So the problem is that GDP naturally counts today’s $900 chip as equivalent to one produced over two decades ago, even though the current one is more than 72,000 times more powerful for the same price. Thus, nominal wealth and income increases over the past few decades do not properly reflect the massive lifestyle advantages enabled by new technology. This distorts the interpretation of economic data and creates misleading perceptions, such as apparently slow or even stagnant wage growth. Even if your nominal wages stayed flat over the past two decades, you can now buy many thousands of times
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