Economic indicators, useful or meaningless?

CLAPTON

padington wrote: »

It would be really interesting to know what the real rate of inflation really is, especially in London.

Although it would probably cause a riot if enough renters knew exactly how much poorer they are becoming every year what with the advent of QE.

do you say that because you know the composition of the 'average' consumption of all the 8 million people in London?




do you suspect that the result will be lower than the national rate of inflation?

uncreative

In that inflation is just an abstract mathematical device to balance out the application of interest, which itself doesnt exist, to capital sums of money that themselves dont exist, we should use whatever "economic indicators" we want.

For example, on a hypothetical Tuesday, the workers in a factory are busy making very important widgets, the raw materials are there, the skills are there, the machinery is there; then somewhere else someone takes a decision and the workers are all laid off. They still want to make widgets, the world needs widgets, the capability is there - the only thing stopping them making widgets is "a lack of money" somewhere that doesn't really exist.

Madness.

padington

CLAPTON wrote: »

do you say that because you know the composition of the 'average' consumption of all the 8 million people in London?

do you suspect that the result will be lower than the national rate of inflation?

I say that because the current inflation statistics very poorly reflect the weakening spending power of us all when buying things in the UK once housing costs are truely considered like they should be.

PasturesNew

I don't think the 5-10 minutes I spend a day on cooking/cleaning would turn the wealth of a country around.

Maybe I am underestimating my own awesomeness.

CLAPTON

padington wrote: »

I say that because the current inflation statistics very poorly reflect the weakening spending power of us all when buying things in the UK once housing costs are truely considered like they should be.

so you are saying that sales of products and services are falling due to falling 'real' incomes?

Generali

padington wrote: »

I say that because the current inflation statistics very poorly reflect the weakening spending power of us all when buying things in the UK once housing costs are truely considered like they should be.

The RPI does measure housing costs.

CLAPTON

PasturesNew wrote: »

I don't think the 5-10 minutes I spend a day on cooking/cleaning would turn the wealth of a country around.

Maybe I am underestimating my own awesomeness.

well I think you are awesome and modest too.
you should add the time you spend on this board under 'media' 'entertainment' or similar

Thrugelmir

padington wrote: »

It would be really interesting to know what the real rate of inflation really is, especially in London.

Although it would probably cause a riot if enough renters knew exactly how much poorer they are becoming every year what with the advent of QE.

Inflation has been a key policy of all Governments since WW2. Surprising that no one has ever complained before. Perhaps it's because that debt finally has become a problem that inflation no longer provides the answer to. As there's plenty of people willing to work for a lot less.

padington

Generali wrote: »

The RPI does measure housing costs.

It doesn't measure the increase of the price of houses.

padington

CLAPTON wrote: »

so you are saying that sales of products and services are falling due to falling 'real' incomes?

I'm saying what I clearly said already.

padington wrote: »

I say that because the current inflation statistics very poorly reflect the weakening spending power of us all when buying things in the UK once housing costs are truely considered like they should be.