Essay No. 01
Problems of Rising Prices
The problem of rising prices is the greatest economics problem in a country today. It is cutting the throats of millions today because millions of people find it hard to manage one square meal a day. All days work does not promise then sufficient to eat and drink.
Prices have doubled in the last five years and many things on daily use are now beyond the reach of common man. More and more things are going beyond the reach of common people with each passing day.
The reason is not for to seek. There is a craze for getting rich as quickly as possible. The industrialists, the manufactures and the middlemen seek the highest profits and have no soft corner for the poor consumer and purchases. Big industrial concerns have become economic empire and dictate their own terms to the common people.
The government is also to be blamed to some extent. It is constantly increasing taxes there by pushing prices astronomically. It has been resulting to deficit financing and printing currency notes by the tons. It has increased prices and the common men are praying for his needs through the nose. The rich are becoming richer and the poor are becoming poorer. This gap seems to be increasing each year.
The real answer to inflation lies in greater production and productivity. Industrial production can be increased by removing some problems like raw – material shortages, undue licensing restrictions against efficient large scale producers, and unreasonable labour problems are solved.
Prices are bound to increase in a developing economy and there can be no absolute price stability, as such. But limits should be defined. A modest increase in prices in not unhealthy for a developing economy like India.
Essay No. 2
The Problem of Rising – Prices
Problem of Rising- prices is the burning problem at present. Prices of all things have been rising very rapidly. They have gone up twenty times. Everybody complains that prices are increasing day by day. India is a developing country. In a developing country. Prices are bound to go up. With developing economy the prices go up. But the trouble starts when the income of the people does not match with rising prices. India I facing this problem.
There is no actual shortage of nay thing in the country. But there is shortage of honesty only. The businessmen create artificial shortage of foodgrains. So the prices go up day by day.
Our population is increasing very rapidly. Now our population is more than 80 crores. Food grains have not increased in proportion of increase in population.
The deficit financing in the plans is also responsible for the roaring prices. Much money is spent on some plans which do not seem to be useful producers say that there is a rise in the prices of raw materials. So there is an increase in the manufacturing cost.,
Some people say that the taxation policy is defective and needs change to bring the prices down. The government is making investments in the industries which will show the benefits after a long time. There is no proper adjustment between supply and demand. Some government officials are corrupt. They are quite indifferent towards the seriousness of the problem.
Anti Social elements like hoarders and black marketers never miss an opportunity to cash the situation. Political parties regardless of ideologies, have one common ideology- shedding crocodile tears for the pool to collect their respective votes. They take interest in blaming each other and politicizing a problem affecting every common citizen. They are not increased in solution of a problem otherwise they must be one in tackling the problem of price – rise.
The rising prices should be checked at once. The government should take drastic steps against hoarding and back- marketing . production should be increased. Distribution of national wealth should be made fair and effective. The government must take over the trade of important food grains such as wheat, rice and sugar. The circulation of back money must be controlled at all costs. The check on growing population should be brought under control. Deficit budgets should be discouraged. Sense of patriotism must be created by our leaders who should be far above corruption. Public should co- operate with the government. Our slogan must be “Down with Prices.”
If suggested steps are taken the prices will surely go down. Our government should punish the defaulters, hoarders and black marketers. In absence of any charging the maximum price in place of reasonable price to gain maximum profit.
Essay No. 03
Price rise is one of the most ticklish current problems. Whenever we go to make some purchases in the market, we learn to our great disappointment that the prices of most of the commodities have risen and sometimes quite exorbitantly.
There are several reasons for this steep rise in prices. One reason is the shortfall in production. This happens particularly when the country or a part of it is witnessed by floods or famine. Strikes result in fall in industrial production.
Sometimes, one feels baffled when one learns that there has been a bumper crop and still there is scarcity of essential commodities in the market. This usually happens due a number of reasons. One reason is the defective distribution system. Sometimes, there is over-production of some agricultural product in one State but it does not reach other States for lack of wagons, boxes, etc. It is generally seen there is surplus production of wheat in States like Punjab and Haryana but this surplus produce is not swiftly transferred to other States. Similarly, the bumper product of apples in Himachal Pradesh does not reach other States.
Another reason for the scarcity of commodities in the market even during times of profusion is the tendency of wholesalers and capitalists to hoard the products and create a scarcity in the market.
There are several other reasons for price rise. Some of such reasons are back market, corruption, faulty taxation system, wastage, expenditure on luxuries, bloated bureaucracy drawing heavy salaries, excessive profit charged by manufacturers on their products, etc.
In order to check price rise, effective steps should be taken and at the same time excessive circulation of money should also be checked. It should be ensured that imports are decreased and at the same time exports are increased.
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This article discusses the inflation, the current situation, the causes and the means to control inflation in India.
Inflation in India
Inflation refers to the rise in the price of goods and fall in the value of money. Inflation refers to the problem of rising prices.
The problem has been with us for a long time now. The trend of rising prices in India has, in time, aroused dismay, consternation and anger.
It has been witnessed that with the passage of time, the rich have become richer and the poor still poorer. In spite of a bad agricultural year, it is not scarcity that is troubling people so much as the continuing erosion of their purchasing power. Hence, we are nowhere near the goal of an egalitarian society which we had set out to achieve.
Also read:Problem of price rise in India.
The current rate of inflation is alarming. The rapidly increasing prices in India has been a topic of discussion at all levels during these days.
Economists and some other people have been attempting scientific analyses to:
- determine how far the prices have risen,
- why they have risen,
- by what methods they can be held in check, and
- how far those methods can be successfully.
While all this has been going on, people have been patiently suffering, and for all we know, will continue to suffer for a long time.
Causes of Inflation in India
In-spite of the fact that India has witnessed huge economic development in the past 10 years, yet we are not able to control inflation. It is sure that something has gone wrong somewhere. There are many reasons for Inflation in India:
- There has been a lack of a social awareness in general which has prevented the benefits of planned development from percolating to the lowest levels.
- There has been an increase in the cost of living.
- Lack of control and check over government spending.
- Hoarding of essential commodities by greedy traders.
- Inadequate mechanism to control and fix the prices of essential commodities in the marketplaces.
The benefits of government spending does not reach the common man. There are inadequate checks in the government-spending.
It would not, however, be correct to place the blame wholly at the door of the government or the trader. The consumer is no less to blame for the state of affairs. Some consumers allow themselves to be robbed for fear of a precarious supply position and consistently adverse price trends. Such practices not only deprive the country of much-needed resources but also serve as bad examples for those whose who cannot afford to pay such high prices.
How to control Inflation in India?
Inflation can be controlled by close collaboration and effort of both the government and consumer.
Higher Interest rates: Monetary policy can have an effect on inflation. At a time when a country witnesses high inflation rates, the Government often increases the interest rates. High interest rate is a mechanism to control inflation.
Suitable Distribution System: Inflation directly effects the life of the common people. In order to reduce the danger of runaway price increases in the future, it is very necessary that a suitable distribution system should be developed.
Proper Checks: There should be a system for proper checks to ensure that traders does not charge excess money for the commodities.
Control Hoarding: Some traders indulge in hoarding of goods. They create artificial demand for the goods and charge high prices for the goods. The government should ensure that such malpractices doesn’t exist in society.
Price Control: The prices of all the essential commodities of daily use , such as rice, wheat, potato, milk, etc should be fixed and controlled. And adequate measures should be taken to ensure smooth supply of these items.
Buy at Fair Price only: Some consumers allow the greedy trader to charge high prices for essential items. They pay very high prices for fear of inadequate supply in future. This practice should strictly discouraged.
Category: National Issues of India