Originally Posted by
DatboyB
While its not a definition of inflation, it is an example of the relative decrease in purchasing power over the years. If, for example, the TDF winning bike from the respective years in the example is the best bike money can buy, one must work much longer in 2009 to pay for the "best." Its not a perfect example, but purchasing power and inflation are not the same.
You might not have used the right figures but I agree with your point. The real purchasing power for people earning normal income has not gone up much in US since the 70s (when multinationals started to outsource manufacturing), meanwhile the CHOICE for purchasing is increasing, thanks to the globalization.