Rising Prices Essay with Outline for Matric, FA, FSC, 2nd Year, BA and BSC (Price Hike)
Here is an essay on Inflation with Quotations and Outline for students. The same essay could be written under the title Essya on Price Hike, Essay on Inflation, Essay on Rising of Prices and Essay on Increasing Prices. If you have essay content and you need only quotations, go here. For more Essays with Quotations visit this page. In this essay, we will discuss the Reasons of inflation and will end up with the solutions. Some other essays are also available here.
Price Hike or Inflation Essay with Quotations
“Inflation makes the wealthiest people richer and the masses poorer.” – (James Cook)
Inflation means a 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 an 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 the economy. “Demand-pull” inflation is because of aggregate in demand of a commodity. “Cost-Push Inflation” occurs when the cost of production increases.
“Inflation is taxation without legislation.” – (Milton Friedman)
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 underdeveloped or developing countries. It badly affects the living standard of the people. It increases poverty and decreases purchasing power. Inflation creeps slowly into the 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 the 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 believe that once prices increase, they never decrease. It is true to some extent. However, we can minimize the effects of inflation by concentrating efforts. Inflation can b controlled by the long term and short term sound economic planning. Market competition can bring about reduction in inflation. The 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 the 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 swill. They do so because there is no check and balance. There is nobody to enforce the law and evaluate the prices at which things are sold.
Inflation can be viewed as an international phenomenon. Only should planning by the Government can avert it. Inflation is 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 society.
The government should take adequate measures to control this social evil.
“Production is the only answer to inflation.” – (Chester Bowles)
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Essay on Rising of Prices | Inflation Essay with Outline for Class 10, Class 12 and Graduation
- Introduction
- The problem of inflation in Pakistan
- Effect of rising prices on the life of common man
- Reasons behind the inflation
- Solutions
The prices of necessities of life are rising constantly. They are posing a serious problem for everybody in the country. The problem of rising prices has become a universal problem. This problem assumes an acute term in developing countries like Pakistan. The majority of people in our country belong to the low-income group. Usually, they have very meager sources of income. Very often the income of people is fixed. Therefore, they are hard hit by the high prices of essential goods which register a rise every week and every month. The result is that the standard of living of poor people is dwindling day by day.
Inflation has an adverse effect on different sections of society. Most of the people have not sufficient means to buy the necessities of life. They are compelled to use unfair means to have them. In this way, society is troubled by pick-pockets, thieves and robbers etc. Those government servants who cannot make both ends meet become corrupt. They abuse their powers and accept the bribe. In this way, they promote injustice and cruelty in the national life.
Rising prices also affect national life in the economic field. The businessmen think of adulteration black marketing and other methods to maximize their profits. Since the prices of goods are beyond the reach of common man, the standard of living goes on falling gradually.
There are many factors which cause a rise in prices.
First, the most important of these is the increase in population. The population of a country is increasing at a rapid rate. But the economic resources do not increase at the same rate. It results in inflation.
Second, if the demand is higher than the supply, the goods will be naturally sold at higher prices. Sometimes the government imposes higher taxes on certain commodities so that their prices go up. The wrong policies of government often lead to hoarding, smuggling and black marketing of the essential goods.
Third, if a businessman has a monopoly in the production and sale of a certain commodity, he can raise its price as and when he desires. In developing countries like Pakistan, developmental activities usually cause inflation. The funds and the loans that are acquired from foreign countries are invested in different projects. They increase the circulation of money in the country and cause inflation.
Our first duty should be to check the birth rate. We should make vigorous propaganda in favour of family planning. Second, the government should not impose so many taxes, levies, duties or surcharges on those commodities which are used by the common man and which are considered necessary for human life.
After this essay on Inflation, go for Poverty in Pakistan essay.
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