High Cost of Living Essay Example

High Cost of Living Essay Example High Cost of Living Essay High Cost of Living Essay Janira Sanchez Professor Bruno Microeconomics May 5, 2011 High Cost of Living A rise in prices, economists say, is a sigh of development and prosperity. But during the last two decades, prices of almost all the essential commodities have been increasing at an alarming rate. These soaring prices have caused great unrest and frustration among the people. All the more, the soaring prices have become a big threat and an open challenge to the government It has shaken the faith of the people in the government. There is no let-up in the situation. Life has become very hard. Also things of dairy use are sometimes not available in the market. The prices of petrol, cooking gas, kerosene oil and several other items of daily use are increasing every year. Also the railway fares, air fares and bus and taxi charges also increasing regularly. The rich make a display of their wealth while the poor find it difficult to make both their ends meet. Life has lost its charm for the average bread-winner. The indiscriminate rise in prices of essential commodities has left many a people tense and helpless. No one can foresee what is in store for the common people. There are many causes of the unprecedented rise in prices. Inflation, black marketing, hoarding, faulty credit system, over population, and improper system of distribution arc some of the major causes of hike in prices. The standard of living of the people has improved. People need more things than they needed earlier. This increasing demand leads to hike in prices. Sometimes, natural factors like flood and drought also contribute to rise in prices. Production of food is not in proportion with the increase in population.. With the breaking of joint-family system, the cost of living has gone up. The purchasing power of the rupee is continuously calling. It is now being increasingly felt that large scale corruption by some political leaders in power and some senior officers in the government is also the cause of constant rise in prices. In the recent past, several scams have come to light that involve big amounts said to have been pocketed by the big-wigs of the country without any shame or remorse. Several cases are pending in the courts. It is, however, feared that influential and moneyed people have the ower to so circumvent the legal process in their favor that they go free. These huge amounts of black money produce a very bad effect on the economy of the country and lead to a rise in prices. It is the duty of the government to bring down the prices of the essential commodities at least. Price line is the life line of a nation. Black marketers, hoarders and profiteers must be brought to book. Family Planning programs should be stepped up to check over-population. More fair-price shops should be opened in different locations. There should be an equitable distribution through the fair-price shops. Shopkeepers should be directed to display the stock of essential commodities along with their prices. Those people who buy things in the black market should be punished. Production of food should be increased. Sincere efforts should be made to stabilize prices of essential commodities. Corruption, bribery, smuggling and illegal gratification deep-rooted in the society must be rooted out to control rising prices. References   www. fao. org/newsroom/en/news/2008/1000845/index. html