I agree that inflation hasn’t been 2% in awhile but the idea of using the value in the stock market as a measure of inflation instead of the value of consumer goods is so developed-country-centric.

The scenario about how you would invest the bulk of a windfall of $1million is true but not appropriate as an example because majority of people don’t get that windfall. Majority of people in fact spend the bulk of their money in buying consumer goods and not in investing.

If you’re trying to get a raise on your salary the increase of a company’s value may make sense for negotiation but if that’s the only time when it makes sense, why would we redefine what inflation is and make economics even more confusing for most of the people who don’t have the time to study it, rather than just create a new word for that instance?

Design and Strategy living in between Manila, Seattle and New York. Writing about design things and things in Design. And sometimes random things.

Design and Strategy living in between Manila, Seattle and New York. Writing about design things and things in Design. And sometimes random things.