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My personal theory is that huge inflation is going on. We do not notice it's effect that much on household goods and food, because their manufacturing is getti
by AlexTWithBeard 8y ago
My personal theory is that huge inflation is going on.
We do not notice it's effect that much on household goods and food, because their manufacturing is getting cheaper every year, which cancels the effect of inflation. But for things which cannot be made cheaper (houses, education, theaters) prices have been growing way faster than official inflation numbers.
- javagram 8y agoHouses and education both can be made cheaper though? We are just choosing not to by building bigger houses and spending more money on education bureaucracy. Prices of healthcare, education, and housing are definitely going up a lot more than inflation in general though to be sure, I’d just say it’s because of policy choices we are making not because those items are inherently resistant to price decreases.
- AlexTWithBeard 8y agoIt's a good point. I was thinking more about the cost of the land: no matter how efficient we are, it's supply is limited. Same goes for the education: one teacher can handle a class of 30 kids no matter how advanced our technology is. Healthcare is a very different beast though...
- theandrewbailey 8y agoThe cost of housing isn't universal, and price changes are extremely local. Education (college/university) costs are going up due to bigger administrative departments and are sustained by government backed loans. Fewer people go to theaters nowadays, so theaters have to wring more money out of their customers.