7. Prescription Drugs:
The price of prescription drugs continues to rise at a meteoric rate. According to a 2010 AARP study, the average price of the most popular prescription drugs has increased 41.5% since 2004. This is significantly higher than the rate of inflation over the same period, at 13.3%. The pharmaceutical industry attributes the high prices to the ever-increasing cost of research and development. Analysts suggest that the prices are also increasing due to marketing efforts of companies trying to differentiate themselves in a crowded market. At the beginning of this month, the congressional budget office reported that medication costs were likely to rise as a result of the March health care bill.
Also Read: McDonald’s Price Hikes in China: Warning to U.S.?
8. Ground Beef:
While the price varies by state and quality, the average price of ground beef is either near or above all-time highs across the U.S. The rise in costs is largely due to an increase in corn prices, which has made cattle production more expensive. The high price of beef is going to have a major impact on restaurants which rely on inexpensive, mass-produced commercial-grade beef to maintain low prices. Fast food corporations, including Burger King, Wendy’s/Arby’s, and McDonalds, are being hit hard. McDonald’s recently announced it would raise prices on many of its more popular menu items in the coming months.
9. Checking Accounts:
According to Bankrate.com’s 2010 study, the cost to maintain a checking account in the U.S. is at an all-time high. Included in the new highs are overdraft fees, which have reached a record average of $30.47, and minimum required balances, which are up by more than 34% from just last year. The increased fees banks are charing their customers may be linked to a need for liquid capital. This doesn’t seem likely to affect consumer behavior much, as most of these costs, particularly charges from ATMs and overdraft fees, are avoidable.
10. The Most Expensive Porsche:
The American Economy is still recovering from the worst recessions in decades, but as long as the country maintains its business elite, producers of high-end luxury items will continue to outdo themselves. For example, Porsche just sold out of 500 of its limited edition 911 GT2 RS, 133 of these going to Americans. At a $329,000 retail price The GT2 RS is the most expensive of its make ever sold. Do not expect the car to hold this honor for long.
-Michael B. Sauter, Douglas A. McIntyre
