1. Thursday, March 21, 2013 - 5:25 PM
Dear Mr Tumin,
The types of products and services that CPI typically measures are not what I'm referring to, but my experience is that the costs of goods and services have actually decreased!
On a lighter note, I'll cite a product "ETF" and I'll cite a service "brokerage".
Around 1995-1996, the cost of ETFs used to be rather high. Expense ratio of 1% was not all that uncommon. Now two of the ETFs from Schwab boast ER of mere 0.04% (e.g. SCHX, SCHB). ... So in this instance what used to cost 1% now has reduced by 96% !! ... So ... where's the inflation? ;-)
In earlier times, the trading commission used to be $50 or more ... then it dropped around $20 ... and then to less than $10 ... And now these are Schwab/Vanguard who offer the service of brokerage at ZERO dollars for some of the ETFs. ... So I guess we can say that actually the inflation is dead! ;-)
.....
On a serious note, the costs of appliances - Toasters, Irons, Microwavers, Dishwashers, Fridges have stayed rather steady over last few years ... Same goes for clothes.
Costs for healthcare products and services have gone up, and they continue to rise at somewhat steady pace.
Yours Truly,
- Anon
The types of products and services that CPI typically measures are not what I'm referring to, but my experience is that the costs of goods and services have actually decreased!
On a lighter note, I'll cite a product "ETF" and I'll cite a service "brokerage".
Around 1995-1996, the cost of ETFs used to be rather high. Expense ratio of 1% was not all that uncommon. Now two of the ETFs from Schwab boast ER of mere 0.04% (e.g. SCHX, SCHB). ... So in this instance what used to cost 1% now has reduced by 96% !! ... So ... where's the inflation? ;-)
In earlier times, the trading commission used to be $50 or more ... then it dropped around $20 ... and then to less than $10 ... And now these are Schwab/Vanguard who offer the service of brokerage at ZERO dollars for some of the ETFs. ... So I guess we can say that actually the inflation is dead! ;-)
.....
On a serious note, the costs of appliances - Toasters, Irons, Microwavers, Dishwashers, Fridges have stayed rather steady over last few years ... Same goes for clothes.
Costs for healthcare products and services have gone up, and they continue to rise at somewhat steady pace.
Yours Truly,
- Anon
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