Sunday, April 30, 2006

The hidden inflation of low quality

We have two DVD/VCR combo devices at home. One has a broken VCR, the other a broken DVD. They each cost about $120 and lasted about 18 months.

We once bought a VCR for about $250 that lasted five years. We had a CD player that lasted 12 years, in today's dollars it probably cost $550 or so.

So prices have fallen by at least half, but lifespans have fallen by about 3/4. The cost of ownership has risen significantly.

I wonder if that shows up in our inflation statistics, or do they just measure the cost of purchase?

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