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Rise in Cost of Living
It is expected that the price of goods and services is going to rise at a vast speed in coming years. Food, rent, housing, shipping, government fees, airline flights and college fees are some of the areas where you can experience a rise in price.
It is expected that the price of goods and services is going to rise at a vast speed in coming years. Food, rent, housing, shipping, government fees, airline flights and college fees are some of the areas where you can experience a rise in price. From mere water to the housing loans, everything is going to be affected. The price of gasoline is like rising like anything. The price of gasoline has experienced an increase of $3.63 per gallon in the year 2012. Municipal water average price rose from $50 to $70 which was last year's price. However, experts believe that the economy will come to stability in the coming year due to the improvements being noticed in auto sales, home investments and rise in home prices. Rising prices of homes is a positive sign that the economic status may get better as it creates wealth for the owners of the homes. With the improvement in the consumer market, it is believed that everything will be fine.
However, unemployment and low wages still persist and it pulls the country's economy downwards. As per the research done by the Bureau of Labor Statistics, more than one quarter of the 190 million Americans between ages 16 to 64, did not have a job in November 2012. It is a big hit on US economy that such a huge population is unemployed. Social security benefits are expected to rise 1.7% in the year 2013. Salaries of employees are also falling down. For an example, an individual who used to get $60-$70 is now getting only $50-$60. The cost of going to a movie, having drinks and dinner has also risen and it has an effect on the financial condition of common man. Prices for each and everything are seen to get a hike.
As per economists, the financial crisis that the US is dealing with is going to continue till 2015 or maybe till 2019. The interest rates are expected to rise as the housing market and the economy slowly recovers. High prices of homes may lead to higher consumer spending which is a source of income to the US economy. New home constructions lead to openings of job prospects for people involved in it. The new home sales in 11 months in the year 2012 were 338,000 and the amount for the same period in 2011 was 282,000. So, it has acted as a positive factor for US economy.
As per the experts, there are more signs of betterment of the US economy. The presidential election and the fiscal cliff have lead to a downfall in US economy. Although much has been talked about the degradation of the US economy it is considered by experts that the actual fundamentals of the US economy are far better than what people think and realize. Though the cost of living has risen, it is expected to come to a normal level that common man can sustain.
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