But I don't really understand inflation and price hikes and wage hikes. WHY doesn't a house still cost $10k? Why aren't eggs still .25 a doz? Why isn't $30k considered a high wage? Remember when being a millionaire was astronomical money? Now we have multi BILLIONAIRES.
Which comes first, the price hikes or the wage hikes? And why?
I'm reading a book about old Hollywood and in the 1920s $100/week was considered pretty good pay. So how does that change? And don't tell me to take an economics class - someone on here can explain it to me for free.
So the answer is "nobody knows". I tried to ask an AI bot and it gave me the runaround.
Why does the cost of living go up?
Because of inflation.
What causes inflation?
Demand-pull inflation occurs when demand outstrips supply, often due to factors like increased money supply, rising wages, or government spending. Cost-push inflation arises when the cost of production (raw materials, labor, etc.) increases, leading to higher prices for consumers.
Why does cost of production increase?
Production costs increase due to a variety of factors including inflation, supply chain disruptions, labor shortages, rising transportation costs, and higher raw material prices. Additionally, increased labor costs, such as those resulting from higher minimum wages, can also contribute to increased production costs
So basically:
Inflation is caused by higher cost of production.
Higher cost of production is caused by inflation.
That may make sense to somebody but to me it's like getting the "Press x" runaround when you try to call a support desk.
I also don't understand why limited availability would make something more expensive. To me that's a psychological thing, perceived value. It's limited, therefore it must be more valuable and people will pay more for it. And PS, you poors can stay away because only the wealthy can have this thing. We charge this much for it because we can.
The economy doesn't really need to be this complicated.