High Cost of Living
Janira Sanchez
Professor Bruno
Microeconomics
May 5, 2011 High Cost of Living A rise in prices, economists say, is a sigh of development and prosperity. But during the last two decades, prices of almost all the essential commodities have been increasing at an alarming rate. These soaring prices have caused great unrest and frustration among the people. All the more, the soaring prices have become a big threat and an open challenge to the government It has shaken the faith of the people in the government. There is no let-up in the situation. Life has become very hard. Also things of dairy use are sometimes not available in the market. The prices of petrol, cooking gas, kerosene oil and several other items of daily use are increasing every year. Also the railway fares, air fares and bus and taxi charges also increasing regularly. The rich make a display of their wealth while the poor find it difficult to make both their ends meet. Life has lost its charm for the average bread-winner. The indiscriminate rise in prices of essential commodities has left many a people tense and helpless. No one can foresee what is in store for the common people. There are many causes of the unprecedented rise in prices. Inflation, black marketing, hoarding, faulty credit system, over population, and improper system of distribution arc some of the major causes of hike in prices. The standard of living of the people has improved. People need more things than they needed earlier. This increasing demand leads to hike in prices. Sometimes, natural factors like flood and drought also contribute to rise in prices. Production of food is not in proportion with the increase in population.. With the breaking of joint-family system, the cost of living has gone up. The purchasing power of the rupee is continuously calling. It is now being increasingly felt that large scale corruption by some political leaders in power and some senior officers in the government is also the
Professor Bruno
Microeconomics
May 5, 2011 High Cost of Living A rise in prices, economists say, is a sigh of development and prosperity. But during the last two decades, prices of almost all the essential commodities have been increasing at an alarming rate. These soaring prices have caused great unrest and frustration among the people. All the more, the soaring prices have become a big threat and an open challenge to the government It has shaken the faith of the people in the government. There is no let-up in the situation. Life has become very hard. Also things of dairy use are sometimes not available in the market. The prices of petrol, cooking gas, kerosene oil and several other items of daily use are increasing every year. Also the railway fares, air fares and bus and taxi charges also increasing regularly. The rich make a display of their wealth while the poor find it difficult to make both their ends meet. Life has lost its charm for the average bread-winner. The indiscriminate rise in prices of essential commodities has left many a people tense and helpless. No one can foresee what is in store for the common people. There are many causes of the unprecedented rise in prices. Inflation, black marketing, hoarding, faulty credit system, over population, and improper system of distribution arc some of the major causes of hike in prices. The standard of living of the people has improved. People need more things than they needed earlier. This increasing demand leads to hike in prices. Sometimes, natural factors like flood and drought also contribute to rise in prices. Production of food is not in proportion with the increase in population.. With the breaking of joint-family system, the cost of living has gone up. The purchasing power of the rupee is continuously calling. It is now being increasingly felt that large scale corruption by some political leaders in power and some senior officers in the government is also the
References: www.nationalreview.com/.../are-sky-high-gas-prices-good-victor-davis-hanson www.fao.org/newsroom/en/news/2008/1000845/index.html