Friday, February 19, 2010

Olympic point stability

A recent post of mine over on the Blog at Mises.org:









Olympic point stability
Jim Fedako

Given a fixed amount of money and increasing productivity, the value of money rises relative to the value of other goods (all caveats apply). The consumer sees this valuation change through falling prices at the checkout line.

Interestingly, given a fixed amount of points and improving performances in Olympic events, the value of each point rises relative to the underlying set of skills (jumps, spins, etc.). The viewer see this through falling points at each subsequent Olympics.

So, while Shawn White's recent halfpipe performance was valued at over 48 points, the exact same performance will be worth something less in four years.

It's a wonder that the Chicago School hasn't advocated some standard (say 5%) increase in available points per year in order to achieve Olympic point stability.


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