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As a semi-related discussion, cost of living studies have a difficult time dealing with technology change. Imagine a cost of living study in 1975 where one of the items priced was a television. You're talking probably a 19-inch set that cost a few hundred dollars. Now fast-forward to 2011 where you're pricing a television. Now it's a 40-inch high-definition TV for about the same price. The "cost of living" may not be different, but it now provides a much better lifestyle by default.
Same thing with phones. A phone in 1980 probably cost $20 a month to get your dialing phone that's hooked to the wall. Now a phone in 2011 may cost $80 a month or something, but you get internet, e-mail, texting, voice mail, a bunch of games, and Microsoft Word or whatever. Did the cost of living really go up, or are you paying more for a lot more stuff and the phone is just a little part of the mix? But if you can't get the phone without buying the other stuff, your cost of living really did go up, but you're forced to simultaneously improve your standard of living.
It's a tough problem to figure out if you're doing these types of studies.
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