The Rising Prices Essay is available here with outlines, quotations, and impacts of rising prices also. This essay can be used as the base of general knowledge or current affairs. The students of primary, elementary, secondary, inter, and bachelor levels can learn this Rising Prices Essay. Here we have provided all the related details regarding the Rising Prices Essay as an introduction, outlines, the impacts of rising prices on the economy of a country, steps to check rising prices, and also methods to low down rising prices also.
Rising Prices Essay Outline
- Introduction. Persistently rising prices are symptomatic of an ailing economy. They cause great hardship to the masses.
- The nature of inflation. Inflation is a self-accelerating process,
- The ill-effects of rising prices. (a) Fixed-income HD groups suffer the most. (b) investment is diverted to non-productive assets. (c) Exports get a setback,
- The causes of inflation. (a) Wrong planning; (b) deficit financing; (c) unsound taxation; (d) black money; (e) smuggling; (f) lack of consumer resistance; (g) steep rise in population; (h) slow increase in agricultural and industrial production; (i) faulty distribution and marketing system; (j) increase in the price of oil in the international market.
Impacts of Rising Prices: Rising prices can have a number of negative impacts on an economy. Some of the most common impacts include: (a) Reduced purchasing power (b) Increased poverty (c) Inflation.
- Steps to Control Rising Prices: There are a number of steps that can be taken to control rising prices. Some of the most common steps include: (a) Increase supply (b) Reduce demand (c) Use monetary policy.
- Steps to check rising prices. The government has already initiated some steps, but they should be strictly imposed. Major steps are: (a) accelerating production; (b) curbs on money supply; (c) effective distribution system; (d) public support to keep an eye on erring businessmen; (e) social awareness; (f) a suitable policy for the control of the population. Rising prices are causing great concern to Pakistani economists at the present moment. It is true that prices can never remain stationary. A certain amount of fluctuation is inherent in the very nature of prices. In a developing economy, they usually display an upward trend. But if prices keep rising persistently, they cause great hardship to the people. They spare neither the rich nor the poor, neither the producer nor the consumer. They make economic activities uncertain and unstable, causing great unrest in the minds of the people.
Rising Prices Essay with Outline and Quotations
What is Inflation or Rising Prices?
Inflation is a self-accelerating process. It is a phenomenon that feeds on itself and initiates a very vicious cycle. Rising prices drive people to demand increased wages and salaries. Since such demands are resisted in the beginning, they resort to pressure tactics like strikes and demonstrations.
But such tactics only decrease production and aggravate the situation. And if the demands are met, there is a fresh spurt in prices. All benefits accruing from additional income are neutralized. Then fresh demands are raised and this cycle goes on. Fixed-income groups like salaried people, wage-earners, and pensioners are the most helpless victims of inflation. As prices rise, their real income gets eroded. The additional dearness allowance that the government sanctions from time to time proves of no use to them because their purchasing power actually goes down. Inflation induces businessmen to invest their money in non-productive assets like gold and land whose real worth is not affected by rising prices. High prices also adversely affect the exports of the country and distort the balance of foreign trade.
Factors Behind The Rising Prices
Numerous factors can be cited to explain the price rise in Pakistan.
- First, our economic planning has suffered from serious drawbacks right from the beginning. During the various Five-years plans, while the public expenditure persistently increased, the production targets were never realized. This forced the Government to resort to deficit financing. There was a rapid increase in the money supply without a corresponding increase in production. The resulting imbalance inevitably led to inflation.
- The taxation policy of the government has also contributed to the price rise.
- A sound policy of direct taxes would not only have yielded higher revenue but also have enabled the government to give relief in indirect taxes, which invariably leads to inflation.
- The defective tax structure has encouraged tax evasion and led to the accumulation of black money. This is an example of evil multiplying evil.
- The parallel economy in our country that thrives on black money and smuggling has always encouraged a rise in prices.
- Slow increase in agricultural and industrial production, faulty distribution and marketing systems, and an unprecedented hike in oil prices in the international market can be cited as some other important factors that have aggravated the situation.
Our agriculture has been rather slow to respond to innovations. The industry has been faced with a shortage of inputs like coal, power, and raw materials. But even though the things produced are not properly distributed, the majority of Pakistanis have no community consciousness. There is no organized consumer resistance to price rises. Instead, our masses get scared by the rumors of scarcities and tend to hoard as much as they can. This further intensifies the crisis. Pakistanis also believe in ostentatious living. They indulge in wasteful expenditure that directly affects the prices.
Government Responsibility Against Rising Prices Problem
Our government is quite conscious of the magnitude and implications of the problem. It has already initiated a number of steps to check inflationary tendencies. What we now need is strict enforcement of these steps. Apart from accelerating growth and imposing curbs on the money supply, we need an effective distribution system. We also need the support of social workers and other public-minded citizens to keep a watch on the unethical practices of shopkeepers. But nothing can mitigate the situation unless the growth of our population is checked.
Rising Prices Essay of 100/250 Words
A multitude of factors contribute to the phenomenon of rising prices. Deficit financing arises when public expenditure surpasses production targets, resulting in an imbalance between money supply and actual output. Flawed taxation policies, including insufficient direct taxes and widespread tax evasion, further exacerbate the situation. The existence of a parallel economy fueled by black money and smuggling acts as another catalyst for inflation. Inadequate agricultural and industrial production, flawed distribution systems, and external factors such as soaring oil prices all contribute to the complex web of causes behind rising prices.
The impacts of rising prices are far-reaching, affecting individuals and the overall economy. Fixed-income groups, including salaried individuals, wage-earners, and pensioners, bear the brunt of inflation as their real income diminishes. Furthermore, increasing prices hinder export competitiveness and disrupt the balance of foreign trade. Inflation erodes purchasing power, fosters hoarding behaviors, and undermines social stability, posing significant challenges to societal well-being.
Addressing rising prices necessitates the implementation of effective measures. Governments should prioritize accelerating economic growth and adopting stringent monetary policies to regulate the money supply. Developing sound taxation policies that emphasize direct taxes and combat tax evasion can provide a more stable revenue base. Encouraging ethical business practices, combating the parallel economy, and investing in agricultural and industrial development are vital steps toward mitigating the issue. Strengthening distribution systems, fostering consumer awareness, and implementing population control measures also contribute to the broader solution.
Rising prices present formidable challenges for individuals and economies alike. By understanding the root causes and implementing comprehensive remedies, governments can strive to stabilize prices, promote equitable economic growth, and enhance the overall well-being of their citizens.
Rising Prices Essay of 500 Words For Matric/Inter Classes
The causes contributing to the surge in prices are diverse and interrelated. Notably, a significant factor is the imbalance between public expenditure and production targets, leading to deficit financing. Flawed taxation policies, including inadequate implementation of direct taxes and prevalent tax evasion, further exacerbate the problem. The existence of a parallel economy driven by black money and smuggling intensifies the inflationary pressures. Additionally, insufficient agricultural and industrial production, flawed distribution systems, and external influences like surging oil prices all contribute to the upward trajectory of prices.
The impacts of rising prices permeate various aspects of society and the economy. Fixed-income groups, encompassing salaried individuals, wage-earners, and pensioners, experience the harshest consequences as their real income diminishes. Inflation impedes export competitiveness, disrupts the balance of foreign trade, and casts a shadow on overall economic stability. Moreover, the erosion of purchasing power due to inflation results in reduced living standards and heightened economic hardships for the general population. Socially, inflation fosters hoarding behaviors, fuels social unrest, and poses a threat to social stability.
Addressing rising prices necessitates a comprehensive and concerted effort. Governments should prioritize policies aimed at stimulating economic growth while implementing stringent monetary measures to regulate the money supply effectively. Revising taxation policies to prioritize direct taxes and actively combating tax evasion can provide a more stable revenue base. Encouraging ethical business practices, intensifying efforts to curb the parallel economy and smuggling, and channeling investments into agricultural and industrial development are pivotal steps in combating inflation. Strengthening distribution systems, promoting consumer awareness, and implementing measures to control population growth also play a crucial role in mitigating the issue.
The challenges posed by rising prices extend beyond individuals to impact overall economic stability and living standards. By comprehending the root causes and adopting comprehensive remedies, governments can strive to stabilize prices, foster equitable economic growth, and enhance the well-being of their citizens. Effectively addressing rising prices necessitates a multifaceted approach encompassing monetary measures, taxation reforms, strategic investments in key sectors, and awareness campaigns to combat inflation with efficiency.
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