Why is everything so expensive? Why are things more expensive? The effective cost of living also depends on real wages. It is expensive to live in Nordic countries , but real wages tend to be higher.
For items, such as eating out – the US is often cheaper than many European countries, but Americans need to spend much more on private health care insurance. Originally Answered: why is everything so expensive nowadays ? The reason things are more expensive is because new money is continually created. New money is created when loans are made, and this leads to inflation (inflation of the money supply).
But when you adjust for inflation, the cost of most things has actually declined. Consumer prices were up 2. April from a year ago, while suppliers paid 2. Auto loans are getting more expensive because the Federal Reserve is gradually raising interest rates. It is called supply and deman I have it and if you want it, you will pay my price. A while ago in Ireland there was a massive boom time which we now refer to as the Celtic Tiger.
During this period everyone was quite well of and so could afford expensive things. However, due to the Recession now few people can afford. Some categories, such as education, healthcare and childcare, have seen inflation grow anywhere from from to faster than disposable income.