- Written by Mr. D
Why is rent so high? Actually, I suppose it depends on where one is living. In some cities, rent is pretty dirt cheap compared to other, more populated cities.
Overall, however, prices have gone up for nearly everything. The reason is due to inflation but if people would just stop raising prices, wouldn't inflation not really be an issue? Why is an ice cream bar that used to cost 25 cents now $1.50? It's because the ice cream man has to pay more for his supplies. Why are the supplies more expensive? Because the producers have to pay more for operating expenses.
Part of this deal with supply and demand. When there is a shortage of bananas, for example, naturally, its price has to raise. One part is so the producers can make more money (or reduce losses), and the other part is because with less supply, some people are willing to pay more. This also helps slow down the running out of bananas in this case.
This example could apply to rent as well. The more people who need a place to rent, the more rent can increase assuming there are not enough places to rent for everyone. If you're a homeowner renting out a room and have 10 applicants, with all else being equal, if one is willing to pay more, you'd naturally choose that person. As more and more people do this, rent prices steadily increase. As rent increase, living costs increase. These people will now need bigger salaries to sustain their current standard of living.
When enough people aren't making enough to have a decent standard of living, a demand for increased minimum wage is often brought up. Due to pressure, wages go up, employers now have to pay more so in order to keep profits, they have to raise the price of their goods. Over time, this makes the cost of living go up, eventually causing the need for an even higher minimum wage.
And the cycle goes on.
Imagine 200 years from now, where being a millionaire isn't that big of a deal anymore because people will need around that amount just to have a decent standard of living. This is assuming that the dollar doesn't collapse of course.
Because living gets more and more expensive, we as humans have to keep working to make money in order to survive. So life, therefore, becomes slaving over money just to survive.
A bit of a depressing way to look at life isn't it? But then again, what choice do we have if we lack money?