I was watching a news where the news anchor was mentioning that people are fleeing New Zealand because of increasing cost of living. But it is not the case with only few countries it is happening with all the countries.
Like UK, New Zealand, India etc. The cost of living is increasing rapidly and thus it is decreasing the savings altogether.
I know someone who has started a business 4 months back and thus he had to shut off the business after he had a loss because people have started spending lot less on extra items.
I am talking about lower and middle class. Upper middle and upper class always have that discretionary money which they will always spent. But most of the buyers are from lower or lower middle class and if they stop buying much then it's a problem.
Similarly with the recession threat looming, people are becoming extra cautious. Even though with cost of living increasing rapidly whatever is left, they are trying to safeguard that money so that they don't have to get into the debt trap.
If I talk about India, recently one school has increased it's fees by over 50% and as it might become a trend will be a very bad trend. Now thing about it, if the education prices will increase so much how people can afford the quality education.
And on top of that essentials prices are increasing rapidly too. Like the prices of all the vegetables in my areas has increased 40% in last one year and thus this is not gonna end soon. People are spending 90% of their income in essential items only and whatever is left either spend on leisure or might be saved.
And this is mainly because of the mismanagement of money when there was an abundance. More printing of money actually contributed to this mess and this mess has just started mind it.
