View Single Post
11-13-2012, 06:50 PM
#344
Czech Your Math
Registered User

Join Date: Jan 2006
Location: bohemia
Country:
Posts: 3,568
vCash: 50
Quote:
 Originally Posted by Rhiessan71 Good analogy actually...if we were comparing Gretzky's \$20 in 1975 to Jagr's \$20 today. Too bad we're talking about Gretzky's \$20 from '91-'99 vs Jagr's \$20 from '91-99 eh?
It's more like Gretzky "earning" \$20 when there was goal inflation, while Jagr earned \$15 during that period. Then in a period of goal deflation, Jagr earned \$20 and Gretzky earned \$15.25.

So Gretzky earned a quarter more, but Jagr's extra five bucks would have bought more during that period than Gretzkys extra five and a quarter would have in the previous period.

If you asked them each to buy loaves of bread or gallons of gas with the money they earned each year, Jagr would have ended up with slightly more. Yet, Gretkzy actually made slightly more in "nominal dollar" terms.

Quote:
 Originally Posted by Taco MacArthur You're evidently still missing it. I really can't make this much simpler; however, you're derailing the thread, so I'll try one more example. Hopefully you'll be able to find a snappy LOLCat for your rebuttal. Suppose that Millionaire A has \$10 million in 1975, and has \$500 today. Millionaire B has \$500 in 1975, and \$10 million today. Are you suggesting that these are equivalent? And that Millionaire A and Millionaire B has/had equal purchasing power? But they're the same two years, right?
Great minds think alike.