DEARNESS/ INFLATION/ RISING PRICES

Outlines:

A. What is inflation?

B. Inflation is a worldwide problem.

C. Inflation has many reasons:

1. Use of things in abundance

2. Less supply of commodities

3. Rise in the standard of living of the people

4. International market rates

5. Over population

D. Inflation causes much harm in a country like Pakistan.

1. The people use unfair means to meet their needs.

2. The economy of a country is the worst hit.

3. The country cannot make progress.

4. There is panic in the society.

E. There are some ways to minimize it.

A. What is inflation?

Inflation means when there is an increase in money and the prices of the commodities but there is no increase in the production of commodities of daily use.

B. Inflation is a worldwide problem.

It is a worldwide problem. But, in Pakistan, it has reached an alarming stage.

C. Inflation has many reasons:

1. Use of things in abundance

2. Less supply of commodities

3. Rise in the standard of living of the people

4. International market rates

5. Over population

Inflation has many reasons. First, the excessive use of a thing causes inflation because the more the demand of a thing is, the more its price will be. Second, the prices of things rise if their supply decreases. This supply may decrease due to hoarding, strikes of the workers, the lock-outs of the factories by the employers, the absence of rain and an increase in taxes, etc. Third, inflation is also due to the rise in the standard of living of the people. Rise in standard compels the poor people to follow the people having a high standard. So, they need more and more goods of daily use and in this way cause inflation. Forth, inflation is also due to rise in prices of the things in the international marks because the rates of international markets have a direct and indirect effect on the prices of the things which are produced in the country. We export many things from other countries. Fifth, overpopulation causes inflation. The more the population increases, the more the demand for a thing increases. The increase in demand for things will increase prices.

D. Inflation causes much harm in a country like Pakistan.

1. The people use unfair means to meet their needs.

2. The economy of a country is the worst hit.

3. The country cannot make progress.

4. There is panic in the society.

Inflation causes much harm in a country like Pakistan. In Pakistan, most of the people are poor. Their purchasing power is very low. When they are unable to meet their needs, they use unfair means to fulfil their needs. They become thieves, dacoits, robbers and pick-pocket. Sometimes, they are ready to sacrifice their lives to support their families. They are ready to become terrorists and suicide attackers. Inflation also causes the downfall in the economy of a country. The country cannot make progress. There is panic and sensation in the country. The people protest against the government. There are demonstrations against the country. In Pakistan, we have observed such protests and demonstrations made by the people.

E. There are some ways to minimize it.

There are many ways to minimize it. First, we can follow the best example set by the Chinese. The Chinese mitigate the use of a thing when its price increases. This step will help a lot in decreasing the prices Second, the production of the things of daily use should be enhanced. Third, all the countries of the world should make joint efforts to decrease inflation. They should do so on humanitarian grounds. Forth, the people must be guided as for as the problem of overpopulation is concerned. It will decrease the population as well as dearness.

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