B.Com Part 1 Functional English Essay Inflation With Outline

(Last Updated On: February 12, 2018)

Essay on Inflation With Outline

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1.     What is inflation?
2.     The intensity of the problem.
3.     The effect of the inflation:
4.     The alarming causes of the inflation:
a.     Indiscriminate use of consumers’ goods.
b.      Reckless buying of the luxuries.
c.      Higher demand and the less supply.
d.     Foreign investment and developmental activities.
e.     Increase in population.
f.       Rise of prices in international market.
5.     Remedial measures taken to cope with the problem: Fair and organized distribution of goods in the country. UNO and world-agencies should also play their role.
6.     Conclusion.
Inflation is caused in a country when the supply of money increases more as compared to the supply of goods of daily
use. It means there is an increase in money and the prices of commodities. But there
is no increase in the production of commodities of daily use.
Too much money, chasing too few
In the developing countries, like Pakistan.
The majority of people in our country belong to the low-income group. Usually they
have very meager sources of income. Very often the incomes of people are taxed.
Therefore, they are hard-hit by the high prices of essential goods which
register a rise every week and every month. The result is that the standard of
living of the people is dwindling day by day.
Rising prices also affect nation life
in the economic field. The businessmen adopt adulteration, black marketing and
other methods to maximize their profits. Since the prices of goods are beyond
the reach of common man, the standard of living goes on falling gradually. This
develops a sense of deprivation among the poor strata and they indulge
themselves in collecting wealth through unfair means.
There can be numerous reasons of
inflation or rising prices: first, when people start the use of different thing
in abundance, the prices of such things rise. The prices of such things
certainly rise if their production does not increase according to the demand of
the people.
Second, reckless buying of luxuries
is another cause of inflation in the country. Some people indulge in
indiscriminate buying of luxuries and feel pleasure in living beyond their
means. This reckless purchase of goods of common use leads to rise in prices.
In developing countries like Pakistan,
the developmental activities usually cause inflation. The funds and the loans
that are acquired from foreign countries are invested in different projects. They
increase the circulation of money in the country, when people have more money
in their pockets; they will be prepared to have more and better facilities of
life and to money in their pockets; they will be prepared to have more and
better facilities of life and to offer higher prices for them. All these
economic forces join hands and create a serious problem for the common man and
the government.
Fourth, the most important of these
is the increase in population. If the population of a country increase at a
rapid rate as compared with the increase in its means of production and
economic development, the rise in prices becomes inevitable.
There are some ways or remedies for
reducing inflation or the rising prices of the commodities of daily use: first,
there should be a proper regular system for the distribution of these goods of
daily use among the citizens throughout their entire country.
Second, the UNO and other
world-agencies should do their level best to settle and remove disputes among
different countries and nations. All the countries should cooperate with one another
and work together to increase their production of the goods of daily use and
keep their prices at a proper level. If there is peace in the world, all the
countries of the world will also stop wasting their resources on production for
war. In this way, there will be a maximum reduction in inflation or rising
Finally, all the countries should
take some suitable steps to check the increase in population. It is difficult
to increase production of different goods of daily use as fast as the
population is increasing.
Second the government should not
impose so many taxes, duties or surcharges on the commodities which are used by
the common man which are considered to be necessary for human life. Besides, it
the most important duty of the government to keep vigilant eye on the production
and sale of essential goods. Undue profit-making should not be allowed in any
To conclude, it is very essential to
probe into main causes of inflation or rising prices and then to take some suitable
steps, as pointed out above. The join efforts of all the countries can minimize
inflation which is found in almost all the countries of world.



Hi! I am the CEO of www.lahoreeducation.com and i am living in Pakistan(Lahore) and i am teacher of commerce i teach about money, banking, finance, intro of business, economics, accounting and some other subjects of commerce and i write notes of that subjects.

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