So we’ve read about saving money on the gas for your car, (view the article) but what about the car itself? Now unveiled is the Tato Nano, a car that could let even the poorest people become car owners with its $2500 price tag. Who says cars have to cost $25,000, why not drop a zero and have cars that cost $2500?

Technology gets cheaper
This $2500 car, the Tata Nano, should be no surprise. As technology increases, the price of all of our current technology decreases. A VHS recorder used to cost $695. A 17 inch black and white tv $170. These items used to mean wealth and prosperity. Now essentially everyone can own a dvd player and a colored tv for next to nothing. The Tata Nano is just the next evolution in cars, the first step towards using technology that makes items cheaper and more efficient.

Resources get costly
Though technology gets cheaper, as mentioned with the Tata Nano, scarcer resources like food will not lower in price. As poorer countries start to increase in wealth, we’ll start to notice an increase in the price of food and resources. Already the price of beer is starting to rise, especially in Germany, since the Chinese have been importing mass quantities of German beer, as the number of Chinese in poverty is becoming less and less. Now, more than ever before the Chinese have more money to spend on luxury items like imported German beer.