Question

Has the reduction of mobility due to the COVID-19 pandemic increased or reduced the cost of living?

According to The New Geography of Jobs, Americans have historically been mobile, continually seeking new opportunities to improve their lives. The COVID-19 pandemic has caused people to remain indoors, and even some States have prevented unnecessary movement of people from one place to another. It is a huge change for many Americans who depend on constant mobility for their economic survival. As such, with reduced mobility, one wonders, has the cost of living increased or reduced? On one hand, less movement means that less spending in terms of relocation and money spent to travel and buy other resources needed. On the other hand, it has reduced opportunities for earning a living. While the government and corporations are aware of the economic impacts of the pandemic, it is essential to know whether people's cost of living is higher as now people are less likely to spend on unnecessary items.

Answer 1

The reduction in mobility due to COVID-19 have definitely Reduced the cost of living​. This can be understood by the following points –

• The reduction in mobility would reduce to price spends on travelling (in the form of renting a vehicle, purchasing fuel, maintenance cost of vehicle).
• The reduction in mobility reduced the money spends on various resources that are alocated away from their residential areas.
• The reduction in mobility have reduced the money spends on various leisure events like visiting cinemas, theatres, tourist places restaurants etc.

On the other, the Reduction in mobility may Increases the Net/Effective cost of living because the people could not earn money because of no Economic activity done by them which totally depends on mobility.