from - https://www.dailymail.co.uk/news/article-6647249/Chart-shows-cheaper-gadgets-toys-kept-masses-distracted.html 


'The modern equivalent of bread and circuses': Fascinating chart shows how ever-cheaper gadgets and toys kept the masses distracted while price of education, healthcare and childcare SKYROCKETED over last two decades

·         Chart released earlier this month shows 21 years of inflation in US by sector

·         Prices of TVs, toys, cellphone service and software have all plunged 

·         Meanwhile, childcare, healthcare and higher education costs have skyrocketed

·         Difference is due in part to trade deals that brought in cheap imported goods 

·         Wages have also remained relatively stagnant not much above inflation 



 

A stunning chart of U.S. inflation rates over the past two decades has shown how the prices of electronic baubles have plunged while the cost of childcare, healthcare and higher education skyrocketed.

The chart published earlier this month by economist Mark Perry for the American Enterprise Institute uses Bureau of Labor Statistics to chart inflation in several sectors between 1998 and 2018.

One pundit said of a previous version that the chart shows 'the modern equivalent of Bread and Circuses to sate the masses.'

The chart shows a huge divergence between electronic consumer goods, which are often imported, and goods and services that cannot be imported, such as healthcare and housing.




+3This chart shows price changes for goods and services from January 1998 to December 2018

Leading the declines in price were televisions, which dropped in price by 97 per cent.

Toys followed, dropping 74 per cent, along with software down 68 per cent and cell phone service down 53 per cent.

On the other end of the scale, many of the essentials to forming a middle-class family surged in price.

Hospital services skyrocketed 211 per cent, as college tuition and textbooks shot up 184 per cent. 

Overall, inflation was at 56 per cent, and wages were up slightly more than that at 80 per cent, indicating some growth in real wages, but not nearly enough to keep up with the fastest growing categories of inflation.

 

+3

·          

Leading the price declines were televisions, which dropped in price by 97 per cent (file photo)

 

+3

·          

Meanwhile hospital services skyrocketed 211 per cent, well above wages (file photo)

Free trade enthusiasts argue that the chart illustrates the benefits of globalism, saying that the flow of cheap toys and televisions from overseas has helped offset the quickly rising costs of healthcare and education. 

Someone on Twitter also argued that the chart demonstrates a divergence between sectors with heavy government intervention, and those with little government oversight.

'Blue lines = prices subject to free market forces Red lines = prices subject to regulatory capture by government,' the person wrote. 'Conclusion: remind me why socialism is so great again.' 

 

Well, it's not just regulatory pressures.  Part of it has to do with capitalist greed ... just look at the profit margins these hospitals and pharma companies have (like the oil companies).  There's probably a certain degree of collusion there and lack of any REAL competition.  People don't pick one hospital over another because it's cheaper.  Whereas the goods have gone down due to cheap Chinese labor, and sometimes the technologies to produce them have improved.  So, for instance, a 55" big screen TV cost $3,000 - $4,000 about 10 years ago.  Now you can get one for the upper $300s.  It's because the tech has changed (cheaper, lighter LED vs. LCD ... and more production lines mass producing them).