Crazy how the world today has become – prices increasing, supply and demand being out of proportion, currencies decreasing and inflation and deflation by the minute. Whatever has happened to the world today has surely changed the perception of business and finance.
The cost of living today has increased drastically. Before, an item that you can buy for a dollar, now costs ten dollars. This is true in all the nature of businesses, specifically real estate. So why is this happening?
The Reasons why Cost of Living keeps Going Up
The rising cost of living is a multifaceted issue driven by a variety of economic, social, and political factors. Here are some of the key reasons:
- Inflation
- Housing Costs
- Health Care Costs
- Educational Costs
- Energy Costs
Inflation
Inflation happens when the demand for goods actually is exceeding the supply. Everytime this happens, prices rise. This usually occurs in a growing economy where spending is high. Central banks usually manage the inflation by having to adjust the interest. When there is a low interest, borrowing and spending are usually stimulated.
Housing Costs
Real estate today has definitely contributed to the rising costs. The cost of living has risen also because of how houses and lands today have gone up. Once the market in this nature goes up, the rest of the retail and produce also go up. This is like a proportionate level of standard where the increase of the other causes an increase of another.
Health Care Costs
Due to medical advancements, new technologies and treatments have increased. The modern world has caused health care to be modern and more developed causing more expensive treatments, administrative costs and the like.
Educational Costs
Surely, education has also caused such an increase in the living cost nowadays. Although there is public education, there are still private schools that cannot help but to have to increase their fees in order to cover administrative costs and man power. The increase of the educational cost and expenses have contributed to the usual inflation in the market.
Energy Costs
In this manner, the importance of wind and solar powers become evident. Energy costs have also pushed inflation and increased living costs around the world. The world today has definitely changed three sixty compared to how it was years ago. This is mainly because of the recent changes that have happened.