If the value of the dollar has gone down, then why hasn't the cost of living?
2007-11-04 06:26:19 · 6 answers · asked by Mike M. 7 in Entertainment & Music ➔ Polls & Surveys
If the value of a dollar goes down the price of goods goes up because the dollar is now worth less which you now need more money to buy something. The dollar is worth less because as the US government needs more money b/c they are in debt, so they keep printing money which in turn makes the dollar worth less. It's like if they make a car and decide there should only be 10 cars ever made. That makes the car price go up, but when they decide to make the car for everybody the price goes down because now everyone has one and its no longer consitered to be rare.
2007-11-04 06:30:28 · answer #1 · answered by Dr. Nick 6 · 1⤊ 0⤋
They are inversely related. When the dollar goes down you need more of them to buy the same item. Therefore the cost of living goes up.
2007-11-04 14:31:10 · answer #2 · answered by Dusie 6 · 0⤊ 0⤋
Thats the life of money goes up and down..while the living or lifestyle is still the same
2007-11-04 14:30:23 · answer #3 · answered by sweetie29 6 · 1⤊ 0⤋
Because the minimum wage went up!
2007-11-04 14:30:16 · answer #4 · answered by Anonymous · 3⤊ 0⤋
It has in the big cities.
2007-11-04 14:32:15 · answer #5 · answered by Judas Rabbi 7 · 1⤊ 0⤋
well the politicians have to get rich some how
2007-11-04 14:31:38 · answer #6 · answered by crazi8red 6 · 0⤊ 0⤋