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A comment on Better technology means higher expectations, which creates more work. Parent comment
Look at the fraction of GDP that goes to labour, capital and land at any point in time. No need to adjust for inflation this way.
Or viewed another way: you are adjusting for inflation, but your basket is the entire GDP, which you arbitrarily set to 1.
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Look at the fraction of GDP that goes to labour, capital and land at any point in time. No need to adjust for inflation this way.
Or viewed another way: you are adjusting for inflation, but your basket is the entire GDP, which you arbitrarily set to 1.