Price - Rise
Rising prices causing a great concern to Indian economists at the present moment. Economists tell us that as the demand for a thing becomes more than its supply,its price increases. This increase in price may be a temporary phenomenon . The price of vegetable is higher in summer than in winter. this is due to insufficient production of vegetable in the summer. this temporary rise in price is not of such importance as the tendency of constant rise. in the case, once the price goes up, it never comes down. Today the price of a thing does not remain fixed at any high level. if we compare the present price of articles of everyday use with their prices a year back, we find how enormously prices have gone up. Income of a man does not increase scrapidly and so continuously. Naturally everyman is suffering under the high price. It inflicts untold miseries on the common man and spells disaster for the economy.
The ILL - Effects of Rising Prices: The fixed income groups like salaried people, wages - earners and those living on pension are the most helpless victim of inflation. Even if their pay - packets slighly grow in size as a result on additional dearness allowance, their purchasing power actually goes down. High prices also adversely affect the exports of the country. Sparing neither the rich nor the poor , neighbour the producer nor the consumer. hey are now a source of constant concern to the Government as well as the monetary authorities.
Causes of Price - Rise: The blame of price -rise partly lies at the door of the government but the large responsibility goes to the society. The main cause for the scarcity of things in the rapid growth of our population. during the last thirty years alone the population has gone up about seventy percent. Rising population multiple demands for all kinds of goods and services available in the economy and leads to an all -round price like. Slow increase in agricultural and industrial production, faculty distribution and marketing system, and an unprecedented like in oil prices in the international market can be cited as some other important factors that have aggravated the situation. The taxation policy of the government has also contributed to price rise. The defective policy of taxation encouragement tax evasion. thereby adding to the black money constantly till there is almost a parallel economy totally dependent on black money. Our businessmen create artificial man - made shortage by boarding and profiteering. Natural calamities like foods and famine have also played have with our agriculture process.
Steps to Check Rising Prices: Our government is quite conscious of the magnitude implications of of the problem. The government has modernized the agriculture. Food production has increased but there is no proper arrangement for storage. The need is that of strict enforcement of the steps of the government. The businessmen should also feel their responsibilities and try to check rising prices. But nothing can be of any substantial help unless the growth of our population is checked.
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