I'll buy (heh) that *maybe* there's some anchoring effect here, in the same way our parents (and probably now us) look at the prices of everyday things and recall how much less expensive they used to be, even when the current price is less than it would be if the price of yesteryear had matched inflation. But these girls are 8. They aren't old enough to have developed that kind of long memory.
I think their shock is better understood if we remember that money is simply a medium of exchange. If an ice cream treat is priced at 15 minutes of your labor equivalent, that's the case regardless of the value of a unit of fiat currency. But when it's suddenly being priced at 60 minutes of your labor equivalent, bloody hell that's outrageous.
She explicitly said that the vans on her street were only 1-2 pounds each, so she has a reference point for her anger. The reference point doesn't always have to be historical. I think your second comment is how people should be responding to different prices, but I don't think 8 years old thing about prices in terms of units of work time.
Ah, good point about historicity not being the only way to anchor.
I'm *pretty sure* the UK doesn't have child labor anymore, so you're almost certainly right that they don't think of prices in terms of unit work time. But they intuitively understand what else is a "quid equivalent" in their world, whether it's an ice cream or a hair clip or whatever.
Fascinating subject. I guess unlike the price of a pint of lager, or a cup of coffee, the decision to buy an ice cream from a van often only takes place a few times every summer. The consumer only has last summer holiday as a reference point.
The ONS ice-cream chart includes tubs of ice cream sold in supermarkets rather than those sold in vans. The latter has been impacted by the cost of fuel especially so I'd bet inflation is higher.
Bloody hell, he ain't going nowhere. Bet he can hear me...then goes back to being kids...the global nature of economics does impact ... Turmoil in middle east means turmoil in suez canal route, russo-ukraine war, economics sanctions against other sovereign countries do interfere with economics and wealth creation and comes inflation and the necessary rate of interest by central banks.
I'll buy (heh) that *maybe* there's some anchoring effect here, in the same way our parents (and probably now us) look at the prices of everyday things and recall how much less expensive they used to be, even when the current price is less than it would be if the price of yesteryear had matched inflation. But these girls are 8. They aren't old enough to have developed that kind of long memory.
I think their shock is better understood if we remember that money is simply a medium of exchange. If an ice cream treat is priced at 15 minutes of your labor equivalent, that's the case regardless of the value of a unit of fiat currency. But when it's suddenly being priced at 60 minutes of your labor equivalent, bloody hell that's outrageous.
She explicitly said that the vans on her street were only 1-2 pounds each, so she has a reference point for her anger. The reference point doesn't always have to be historical. I think your second comment is how people should be responding to different prices, but I don't think 8 years old thing about prices in terms of units of work time.
Ah, good point about historicity not being the only way to anchor.
I'm *pretty sure* the UK doesn't have child labor anymore, so you're almost certainly right that they don't think of prices in terms of unit work time. But they intuitively understand what else is a "quid equivalent" in their world, whether it's an ice cream or a hair clip or whatever.
I suspect probably both factors are at play.
Fascinating subject. I guess unlike the price of a pint of lager, or a cup of coffee, the decision to buy an ice cream from a van often only takes place a few times every summer. The consumer only has last summer holiday as a reference point.
The ONS ice-cream chart includes tubs of ice cream sold in supermarkets rather than those sold in vans. The latter has been impacted by the cost of fuel especially so I'd bet inflation is higher.
My inexperience with UK data came through on this one. I could just not wrap my head around whether any chart/graph I found was legitimate.
Bloody hell, he ain't going nowhere. Bet he can hear me...then goes back to being kids...the global nature of economics does impact ... Turmoil in middle east means turmoil in suez canal route, russo-ukraine war, economics sanctions against other sovereign countries do interfere with economics and wealth creation and comes inflation and the necessary rate of interest by central banks.