A thought-provoking chart, but I’m not sure this is the single-best chart of the century so far:
Various observations that have been made about the huge divergence in price patterns over the last several decades include:
a. The greater (lower) the degree of government involvement in the provision of a good or service the greater (lower) the price increases (decreases) over time, e.g., hospital and medical costs, college tuition, childcare with both large degrees of government funding/regulation and large price increases vs. software, electronics, toys, cars and clothing with both relatively less government funding/regulation and falling prices. As somebody on Twitter commented:
Blue lines = prices subject to free market forces. Red lines = prices subject to regulatory capture by government. Food and drink is debatable either way. Conclusion: remind me why socialism is so great again.
b. Prices for manufactured goods (cars, clothing, appliances, furniture, electronic goods, toys) have experienced large price declines over time relative to overall inflation, wages, and prices for services (education, medical care, and childcare).
c. The greater the degree of international competition for tradeable goods, the greater the decline in prices over time, e.g. toys, clothing, TVs, appliances, furniture, footwear, etc.