Florida Economics 101
Many Floridians have grumbled about soaring prices. The complaints are different than the rosy stories they hear of a strong economy. Economics Professor Dave Denslow gives an excellent explanation on why Florida consumers feel strained.
Denslow said prices are falling for items like clothing and electronics, but the price of necessities like food and housing continues to climb.
"The pricing of (flat-panel) TVs is going down, but the price of gas is going up," Denslow said. "The increase in items we perceive as being necessary is what's going to be more salient in people's minds."
Plus, Denslow said, prices are increasing more in Florida than elsewhere in the country because of the booming housing market and because of hurricane-spurred increases in homeowners insurance.
Florida is getting more expensive to live in. A St. Petersburg Times article notes the state is progressively becoming too expensive for teachers, nurses, and police officers. These workers are essential for a community. Pinellas County is mulling over the idea of having teachers live in an old school. I'm not making this up.
Key West became so overpriced that no low wage workers could be found. Homeless people then feel those jobs. Much to the displeasure of Key West residents. No community can make it without a working class.
The bright news is now is a good time to buy that home entertainment center you always wanted.