Inflation is an economic term. It means a constant increase in the price of things. Due to inflation, unemployment, kidnapping, robbery, and street crimes occur. The government and the public both play a key role in inflation. In Pakistan, inflation reaches a very high level.
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Inflation in Pakistan Essay with Quotations in English
“Inflation is as violent as a mugger, as frightening, as an armed robber, and as deadly as a hit man.”
(Ronald Reagan)
Inflation is one of the major problems in the world. It is an economic term. It means a constant increase in the supply of money. When the central bank expands the money supply or money in circulation, inflation takes place. When prices of commodities and services rise due to an increase in demand, inflation raises its ugly head. In simple words, inflation describes a fall in the purchasing power of money. Therefore, in ordinary speech, inflation is often taken to mean high prices.
“Income is something you cannot live without or within.”
(Thomson)
The problem of rising prices has become very serious. Most of the people in our country are poor. They have a very small income. There are some salaried people with a fixed income. Therefore, they are badly hit by the rising prices of essential commodities for daily use. The prices of goods are rising every day in our country. The living standards of the poor are dwindling day by day. The problem of price hikes has reached alarming proportions in Pakistan. The poor and the middle classes of society find it extremely difficult to make ends meet. The only way to beat the high cost of living is, perhaps, to stop living.
“He who will not economize will have to agonize.”
(Confucius)
Inflation gives rise to some malpractices in society. People who find it difficult to meet their daily expenses are compelled to adopt unfair means to get money. They become robbers, dacoits, thieves, and pick-pockets. The government officials started taking bribery and abusing their powers. In this way, they promote injustice and cruelty in society.
Growing social and political evils like bribery, hoarding, tax evasion, smuggling, profiteering, and political chaos become rampant due to selfish interests and moral apathy. In such a society, there is no sanctity of the law. People believe in the saying. “Make hay while the sun shines.“
“Inflation is taxation without legislation.”
(Milton Friedman)
There are many causes of inflation. One of the major causes is the faulty economic policy of the government. The government issues more currency to meet the deficit in the budget. The supply of money in circulation increases, but the supply of services and goods remains the same. This results in a price hike. The inflow of foreign aid also increases inflation. Again, the import of unnecessary things and spending of foreign exchange on luxury goods also cause inflation. Rapid growth in the population is another cause of inflation. With the increase in the population, demand for goods and services like food, clothing, housing, water supply, and electricity increases. If the supply remains the same, the prices will increase. Low production of goods also gives rise to inflation. When agricultural and industrial production decreases, a shortage of goods and services are created. It also results in inflation.
“The truth is, we are all caught in a great economic system that is heartless.”
(Woodrow Wilson).
In order to check inflation, some solid steps should be taken sincerely. The government should frame reasonable and realistic policies. It should curtail its non-productive expenditures. The government should increase industrial and agricultural production. It should control the birth rate through family planning programs. It should check the import of luxury goods.
People should try to curb consumption positively, and develop the habit of saving at public and private levels. The government must increase local and foreign investment. Unemployment, poverty, illiteracy, prostitution, street crimes, kidnapping, robbery, and many other social evils are directly linked to inflation. The rulers must take prompt and drastic measures to control the constantly increasing price hikes; otherwise, great unrest in the masses may be exploited for some revolutionary purpose by the opposition.