Inflation

[pontifex]

Let me preface this by saying I have never had an economics course or anything like that. If you want to explain it to me in a rational manner, fine, just don't go acting all superior and calling me names or telling me I'm stupid, which normally happens when someone asks a question about something they don't understand. The whole point in asking is to learn, so don't make the only thing I learn is that you're a fvcking elitist douchebag.

Now for my question.

Why is it that when people complain about the price of something on this forum, people bring up inflation.

For example, the video game price thread. Here is a quote:

"I can't believe people are complaining. Old school Nintendo games were $50 a pop over 20 years ago. They are still only $50 a pop, even though games costs tens of millions to make now, compared to $100,000 back in the day. Further....factoring in inflation, a game that cost $50 20 years ago, should cost $93 today and that's not even stating the fact mentioned above, that they cost much much much more to develop."

Is inflation really relevant? If the game was released today, it would still cost $50, wouldn't it? I mean thats what the games today are selling for, right? The value of the dollar was different back then, not the price of the game, correct?

I just see this all the time on this forum and it doesn't really make sense to me.

 

[FoBoT]

Originally posted by: pontifex
The value of the dollar was different back then,

that is inflation

 

[iwantanewcomputer]

if the inflation rate had been zero over those years, the game would cost less than it used to.