ESSAYS
1) INFLATION
OUTLINE:
1. What is inflation?
2. The intensity of the problem.
3. The effect of the inflation:
4. The alarming causes of the inflation:
a. Indiscriminate use of consumers’ goods.
b. Reckless buying of the luxuries.
c. Higher demand and the less supply.
d. Foreign investment and developmental activities.
e. Increase in population.
f. Rise of prices in international market.
5. Remedial measures taken to cope with the problem:
Fair and organized distribution of goods in the country.
UNO and world-agencies should also play their role.
6. Conclusion.
Inflation is caused in a country when the supply of money increases more as compared to the supply of goods of daily use. It means there is an increase in money and the prices of commodities. But there is no increase in the production of commodities of daily use.
Too much money, chasing too few things.
In the 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 incomes of people are taxed. 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 the people is dwindling day by day.
Rising prices also affect nation life in the economic field. The businessmen adopt 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. This develops a sense of deprivation among the poor strata and they indulge themselves in collecting wealth through unfair means.
There can be numerous reasons of inflation or rising prices: first, when people start the use of different thing in abundance, the prices of such things rise. The prices of such things certainly rise if their production does not increase according to the demand of the people.
Second, reckless buying of luxuries is another cause of inflation in the country. Some people indulge in indiscriminate buying of luxuries and feel pleasure in living beyond their means. This reckless purchase of goods of common use leads to rise in prices.
In developing countries like Pakistan, the 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, when people have more money in their pockets; they will be prepared to have more and better facilities of life and to money in their pockets; they will be prepared to have more and better facilities of life and to offer higher prices for them. All these economic forces join hands and create a serious problem for the common man and the government.
Fourth, the most important of these is the increase in population. If the population of a country increase at a rapid rate as compared with the increase in its means of production and economic development, the rise in prices becomes inevitable.
There are some ways or remedies for reducing inflation or the rising prices of the commodities of daily use: first, there should be a proper regular system for the distribution of these goods of daily use among the citizens throughout their entire country.
Second, the UNO and other world-agencies should do their level best to settle and remove disputes among different countries and nations. All the countries should cooperate with one another and work together to increase their production of the goods of daily use and keep their prices at a proper level. If there is peace in the world, all the countries of the world will also stop wasting their resources on production for war. In this way, there will be a maximum reduction in inflation or rising prices.
Finally, all the countries should take some suitable steps to check the increase in population. It is difficult to increase production of different goods of daily use as fast as the population is increasing.
Second the government should not impose so many taxes, duties or surcharges on the commodities which are used by the common man which are considered to be necessary for human life. Besides, it the most important duty of the government to keep vigilant eye on the production and sale of essential goods. Undue profit-making should not be allowed in any case.
To conclude, it is very essential to probe into main causes of inflation or rising prices and then to take some suitable steps, as pointed out above. The join efforts of all the countries can minimize inflation which is found in almost all the countries of world.
