Mises Wire

Olympic point stability

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.

All Rights Reserved ©
Note: The views expressed on Mises.org are not necessarily those of the Mises Institute.
Support Liberty

The Mises Institute exists solely on voluntary contributions from readers like you. Support our students and faculty in their work for Austrian economics, freedom, and peace.

Donate today
Group photo of Mises staff and fellows