Yesterday, I showed how Consumer
Prices Have Soared 160% Since 2001 for everything from burritos to
healthcare. This enormous loss
of purchasing power is not reflected in the official measure of inflation,
which claims inflation is subdued (1% or so annually).
But price inflation doesn’t necessarily reflect all the
inflation that’s hidden in plain sight in smaller quantities and
declining quality. We’ve all
observed prices of consumer items remaining the same while the amount of the
product we receive for our money is less than it was a few years ago. .. While
a reduction in product quantities can be easily calculated, reductions in
quality are harder to discern and calculate.
Consider the quantity and quality of the paint being
applied to kitchen appliances. Although I can’t quantify this, I’ve noticed
appliances such as ranges and refrigerators are now prone to rust along the
bottom edges in a few years because the manufacturers no longer apply much
paint to surfaces and edges that are not visible, for example the underside of
the steel exteriors. .. This sort of rust was unknown in older appliances, or
would only be visible after decades of service, not a few years. .. I also
notice that the paint is now so thin that scrubbing will in some cases remove
the top layer of paint.
Big Pharma has been busy jacking up the cost of
medications that are off-patent by 500% or more. Meds that were a few
dollars are being increased by 1,000% because, well, Big Pharma can raise
prices without delivering any additional value.
Can we be honest and say that many of the reductions in
value, quantity and quality are actually instances of fraud?
Whether we attribute inflation in plain sight from
reductions in value, quantity and quality to cost-cutting, planned obsolescence
or fraud, the reality is that these declines in purchasing power and value
(i.e. inflation) are real but difficult to calculate and track.
That is why inflation in plain sight is so attractive
to corporations and institutions.
….
----
----
No hay comentarios:
Publicar un comentario