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Deflationary technology

Mar 06, 2023

Inflation has many faces and the overall CPI figures are made up of many different constituents. Since 2000, the biggest increase in US consumer goods and services prices has been hospital services, followed by college tuition, fees and text books. On the other side of the spectrum, prices of TVs, toys, software and cellphone services have been decreasing by more than 50% over the last two decades. That leads us to the conclusion that, in the long run, technology is deflationary by nature.

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