At least in the US, purchasing power has declined with many for two factors: 1. Rising health care costs now 18% of GDP at over $3.2 trillion. As firms spend

At least in the US, purchasing power has declined with many for two factors: 1. Rising health care costs now 18% of GDP at over $3.2 trillion. As firms spend more on insurance, there is depressed wage growth, while direct employee contributions (some premiums, larger deductibles, co-pays) have been increasing. 2. In cities such as NYC (where I live), Boston, DC, SF, LA, ...there is rent-seeking in the real-estate market through zoning density restrictions causing market inefficiencies that increase the cost of housing far higher than in a functioning, efficient market. Harvard Economist Edward Glaeser has written about this in the context of affordable housing in NYC, in the article, Build Big Bill [DeBlasio, NYC Mayor] [1] 3. There are other cases of rent-seeking throughout the economy as well as other market inefficiencies through negative externalities and information asymmetry. Reasons why healthcare in the US is so expensive is negative externalities of smokers, air pollution, not paying their way for additional healthcare costs and information asymmetry where doctors have much more information than patients and patients may have much ore information than insurers related to medical conditions. [1]http://www.nydailynews.com/opinion/build-big-bill-article-1.1913739 http://www.nydailynews.com/opinion/build-big-bill-article-1....