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  • Category: Miscellaneous

    Will inflation ruin our lives?

    In the past one month, the cost of every single thing that we need for our day to day lives, has gone through the roof. There is nothing that comes cheap at all. The auto guys have increased their fares. The bus fares will soon go up.

    The prices of vegetables and fruits is not within our reach at all. Every single grocery will now become so costly, as transport costs have gone up so much. Yet, the Governments are doing nothing. It is strange that petrol prices are not being controlled at all.

    The upper middle classes and the other middle class people are deeply worried too. What will happen to our savings? What if we do not have sources of income? What will happen to senior citizens, who normally have no income after they are sixty five years old?e

    These are some questions that keep worrying each one of us. What is the way out?
  • #649383
    Why do we need to worry about our savings when inflation rises? When inflation rises, automatically interest rates will also rise. We cannot demand lower inflation, higher interest rates and higher GDP growth at the same time.
    It is true that Government is not doing anything to curb the petrol rates, but I suspect some inner meaning into it. At the present situation, State Governments are not accepting to bring petrol under GST. When petrol rates rise beyond certain limit, there will be pressure on State Governments also, which in turn will try to reduce their share in tax on petrol and finally at the time of elections, Central Government may bring petrol under GST by reducing excise duty.

  • #649396
    Inflation is not a new thing. In an underdeveloped and developing economy it is a natural thing to ocurr.

    There are many factors which lead to inflationary trends. One is supply and demand of commodities. Other is increasing money power especially in the hands of Govt servants whose salaries are revised time to time in the name of compensating inflation.

    Some private companies also compensate their employees like that, though not to the scale as in that of Govt.

    In fact a little bit of inflation is required for a healthy economy. It is an economic indicator also.

    As regards to affect of inflation on the public, those whose income is low and the poor class are adversely affected by it and can not manage their livelihood. This has been there for quite some time and will remain there till there is a general upliftment in the situation of poor people in the country.

    The middle class whose income is fixed and not increasing are also badly affected. In many families all the eligible members are forced to search jobs and are bringing home whatever minimum money they can in each month to make their ends meet.

    Knowledge is power.

  • #649402
    Yes there has been increase in the price of everything as the diesel and petrol are being revised every day and thus the transport cost has become whooping and that is passed on the to consumers. There has been huge difference of petrol and diesel price since three months and unless and until emergency measures are not taken , we are bound to face further escalation of prices. The most affected were the middle class and in last budge FM said that middle class will not be bothered but every act of the government either directly or indirectly affecting the middle class people only.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #649409
    Inflation has been there since the time the concept of currency came into the picture. Inflation causes problems in our life, but without inflation, society doesn't function. Economists have already explained this. Inflation provides the impetus to move forward, but uncontrolled inflations causes destruction. ''The Great Recession'' in Europe and in the USA during the thirties proved it.
    Beware! I question everything and everybody.

  • #649426
    Inflation is the cause of price of every commodity and it is making the common man's life worse. There is an increase in cost of every commodity in the market. Auto fares, city bus and bus transport costs are increasing. Cooking oil, vegetables, LPG, kirana items costs are escalating day by day. Why this central government is not taking any measures to cotrol fuel price which is bringing a havoc into common man's life.

  • #649690
    Controlling the fuel prices is the only answer for this price rise. The tax on fuel is very high. The major part of the tax is going to state governments but not to the central government. As such all the State government should discuss and get ready to lose some money in the form of taxes on fuel. If the states accept for the tax on fuel equivalent to the taxes of central government, then the fuel price can come down by Rs10/- per litre which will be a big relief to the consumer. Another way is to bring the item into GST with the maximum slab in GST as the tax in which share will go to both the central and state governments.
    drrao
    always confident


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