NWFlyer 2 #1 January 23, 2008 Is there something about human nature that causes us to expect certain consumer goods and services to be exempt from the effects of inflation? For example: Gas Movies Soda from a vending machine Jump tickets Is it because these are items for which we are hyper price aware? Is it because these are items for which there seems to be a broad, prevailing "market price" with a narrow price variation? Neither of those factors seems to be strong enough to explain why we as a society would somehow expect the prices of those items not to rise, yet there seems to be a collective expectation that they will not rise, and they are held up as examples of the rising cost of living. "It now costs me $50 to take my wife and kids to the movies, and that's before I've even bought popcorn! When I was growing up my dad could take us for $20." "I used to be able to buy a soda from the vending machine for 50 cents and now it's 75 cents." "I can't believe jump tickets went up another dollar to $24. Back when I started in 1985 they were only $14. I can't afford to skydive anymore" I've seen people bitch about skydiving gear costs and run their numbers through an inflation calculator and it's the same amount they paid 30 years ago in real dollars. (Other times, they have a point - in real dollars, the costs have gone up, but other factors, such as quality or cost of production may have come into play since). Yet at the same time, the average cost of most other consumer goods (many electronics excluded) has risen with inflation, the cost of housing has increased (dramatically in many markets), the cost to feed and clothe a family is rising ... but somehow it's the specific items above that human nature focuses on. Theories? Something I'm missing?"There is only one basic human right, the right to do as you damn well please. And with it comes the only basic human duty, the duty to take the consequences." -P.J. O'Rourke Quote Share this post Link to post Share on other sites
kelpdiver 2 #2 January 23, 2008 the problem people see with movie inflation is that as the number of films viewed in ones lifetime increases, the perceived quality of new ones goes down. This is why the young customers are so key. They don't know that they're watching the 100th remake of the same action movie. It's still original to them. (I'm really screwed when I get even older and more jaded.) -- Gas is really about having to pay for it so often, and that historically it didn't show signs of inflation. And of course now, it really is shooting upwards. Quote Share this post Link to post Share on other sites
lawrocket 3 #3 January 23, 2008 Oh, indeed. The price of gold is a pretty good example. Earlier this month, gold prices hit an all time high of $914 per troy ounce - and many predict $1000 by 2009. The previous record high for gold was $850.00 per troy ounce, which was set in 1980. Question: If you had bought the gold at $850.00 in 1980 and sold it today at $914, how much money would you hav lost in adjusted dollars due to inflation? That $850 in 1980 works out to about $2,200.00 today. So, selling at $914 would result in a loss of $1,286 in adjusted dollars. This is due to inflation. My wife is hotter than your wife. Quote Share this post Link to post Share on other sites
pirana 0 #4 January 23, 2008 By human nature do you mean an explanation that can be homogenously applied across all or most humans? Then . . . . No. Everybody has their personal mix of petty nuerosis. Next question." . . . the lust for power can be just as completely satisfied by suggesting people into loving their servitude as by flogging them and kicking them into obedience." -- Aldous Huxley Quote Share this post Link to post Share on other sites
Andrewwhyte 1 #5 January 23, 2008 Maybe most people compare prices to wages rather than other prices. Quote Share this post Link to post Share on other sites
Andrewwhyte 1 #6 January 23, 2008 QuoteOh, indeed. The price of gold is a pretty good example. Earlier this month, gold prices hit an all time high of $914 per troy ounce - and many predict $1000 by 2009. The previous record high for gold was $850.00 per troy ounce, which was set in 1980. Question: If you had bought the gold at $850.00 in 1980 and sold it today at $914, how much money would you hav lost in adjusted dollars due to inflation? That $850 in 1980 works out to about $2,200.00 today. So, selling at $914 would result in a loss of $1,286 in adjusted dollars. This is due to inflation. Gold was grossly overpriced in 1980. That is why the price subsequently fell and did not return to that level for more than twenty five years. Quote Share this post Link to post Share on other sites
wmw999 2,589 #7 January 23, 2008 We all object to the effects of inflation on prices (they go up) than on our wages (they also go up, even when we're still doing the same job). Wendy W.There is nothing more dangerous than breaking a basic safety rule and getting away with it. It removes fear of the consequences and builds false confidence. (tbrown) Quote Share this post Link to post Share on other sites
Misternatural 0 #8 January 25, 2008 Maybe we can come up with some sort of formula, There must be a socioeconomicpsycologist out there who has a thesis on this one.Beware of the collateralizing and monetization of your desires. D S #3.1415 Quote Share this post Link to post Share on other sites
nanook 1 #9 January 25, 2008 QuoteQuoteOh, indeed. The price of gold is a pretty good example. Earlier this month, gold prices hit an all time high of $914 per troy ounce - and many predict $1000 by 2009. The previous record high for gold was $850.00 per troy ounce, which was set in 1980. Question: If you had bought the gold at $850.00 in 1980 and sold it today at $914, how much money would you hav lost in adjusted dollars due to inflation? That $850 in 1980 works out to about $2,200.00 today. So, selling at $914 would result in a loss of $1,286 in adjusted dollars. This is due to inflation. Gold was grossly overpriced in 1980. That is why the price subsequently fell and did not return to that level for more than twenty five years. It still hasn't returned to that value. Numerically it surpassed the dollar amount but not its worth._____________________________ "The trouble with quotes on the internet is that you can never know if they are genuine" - Abraham Lincoln Quote Share this post Link to post Share on other sites
Royd 0 #10 January 25, 2008 QuoteIs there something about human nature that causes us to expect certain consumer goods and services to be exempt from the effects of inflation? For example: Gas Movies Soda from a vending machine Jump tickets I enjoy the food at Golden Corral. Generally, I eat there at least once a week. Normally, I have a plate of meat and veggies, and a plate of salad. Then, I'm full, and done. I have watched the prices shoot up from about $9 to $13 in about 4 months. The other day, something clicked in my brain, and I said to myself, "This is BS. I can't eat $13 dollars worth of food." They'll be lucky to get my money once a month. For the cost of one meal, I can feed myself at the house for four days. Quote Share this post Link to post Share on other sites
pirana 0 #11 January 25, 2008 QuoteI enjoy the food at Golden Corral. Is that like the Hungry Heifer? Old Country with a little local charm thrown in?" . . . the lust for power can be just as completely satisfied by suggesting people into loving their servitude as by flogging them and kicking them into obedience." -- Aldous Huxley Quote Share this post Link to post Share on other sites
rehmwa 2 #12 January 25, 2008 QuoteQuoteI enjoy the food at Golden Corral. Is that like the Hungry Heifer? Old Country with a little local charm thrown in? Yup, with deep fried ocra, too. I haven't even seen one in 20 years. ... Driving is a one dimensional activity - a monkey can do it - being proud of your driving abilities is like being proud of being able to put on pants Quote Share this post Link to post Share on other sites
