I have been noticing in past years, the affordability of normal people has crossed the border. In a positive sense, I can say it is good that people can afford so many things in their everyday life. For example, Organic Food, which is supposed to be more expensive as compared to non-Organic food. I am surprised that people with a minimal wage can afford Organic food and products.
Organic Beets in a farm (California) ---->While surfing in net I stumbled upon so many products with un-believably low prices. We cannot always blame China for the low cost products. So many American companies are facing tremendous competition, reducing the cost of their products, and offering deals package without making usual profit. The whole thing is just to enroll them in to the racetrack.
In India, the salary hike for an average employee was 50% more than the usual salary For example, an IT Engineer with 3-year experience was getting double than what it supposed to be and on top of that, many benefit packages। Even though the inflation is high, the affordability was crossing the border due to much higher wage inflation। Past 3 to 4 years India was a heaven for credit card companies introducing their plan and product. They even used to offer money to whoever just has a JOB. The reaction was this; The People in India suddenly thought that they are in a Global Economy & it is going to stay forever. So they started spending beyond the limits (off course who will not!) with zero savings. The price hike for Apartments and homes has been 70% from 2005 to now. Everybody thought that they could get easy money by flipping properties left and right.
Part 2 of this view is coming…
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