People might not be in denial, but too many are clueless/uninformed about inflation and its effect.
You'd be surprised how economically iterate average people are. I had highschool colleagues who couldn't calculate VAT/sales tax out of a price on the whiteboard.
Sure, people have heard of the word inflation, they know this word exists, but they won't be able to explain how it works and its effects throughout the economy.
If you ask a random person on the street what inflation is (and what it is not) and how a 1950s dollar compares to today and what lifestyle the average single income household affords you then vs now, you’re going to get a wrong answer in both cases.
I mean: If you came up to me and asked about how the value of the dollar and average lifestyles compare between the 1950s and today, I wouldn't be able to answer that either. If you forced an answer on the spot, then I'd have to guess at it -- and that guess would probably be a wrong.
I simply don't know the specifics because that was 70 years ago and I wasn't around back then. I do feel confident that I could eventually produce a good answer (or perhaps even a great answer), but I'd have to do some homework in order to produce that answer.
But without that homework, it's just not something that I can relate to because my present perspective does not include it.
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Meanwhile: If you asked random people on the streets of Anytown, USA about what they feel about price of a Big Mac or rent today compared to 5 years ago, it might be rational to expect to get some pretty direct and sometimes livid responses.
People might not be in denial, but too many are clueless/uninformed about inflation and its effect.
You'd be surprised how economically iterate average people are. I had highschool colleagues who couldn't calculate VAT/sales tax out of a price on the whiteboard.
Sure, people have heard of the word inflation, they know this word exists, but they won't be able to explain how it works and its effects throughout the economy.
If you ask a random person on the street what inflation is (and what it is not) and how a 1950s dollar compares to today and what lifestyle the average single income household affords you then vs now, you’re going to get a wrong answer in both cases.
I mean: If you came up to me and asked about how the value of the dollar and average lifestyles compare between the 1950s and today, I wouldn't be able to answer that either. If you forced an answer on the spot, then I'd have to guess at it -- and that guess would probably be a wrong.
I simply don't know the specifics because that was 70 years ago and I wasn't around back then. I do feel confident that I could eventually produce a good answer (or perhaps even a great answer), but I'd have to do some homework in order to produce that answer.
But without that homework, it's just not something that I can relate to because my present perspective does not include it.
---
Meanwhile: If you asked random people on the streets of Anytown, USA about what they feel about price of a Big Mac or rent today compared to 5 years ago, it might be rational to expect to get some pretty direct and sometimes livid responses.