August 6th Update – Macroeconomics and the reality of monetary and fiscal policies; Why the U.S. enjoys a lower cost of living

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-A response to an email asking me if the relatively low house prices in most areas of the U.S. will persist.
-How the United States exports inflation and imports deflation. An explanation of this dynamic in action and how the U.S. trading partners are impacted.
-Why housing costs are so astronomical in the poorer nations. The numbers don’t lie; Americans have it easy when compared to the rest of the world (See how your city stacks up and try not to cry). The poorer the nation, the more costly housing becomes for the locals.
-Nothing is free. Social programs come with terrible, hidden costs
-Why grocery prices in the U.S. are much lower (with respect to local wages) than in virtually all other nations.
-An explanation of why the percentage of households that become rental dwellings will rise over time. Since many items cannot be imported, the growth in house prices and professional services reflect true monetary inflation. These will rise higher than wages over time. Property taxes rise higher and the costs of house services, which cannot be imported, escalate and make the prospect of home ownership more remote for a higher number of people. Tax policies punish owner-occupied real estate holders to the benefit of investment housing.

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