If most people can not even make 40 grand a year then why?

Question

is food and housing and health care so expensive?

Answer 1

It's all part of supply and demand. When the housing supply is low and more people need housing the prices go up. This is why the no interest home loans have become so attractive, it's the only way most young people can afford to get into the housing market in the first place. But they may find themselves in serious trouble should the equity in their home not build, or when they start paying the full cost of the loan as the low payment doesn't last the life of the loan.

Health care is in demand and so it's expensive. Training for doctors, nurses and other medical care fields are expensive. Not to mention as real estate goes up the cost of offices, etc goes up. Medical liability insurance rates are sky high, not just for doctors but for hospitals, physicians assistants etc. All these high costs are passed onto the consumer. Then they have to make up for all the people who do not have the funds or insurance to pay for medical care or just don't pay. Couple that with the burden illegal aliens put on our health care system who often do not have the funds to pay for health care. It all adds up to higher costs for the rest of us.

Food will continue to go up in prices. Gas prices to bring the food in have been high, costing those bringing the food to market to pass this onto us. As more and more farm lands, etc get swallowed up by urban sprawl. or more struggling farmers are bought out by big business corporate type farms prices will continue to grow especially with so many people all needing food. And corproations trying to increase profits.

Wages have not caught up with the true cost of living increases which in most places have far exceeded the figures the government puts out. It seems to me with higher real estate prices, higher real estate taxes, gas prices, etc the cost of living is much higher than the 3.3% the government cited for this past year.

Answer 2

That's because the people that make the decisions for us are the one's making over 40 grand a year and proabably have no idea what it feels like get a 48 hour notice from pge or mow your own lawn, or rob peter to pay paul. They are o.k. with sending Billions of dollars to IRAQ yet they cringe at the thought of paying our citizens more money an hour to earn a decent wage and live happy. The other night While Bush spoke I about Vomited in my mouth. Healthcare that everyone can afford is promised at every single election and no one ever pulls through. I am single. Make a decent wage. Own my home. I didn't have healthcare until I was with my job for a year. The people I was assisting in my job did though. They had no job, food stamps, cell phone, cable, car, etc.

I had no health care. What's wrong with this picture?

'-)

Answer 3

I think its a temporary glitch in the system. The fact is housing costs are astronomical- they just went out of control in the past 5-10 years.

Banks are stuck with a huge number of non-performing loans, lots of families have lost their homes to foreclosure and/or just walked away from huge mortgage payments, refinance syndrome... Home values rise and people cash out, etc. It is a disastrous situation.... I agree- its an economic and social epidemic. I don't know the answer!

Answer 4

Well, a lot of people have health care added into their salaries, which bumps them well over $40k a year, not to mention other various benefits like 401k, vacation pay, sick days, etc.

Food isn't really that expensive. Housing has gone crazy, but thats just hte way the market works. People stop buying, prices go down. It totally sucks but, its the best system there is. Part of the reason prices have gone up is due to wages rising. They go hand in hand (you don't expect a raise to mean the company profits go down, right?).

Answer 5

It's the Reagonomics" shifting around. Many jobs that paid well (like computer techs, etc) have become temp jobs now, far lower pay, and not free insurance (usually can't afford it). These higher paying jobs are leaving the USA and moving to China, mexico to name a few. They are not saving money, instead paying the rich more and the real workers far less. China is well over 300 Billion dollars of american money going to them. So that's 300 Billions dollars worth of american jobs, tax, salary, etc. Our government goes to the highest bidder. It is (and will) be getting worse, until americans start impeaching (firing) officals in the office. Alot is pure greed.

Answer 6

Each industry adjusts the cost of its service or product in order to stay in business, support the owners, and show a profit.
No farmer can sell his produce below his operating costs because some people are not making enough money. He must run his business, others must earn more if they want more.
In other words one thing has nothing to do with the other.

Answer 7

I make less than $40K and I own a house and two cars, have health insurance, am raising a child, and can afford to by food and clothing. The problem is not the total amount of money you make per year, it's what you do with that money.

Answer 8

gas prices have a lot to do with it. How do you think your food gets delivered?? Its by trucks and other forms of transportation that use fuel. Gas prices affect everything....... My issue is that oil is below or at 50.00/barrel now. The last time we saw this price, gas was around 1.40/gallon. Someone is making $$, and the rest of us are paying for it.

Answer 9

http://costofwar.com/index.html