I'll roll with CoL.
I'd never seen this thread before today.
I really just wanted to note another fact of Cost of Living, though. It doesn't just alter the price of something (rent, coffee, cigarettes, etc.), but it drastically changes salary as well.
For instance, with my current qualifications, if I were to get a job in Raleigh, NC I would make about $58k. Alternatively, if I had the same job in Alexandria, VA or the DC Metro area, I would make anywhere from $90-115k. Rent for me here in NC is about $950 for a two bedroom, on bath at 1100 square feet. The same apartment in Alexandria would cost $1800-2000.
Stay with me here.
If I make significantly more in Virginia, I can afford to live there. If I make significantly less in Cairo, Illinois I can still afford to live there. But there should be an ever-changing ratio for each area.
Cost of living isn't solely adjusted for how nice a place is. It's really to keep places from underpopulation or overpopulation. I don't think the approach they're using works, though. If you increase income because of increased rent and other necessities, you get Cost of Living. If you can see the closed interaction, you can understand that it won't fix an overpopulation problem. More people will still go to the metro areas, make more money (not exactly at a 1:1 income to cost ratio [but not necessarily less than a rural town]), pay higher bills, but have all of the advantages of living in or near a city. Granted, there are a lot of disadvantages to be had: daily commutes, pollution, crosswalks, rush hour, et al.
(I'm jumping all over the place on this one...)
So a fiscally responsible person may be well-off in a big city (or area with a higher Cost of Living), while an irresponsible person might be broke in a township (or area with a lower Cost of Living). It's a two-edged sword, really.
If you're trying to standardise costs, though (e.g., every 12 ounce cup of coffee, regardless of where it was purchased) has a value of $1.00, it just won't work. Part of all of it is the industry of the given area. It's more expensive to ship coffee to Wisconsin than it is to send it to Montego Bay, for example.
