There is an interesting element to observe about the rise in prices over the past 15-30 years.
The three components of the cost of
living index that have risen, while the rest have fallen are: health
care, education and housing. All three have one thing in common.
All three areas are domestic. They are not susceptible to the main element that has reduced the prices of everything else: international competition. We can't make any of the three more efficient or more productive or lower costs because they are domestic, protected by the absence of outsourcing, protected in many cases by unions and in the case of housing and healthcare by government regulation. Housing codes are rigid outmoded and make sure innovation is stiffled. Healthcare is driven by health insurance which is regulated on a state by state basis, just like banking was 20 years ago.
While gasoline is high right now it will most certainly go up AND down.
When are we going to realize that we are hurting ourselves with policies that protect education, healthcare and housing?