But if you used to be able to afford steak and now all you can afford is ground turkey, readjusting the basket of goods for that shift in "preference" is just hiding the fact that nobody can afford steak anymore.

And similarly, the hedonic adjustments to smartphones sort of implicitly claim that the $100 cheap smartphone you can buy today is worth $8000 back in 2009 because of how much better processors and memory have gotten. But you can't buy an iPhone 1.0 for $1 to satisfy the need to have a phone that you can install apps onto (and the upgrade cost every few years as cheap phones can no longer run an O/S version that your banking app requires).

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libartsreader 5 hours ago | parent [-]

The assertion that the CPI simultaneously overlooks downward product substitution and prices in product improvements in order to paint an overly-rosy picture is belied by the fact that most stuff is cheaper than it’s ever been.

Thirty years ago, internet service was $2.95/hour (in 1996 dollars!), long-distance phone calls were 10 cents/minute, and a low-res 28” color TV with 5 channels cost a fortune.

	▲	dualvariable an hour ago \| parent \| next [-]
		> a low-res 28” color TV with 5 channels cost a fortune. Uh, back in 2000 (okay not quite 30 years ago, but getting close) I had a 36" Sony Wega which cost around $1500 with DirectTV and hundreds of channels. A 25" to 27" TV was more of a 1988 kind of thing (which is almost 40 years ago now). Being limited to 5 OTA channels was more of a 1980 thing. But again you can't really buy that Sony Wega anymore, even though the CPI probably prices it at $20 these days. Back 50 years ago, average household spend on the Internet was also $0, so it was very cheap, we weirdly didn't spend anything on it when I was growing up. Now I spend $80/month on it, and have trouble finding anything cheaper around here. If you want to consider "communications spend", back in 1988, you might have spent $50/month on your landline, cable tv and newspaper subscription. Today households tend to spend $280/month on internet, wireless and streaming/cable services. That is actually double the CPI. They get lots more for that, but the cost of being an average middle class household has grown at double the CPI. And these days you need the internet in order to keep up with Joneses, it isn't really a choice.
	▲	drBonkers 3 hours ago \| parent \| prev [-]
		I don't care about internet service, long distance phone calls, or TVs. I care about shelter, groceries, healthcare, and education. I can forego the former, I must buy the latter.