On Monday we all go to the offices and factories we work at and produce goods and services. We exchange these goods and services among each other for mutual benefit. On Tuesday it's declared there is a recession. The same offices, desks, factories, machines are still sitting in the same...
When prices increase we pay more for goods and services. Cost of living is higher because of inflation - we have to work more to earn enough money to buy the same goods and services. Who is at the other end of that transaction? Who is it that gets paid...
On Monday we all go to the offices and factories we work at and produce goods and services. We exchange these goods and services among each other for mutual benefit.
On Tuesday it's declared there is a recession. The same offices, desks, factories, machines are still sitting in the same buildings, but now for some reason we stop going to work, and we stop exchanging goods and services.
Why is that? We could decide to just go to work anyway and do the exact same thing we did on Monday - the desks and machines are still there exactly the same as yesterday for us to use, and we can still exchange goods and services at will.
When prices increase we pay more for goods and services. Cost of living is higher because of inflation - we have to work more to earn enough money to buy the same goods and services. Who is at the other end of that transaction? Who is it that gets paid more for the same goods and services? Until everyones gets a raise so they can work the same number of hours to afford life as before inflation, someone is profiting. Who is that?
Working hours could be reduced by lowering cost of living. According to the Bureau of Labor Statistics (BLS), the average household spends $5,111 each month on housing and other monthly expenses. $1,784 or 35% of that is for housing and $819 or 16% is for transportation. So those 51% of our working year (~6 months) is spent earning money to pay for housing and transportation - and I believe that's way more that it needs to be.
With people moving closer together into cities property prices seem to naturally skyrocket. The more densely populated an area becomes the more people seem to want to move there. So as housing supply in an area... (read more)