30 years ago a single video disk would have cost you $150.
Deflation.
High end shoes and suits are half off. Deflation.
Computers and watches are cheaper. Deflation.
Cell phones and phone service (Vonage!) is cheaper. Deflation.
Satellite TV is cheaper than cable. Deflation.
High speed internet is cheaper today than dial-up was in 1990. Deflation.
Homes are cheaper today. Rents are lower today. Salaries are lower today.
Deflation.
Wal-Mart sold $140 Billion worth of groceries in the past 12 months by being cheaper than grocery stores.
Deflation. Limes are 15 for $1. Ears of corn are just $0.27 retail.
Deflation.
You can download new release movies for $5, or rent all of the movies that you want to see each month (Netflix!) for $10.
Deflation.
Cars are cheaper, aircraft are cheaper, and boats are cheaper today than in 2007. Used and new.
Deflation.
Prescription glasses were $300 to $800 last year.
This year you can get them online from Zinnioptical.com for $30 to $80.
Deflation. Even airline tickets are cheaper this year. Deflation.
No one is arguing that there aren’t a lot of deflationary forces in the economy right now (though computers and electronics always tend to be deflationary so that’s nothing new). What we’re saying is that the government is doing everything it can to prevent deflation and given the modest dips in the CPI, I would say unfortunately these efforts are relatively successful. You make it sound like prices are collapsing through the floor and in the aggregate that isn’t true (what is true is that there has been modest price deflation so far).