why is cost of living so different between countries and even between cities of the same country?
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Cost is set based on one thing: the prices people are willing to buy/sell for.
You can sell 1lb potato’s for $100 but if no one wants it, your potato is worthless. You’ll either have to lower your price, hope someone buys it, or enjoy it yourself.
It just so happens the community that you live in think that 1lb potato cost $2. Perhaps in another community nearby, the cost is $4. The cost of 1lb potato in the US can range between $0.50 to $5.00, just depends on the community you’re in.
Sadly, the community in a different country, such as Switzerland thinks the cost is more than $5; but in places like Thailand it cost $0.02.
So cost of living is inclusive of food, lodging, transportation, work wages, etc. and all those prices are dependent on what the community is willing to pay for.
Most people think it’s the government, and to an extent they do play a role. But the people who buy/sell stuff out number the govt, so the people actually control the prices. It just seems like they don’t. (And by people, I mean quantity of people, but also the person with the most money).
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