Yes. Taxes and regulations are a big driver of inflation.
These costs get imbedded in all prices.
California is one of the worst.
California can get away with taxes and regulations because people will put up with it and not leave. Some Californians got fancy Facebook Google Twitter jobs so why leave! That money trickles down to the whole population and public coffers. As long as people use Facebook Google Twitter then California will do well.
The other big factor is population growth relative to land available.
Huge influx of people into California without enough housing and infrastructure drives prices sky-high.
Overflow into Oregon, NV, AZ, WA coffee grunge, and Colorado Rocky Mountain High pot smokers. East coast is even worse.
Many deflated counties are losing population as many move to work in San Francisco, NY and other big inflated cities.
Often these have the best farmland and great universities such as Illinois and Purdue.
I drove to deflated Arkansas this week, a very beautiful state. In a small strip 20 miles long in Northwest Arkansas is headquarters for: Walmart, the world’s largest company by sales
Tyson foods, the world’s largest producer of beef, pork, chicken, JB Hunt one of the world’s larges trucking companies,
University of Arkansas – one of the best financed public colleges. They want to improve their rankings and have the money to hire top minds.
Many large upscale housing developments, shopping centers, museums, etc. Newer than Silicon Valley and more space so it looks better.
Growing faster so some growing pains, traffic jams, not everything matches up right. Irrational exuberance.
Half the signs in Spanish.
Deflation is not so bad in my opinion.
You get more for your money plus may be in a better physical environment with less pollution.
Just be careful of the people with deflated health, fried brains, on drugs, guns, gangs, crooks, etc.
Stay near the universities and upscale areas where people are hard working, lots of jobs, etc.
> On Dec 10, 2015, at 4:01 PM, Ron wrote:
> At first glance the high inflation areas appear to be mostly high tax states and enclaves within Colorado. Shipping costs to Alaska and Hawaii. With the glaring exception of food most commodities are in a deflationary mode worldwide. I suspect most inflation in those green areas is the result of high sales taxes, and business operating costs including taxes, and not the result of cost push demand inflation. Food historically is a low net profit business. I suspect within green areas there could be a negative correlation between high prices and money velocity as business is choked off due to high taxation. >
> On Wednesday, December 9, 2015 8:38 PM, joe wrote:
> Prices vary drastically depending on your location.
> One can choose to be inflated or deflated.
> You can pay a lot or easily pay double or triple or even 10 times as much. > And work much harder while getting deeper in debt
> And burning in heat and smog, dying of thirst in a drought, or freezing in Siberia exile. > It is a free country, the choice is yours.
> Good website that covers 100s of cities.
> The map provides a useful summary that agrees with what I have found in my travels mostly in green inflated counties. >
> http://www.infoplease.com/business/economy/cost-living-index-us-cities.html >