While it is true that change in the cost of living and inflation amount to the same thing across an economy with a common currency, the whole reason that people measure cost of living is to make comparisons with other regions. Inflation doesn't vary by region, cost of living does.
In other words, there's a darn good reason that there are two different terms. Nick > -----Original Message----- > From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED]]On > Behalf Of Gautam Mukunda > Sent: Saturday, January 19, 2002 2:55 PM > To: Brin-L > Subject: RE: Gummint programs and stats (was RE: Presidents RE: > Corruption ...) > > > > So we here in Silicon Valley shouldn't be concerned about the enormous > > increases in the cost of living over the last 20 years, since it just > means > > there's been inflation? If so, how come "inflation" hasn't > affected, say, > > Iowa, nearly as much? > > > > How would *you* calculate changes in the standard of living without > > comparing the cost of living to inflation-adjusted income? > > I would compare the cost of living to unadjusted income. > Standard of living > =income/costs > > Dan M. > > Like he said. :-) > > Gautam >
