More Justification for False Inflation
https://youtu.be/L92eadRu6zE The Economics Explained YouTube channel explains in detail the mechanisms of inflation. The speaker states that price differences at different locations is the true inflation, not the reduction in the value of money, because these places are in the same country and use the same currency. This is wrong because it is like saying that the price of a Rolls Royce car is much higher than a Toyota because of inflation. Then the speaker proceeds to explain the reasons why there are price differences between California and Michigan, which are similar to the reasons for car prices at the same time and place. Prices of Rolls Royces have increased so it can be called inflation. After all, the usual definition of inflation is just the increase in the price of goods and services. Strictly speaking, it should be applied on a specific product at the same place but at different time, but this is rarely used. They lump groups of products together. No matter how r...