Question

impact of price Hike on poor section of society paraghaph​

Answer 1

Answer:

good

Explanation:

but it is very easy

Answer 2

Rising prices of essential commodities coupled with wage deflation and increasing joblessness are pushing the poor households in India to a point of distress. Cosmetic measures of the government are unable to address the situation.

The government of the day is harping upon the idea that an annual GDP growth rate in the range of 7% to 9% would be able to address the situation. The country has already experienced a GDP growth rate of 7.9% in the second quarter of the current fiscal 2009-10, but the situation has not improved. This is enough to prove that the GDP growth rate alone would not solve the problem.

Governments heavy dose of fiscal stimulus can give a big push to the corporate performance and post a good industrial growth which has already been possible in the second quarter of the current fiscal year. The services sector, which accounts for 64.5% of the GDP, has also performed well registering a growth of 9%, partly due to the implementation of the Sixth Pay Commission award. The state governments and the public sector companies are likely to align their pay scales with the Sixth Pay Commission award and hence a further push to the services sector is expected. But this would certainly not address the wage deflation in the private sector and the shrinkage in job opportunities caused due to the impact of the global financial crisis.