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Factors Responsible ForHigh Cost Of Living

The high cost of living is forced into the lives of the people by increasing the prices of the essential commodities. These are specifically done by certain people.  The prices of basic needs even increase when people never diversify the usage of basic commodities. Usage of a single commodity will increase the price of the goods.  The government has to take action by reducing the production cost of the goods.  Politicians even have their hand in increasing the prices and taxes which in turn are used for projects. The politicians claim that these are done by them. Politicians are responsible for regulating the cost of living due to poor police and failed systems and corruption. Hike in the prices of the goods leads to inflation People who are not aware of the cost of living can get better knowledge through /.

Rise in cost of living: The rise in the cost of living is mainly due to the rise in prices of the essential commodities and rents of the houses. Rise in rental fares is one of the main reasons for the cost of living apart from the increase in the cost of basic needs.  The rents have increased rapidly in the metropolitan cities, and in the semi-urban areas as well. The rents are affordable for all and purely depends on the income earned.  When the wages are stable and the rents and cost of the goods increases it will become hard for the people to lead a normal life. They have to spend too much money even for the essential needs and rents.

Other factors:  There are other factors that contribute to the rise in the cost of living. The main factor is the politicians and their policies. The politicians simply hike the prices and the cost of production in order to receive taxes. They generally do this when there is a need to construct dams or other projects. They spend the money collected from people and claim that all the projects are done by them. The policies are poor, and the government will never take action against the rise in the prices.

Essential commodities: The situation of hike in prices arise only when there is no supply as per demand. This is clearly witnessed when people consume the same goods which are high in demand instead of diversifying the goods.  People have to consume all type of commodities to avoid the demand created for a particular product or good. This will help to reduce the demand for the particular good which will reduce the demand thereby reducing the price. The cost of living can be reduced, and people can afford the essential needs with their wages earned.

Increase in wages: The increase in wages of labor can also increase the price of the products.  The labor who are involved in the various production process may demand their hike in the wages. This will, in turn, lead to an increase in the price of the products.

These are some of the factors that are associated with the cost of living. Based on the factors the difference will be seen in the cost of living People have to understand the basics of the cost of living in order to avoid spending too much money on basic needs.