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INFLATION
(PRICE HIKE)
"Money is power, freedom, a cushion, the root of all evil, the sum of blessings"
(Carl Sandburg)
Inflation means general increase in price or increase in the supply of money. Inflation is a broad, variable and complex term. Only economists can have its better comprehension from economic point of view. It is hard to understand its various kinds for a layman.
There is "Creeping Inflation". It is a healthy trend as it increases development. "Walking inflation" affects savings. "Running Inflation" is hard to control. It affects consumption and savings. It leads to economic recession "Galloping or Hyper Inflation" is disastrous and fatal to economy. "Demand-pull" inflation is because of aggregate in demand of a commodity. "Cost Push Inflation" occurs when cost of production increases.
Inflation is not an unexpected and unpredictable phenomenon. Its seeds are sown because of mismanagement; weak or low market knowledge, indifferent attitude towards economic indicators, weak administrative machinery, absence or lack of check and balance, bureaucratic manipulation, inadvertent boarding and strong association of the market leaders. Disturbance in demand and supply ratio is yet another factor.-
Inflation is a menace in the poor or under developed or developing countries. It badly affects life standard of the people. It increases poverty and decreases purchasing power. Inflation creeps slowly into economic system and assumes magnitude by creating an alarming situation. Inflation destroys or disturbs market balance badly.
World's richest investor Warren Buffet says,
"If you buy things you don't need, soon you will have to sell things you need"
Inflation increases unemployment and, as a result not only skilled but also unskilled workers are laid off. It creates future social problems. It permeates into our social fabric and disturbs everything. Anxiety and depression are the immediate outcomes of inflation. It eats up purchasing capacity of people. It belittles the efforts done by the bread earners to meet the growing needs of their families. Inflation gives rise to dishonesty and corruption.
"The safe -way to double your money is to fold it over once and put it in your pocket"
(Frank Hubbard)
There is a popular belief that once prices increase, they never decrease. It is true to some extent. However, we can minimize the effects of inflation by concentrated efforts. Inflation can be controlled by a long term and short term sound economic planning. Market competition can bring about reduction in inflation. Local industry should be promoted to reduce inflation. Accessible and cheaper goods can minimize the adverse effects of inflation. These can also provide people with alternatives. This may affect the standard of living but people are protected against adverse effects of inflation. Proper monitoring and regulatory control can help in reducing inflation. Retailers and hawkers sell things of daily use at their own will. They do so because there is no check and balance. There is nobody to enforce law and evaluate the prices at which things are sold.
Inflation can be viewed as an international phenomenon. Only sound planning by the Government can avert it. Inflation is a misery and people can be saved from this misery through mutual effort. To sum up, inflation, in any form, undermines the very foundations of a social set-up. It makes the rich richer and the poor poorer. It carries the social stigma that breeds dissatisfaction among all the factions of a society.
The government should take adequate measures to control this social evil.
I don't mind going back to daylight saving time. With inflation,
the hour will be the only thing I've saved all year.
(Victor Borge)
"Money is power, freedom, a cushion, the root of all evil, the sum of blessings"
(Carl Sandburg)
Inflation means general increase in price or increase in the supply of money. Inflation is a broad, variable and complex term. Only economists can have its better comprehension from economic point of view. It is hard to understand its various kinds for a layman.
There is "Creeping Inflation". It is a healthy trend as it increases development. "Walking inflation" affects savings. "Running Inflation" is hard to control. It affects consumption and savings. It leads to economic recession "Galloping or Hyper Inflation" is disastrous and fatal to economy. "Demand-pull" inflation is because of aggregate in demand of a commodity. "Cost Push Inflation" occurs when cost of production increases.
Inflation is not an unexpected and unpredictable phenomenon. Its seeds are sown because of mismanagement; weak or low market knowledge, indifferent attitude towards economic indicators, weak administrative machinery, absence or lack of check and balance, bureaucratic manipulation, inadvertent boarding and strong association of the market leaders. Disturbance in demand and supply ratio is yet another factor.-
Inflation is a menace in the poor or under developed or developing countries. It badly affects life standard of the people. It increases poverty and decreases purchasing power. Inflation creeps slowly into economic system and assumes magnitude by creating an alarming situation. Inflation destroys or disturbs market balance badly.
World's richest investor Warren Buffet says,
"If you buy things you don't need, soon you will have to sell things you need"
Inflation increases unemployment and, as a result not only skilled but also unskilled workers are laid off. It creates future social problems. It permeates into our social fabric and disturbs everything. Anxiety and depression are the immediate outcomes of inflation. It eats up purchasing capacity of people. It belittles the efforts done by the bread earners to meet the growing needs of their families. Inflation gives rise to dishonesty and corruption.
"The safe -way to double your money is to fold it over once and put it in your pocket"
(Frank Hubbard)
There is a popular belief that once prices increase, they never decrease. It is true to some extent. However, we can minimize the effects of inflation by concentrated efforts. Inflation can be controlled by a long term and short term sound economic planning. Market competition can bring about reduction in inflation. Local industry should be promoted to reduce inflation. Accessible and cheaper goods can minimize the adverse effects of inflation. These can also provide people with alternatives. This may affect the standard of living but people are protected against adverse effects of inflation. Proper monitoring and regulatory control can help in reducing inflation. Retailers and hawkers sell things of daily use at their own will. They do so because there is no check and balance. There is nobody to enforce law and evaluate the prices at which things are sold.
Inflation can be viewed as an international phenomenon. Only sound planning by the Government can avert it. Inflation is a misery and people can be saved from this misery through mutual effort. To sum up, inflation, in any form, undermines the very foundations of a social set-up. It makes the rich richer and the poor poorer. It carries the social stigma that breeds dissatisfaction among all the factions of a society.
The government should take adequate measures to control this social evil.
I don't mind going back to daylight saving time. With inflation,
the hour will be the only thing I've saved all year.
(Victor Borge)
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