what determines the cost of living?

Question

and how is it measured

Answer 1

Cost of living is determined by basic supply and demand. The more people/the higher the population density, generally speaking, the higher the cost of living.

It varies by city to city, region to region and state by state. Generally, cost of living is calculated on costs of various and sometimes random items, like gas, t-bone steaks etc. Ususally insurance rates and housing are always included.

Of course there are other factors that contribute to higher housing prices. Los Angeles for instance, has grown physically about as big as it can get due to oceans, mountians, commute time and desert, so the land price goes up, and in turn, housing goes up.

Answer 2

that is a good question,because i don`t think realistic people are determining the cost of living at the moment.Going to the grocery store and seeing all prices go up and not the spending power of the consumer.economic annalists are not being very realistic when it comes to the cost of living.They need to go shopping with a minimal amount of income sometimes and see how it feels not to be able to buy little pleasing thinks like a pint of ice-cream for your kids.It should be measured by the creation of a equal ballance .Who ever is measuring it at the moment is not being reasistic

Answer 3

Something I have heard of called the consumer price index is a yearly cost rise of products and services. It is usally measured in percentages.

Answer 4

Ricky,

I have NO idea!

I'm an engineer and I recently used a recruiter from LS Doll to do a West Coast to East Coast recruitment for me. She wanted me to take a $40,000 paycut for a management position!

Mind you, she didn't look at any of my expenses to determine this.

You have to look at your own housing, commuting, gas, utilities, entertainment, etc. Don't let someone else do it for you.