Carragher also admits the emergence of Manchester City will make life even more difficult in the future.
He told the Daily Mail: "It's not just about us. You have to pay tribute to others teams. Alex Ferguson taking over Manchester United has to be a factor. He's so good at his job.
"Other teams have probably had a better overall transfer record and then there is Abramovich.
"I've got great respect for those Chelsea lads and John Terry and Frank Lampard are top, top players. But before Abramovich came, they were in a similar boat to us, just picking up cup competitions but never really threatening in the League. It was always Arsenal and Manchester United. But Abramovich took them up to a different level.
"People criticise Wenger but before, you only had to beat one team with more money. Now you have to get the better of two, even three.
"You used to be able to get the better of one if they had an offseason but for two to get it wrong with their signings and poor form, is not going to happen.
"The Manchester City situation is going to make things more complicated."