More money in the system will cause inflation, but given the free market it will be equally distributed around all income brackets so their will be net gains at the low end and net losses at the high end. Sure, your car manufacturer can raise their car prices, but their competitors won't. People might also upgrade a bit in their lifestyle because they can afford to...we don't drive around in one lakh cars for a reason! Universities might increase services to get more of the paid pie, but it's not lie they exist without competition either (moocs....).
Tangentially, but I'm always thrown by the Indian counting system for large numbers (lakh, crore, etc). Does anyone else use separators at other than the 10^3 used in the Arabic system? I know in Japanese/Chinese it is 10^4 in native language, but when they write numbers in Arabic form it tends to be in the 10^3 format.
"Sure, your car manufacturer can raise their car prices, but their competitors won't."
LOL see housing prices 2000-2007-ish
Or education price and medical prices in the USA for a couple generations. "Oh, you say your health/kids education is priceless, well guess what we're about to charge"
Free market. Housing prices didn't go up universally. Most people were insulated from health care costs by insurance. Education was still affordable, even if we couldn't put ourselves throu school like we did in the 90s.
> Education was still affordable, even if we couldn't put ourselves throu school like we did in the 90s.
Um. Education debt is now the single largest source of debt in the country, and it's rapidly expanding. A sector in which cumulative debt is consistently expanding is by definition "not affordable". In the last decade, prices at schools in my area have quintupled. I dare anyone to say that the value of the degree purchased has kept equivalent pace.
Who sets the interest rates, which set the house prices?
"Housing prices didn't go up universally."
Where?
The .gov sets the interest rate. The median joe6pack WILL live in the median joe6pack house. Therefore joe6pack's fixed (declining) income expendable on the mortgage, sets both joe6pack's payment and his standard of living.
