essay for Problem of rising rice
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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.