality cars would save people money versus buying a 10 year old used car for the same money. Remember, 1990 is still the era of the 5 digit odometer. Cars have gotten hugely more reliable over the years. A 2010 car hitting 200k miles is routine and expected; a 1990 car hitting 200k miles would be exceptio…

There are so many great cars from Toyota and Honda from that era, too. If only they kept making 1/2G LS/GS, Mk4 Supras, 1G Tacomas, NSX, S2000s, B18 Civics. Way to ruin my day (:D /s) by bringing up their current offerings.

I just saw a new looking Supra on the road today. I didn't even know they started making them again after then stopped in 2000-ish.

Re: Consumer prices increase 2.6 percent

#193

The problem with printing money by governments is that every dollar printed means the value of that money is spread thinner and thinner. That means you need more of those thinner dollars to make up the value. It's like watering down the beer. You'll need to drink more glasses of that weaker beer to get the same effect. Every government gets away with printing money for a very short time, then the Zimbabwe Effect take…

The key similarity in all those situations was a loss of productive capacity. The Confederate currency wasn't backed by any assets, so it lost value as their defeat became more likely. Apparently, it lost 20% of it's value after the battle of Gettysburg. Zimbabwe's government seized the land of white farmers and gave them to people who lacked farming knowledge and experience. Predictably, their output cratered, spark…

The key similarity in all those situations was a loss of productive capacity.

And the US production figures have gone where in the last 40 years? In 1980 the US was the world's biggest creditor nation. By 1988 the US was the world'd biggest debtor nation.

The debt and deficit have only grown larger since then.

Re: Consumer prices increase 2.6 percent

#194

The problem with printing money by governments is that every dollar printed means the value of that money is spread thinner and thinner. That means you need more of those thinner dollars to make up the value. It's like watering down the beer. You'll need to drink more glasses of that weaker beer to get the same effect. Every government gets away with printing money for a very short time, then the Zimbabwe Effect take…

When will it happen?

Like the crack in the bridge over the Mississippi, the actual time can't be predicted. But that crack (amongst the thousands of other bridge problems) was certainly expected, and no surprise when it finally happened. A country is no different from a house. If you don't keep up the maintenance, things will definitely break sooner or later. The US's infrastructure has been lacking maintenance for decades.

Many talk about the financial problems like the acrobat spinning lots of plates on sticks. He's having problems keeping them going, and those plates are getting wobblier and wobblier.

If I have to make a prediction, I'd say in the next 5 years or so. So don't take on too much debt for you to handle, and start prepping for very difficult times.

Re: Consumer prices increase 2.6 percent

#195
post #137

Earlier quoted context omitted.

The U.S. BLS differentiates between "hedonic" and other quality adjustments: https://www.bls.gov/cpi/quality-adjustment/questions-and-ans... 3. What items in the CPI are hedonically adjusted? The CPI uses hedonic quality adjustments in item categories that tend to experience a high degree of quality change either due to seasonal changes, as in apparel items, or because of innovative improvements and technological cha…

What is the difference in methodology between “hedonic” and “cost based” adjustments? The site doesn’t say. For all intents and purposes (i.e. going by the Wikipedia/intro to macroeconomics definition), any form of accounting for changing quality of goods in inflation indices is a “hedonic adjustment.” The BLS distinguishing between “hedonic adjustments” and “cost based adjustments” (the latter of which they do not d…

Yep, sorry I don't have more information.
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