By Sasha Agapiev
Esteemed Economic Contributor
Originally published here.
Inflation is happening, and most people don’t seem to mind yet, especially those who claim that there isn’t any,
Earlier this week, the generous Federal Reserve declared that zero-percent interest wouldn’t be going away any time soon. Since there is obviously no bubble and therefore no reason to stop nonsensical lending and spending. As always, all is well. Well, for some, at least.
If you make $500,000 a year, then rent prices going up from $2,000 to $2,500 won’t bother you. But for those who receive $50,000 salary, this five hundred dollar increase makes all the difference.
In Silicon Valley, all residents, both poor and unjustifiably rich, are beginning to feel the effects of the rogue price increases. Teachers, who earn somewhere around $60,000 every year, can’t afford to live within the city and near the local schools. Those who haven’t left already are finding new ways to deal with the situation. One resident came up with the idea of renting out converted shipping containers that were modified to resemble normal houses. You would think that the living costs for such extravagant residences are through the roof. Well, you would be right, because the monthly rental fee for a shipping container in San Francisco is $1,000.
We are living in an age where lower-middle class citizens in American cities can’t afford to live normal lives, and soon, they won’t be able to live lives of any kind. It’s just too expensive, and what makes the whole matter worse is that there is no logical reason for prices to be this high.
Meanwhile, life is just getting better and better for those who can afford to enjoy themselves. While the majority of American civilians struggle to get by, even while living inside shipping containers, the disproportionately rich are sending luxury car sales to levels above those of regular car sales. (If you don’t believe me, click here).
Here’s a fun fact:
This year, an apartment was put on sale in downtown New York City. I know that this happens a lot, but this was no ordinary apartment, as it is had an asking price of $95 million. Don’t be too shocked, I heard it has a pretty nice view.
Many people have been saying that the government is purposefully increasing prices to benefit the rich and make everyone else’s life miserable. This may sound like it make sense at first, but it really doesn’t. It’s ridiculous. If prices continue moving in an upward direction, workers will slowly realize that there is reason for them to live here anymore and will logically start emigrating. Right now, life is great for rich people because they can enjoy while poor people do dirty work for them. When there are no more plumbers around to fix their bathroom sinks, they will finally realize that something isn’t right, but then it will be too late.
So, this leaves us with only two logical solutions:
Either raise wages or lower prices.
If we continue ignoring the obvious price crisis, then citizens will, slowly, begin to notice the absurdity and one day, they will decide that they’ve had enough and they’ll leave. Or go on strike. Or worse…
I’ve said it many times before, and I’m going to say it again. This can’t last. Something has got to give, or the entire system will collapse on itself. If you are still wondering why I constantly say that a stock crash is coming or that a downfall is imminent, it’s because of graphs like these: