Inflation as a destroyer
20 January 2022 By Abiodun Giwa
People don't want to pay higher prices for a reason not their cause. Photo (Courtesy: World Economic Forum).
Ordinary people don't know inflation but feel the hardship from its pangs. They are careless about the talk of problems in the supply chain. They care about getting whatever they want from the market at affordable prices. The government's responsibility is to ensure prices of commodities are not above the reach of the ordinary people.
Governance runs into a problem when prices are not affordable due to what economists call inflation; when the supply is lower than the demand, the money in circulation pursues few goods, making suppliers dictate the price. Balancing the supply and demand chain is the process economists use to manage costs in the market.
Unfortunately, the greed or selfishness of the few rich is held responsible for the rising prices. We hear people talking about social inequality as the cause of unrest when people decide to hold their leaders accountable. Leaders invite trouble they invite or are hardly prepared for when they go to sleep rather than work to lift the burden of inflation.
Inflation makes people think they are poorer than they are. It makes leaders appear foolish and causes endless enmity between the people and their leaders. To be economically incapacitated is never people's wish for no cause of their own. And the reason leaders worldwide keep watch on the supply and demand chain is to ensure the prices of bread, cooking oil, and other essential goods don't go beyond the roof.
Causes of inflation vary from country to country. Currently, Nigeria has about a 15 percent inflation rate. Greece has a 5.1 percent, the United States comes with seven percent, and Khadakstan has 6.5 percent. Whatever the cause of inflation, it leads to higher prices and trouble for governance. Inflation does not help the reelection of a leader. It instead pushes leaders into trouble. They have to work hard to survive.
Policymakers generally believe it is acceptable for a government to avoid anything that will push inflation above the reasonable rate of inflation of 2 percent or something below it, according to the Board of Governors of the Federal Reserve System. No wonder Nigerians are crying of economic emasculation. How can people survive under a consistent 15 percent inflation rate? Wasn't such a dastard financial condition that led to Khadakstan's recent revolt?
Is it any surprise that Greece, with a 5.1 inflation rate, is struggling to remain above the water with a wage increase beginning of the year and another wage increase coming in May? It should also not surprise observers that Americans wonder what is happening in their country. Economists and the elite know America's inflation rate hit 7 percent in the last month of 2021. However, ordinary people understand the economic situation is out of control based on their prices for goods.
The media is reporting America's inflation rate and the impact on the prices of goods. The people feel the pangs in their pockets because their earnings can only get them fewer goods than expected. The oil price at the gas station is $3.32 compared to 2.39 one year ago. Khadakstanians have cried and revolted. Nigerians are yelling, and no one seems to listen.
Greece is using wage increases to stem the danger of inflation. However, Americans have shown their displeasure in polls statistics and are against the current challenging economic condition.
Governance runs into a problem when prices are not affordable due to what economists call inflation; when the supply is lower than the demand, the money in circulation pursues few goods, making suppliers dictate the price. Balancing the supply and demand chain is the process economists use to manage costs in the market.
Unfortunately, the greed or selfishness of the few rich is held responsible for the rising prices. We hear people talking about social inequality as the cause of unrest when people decide to hold their leaders accountable. Leaders invite trouble they invite or are hardly prepared for when they go to sleep rather than work to lift the burden of inflation.
Inflation makes people think they are poorer than they are. It makes leaders appear foolish and causes endless enmity between the people and their leaders. To be economically incapacitated is never people's wish for no cause of their own. And the reason leaders worldwide keep watch on the supply and demand chain is to ensure the prices of bread, cooking oil, and other essential goods don't go beyond the roof.
Causes of inflation vary from country to country. Currently, Nigeria has about a 15 percent inflation rate. Greece has a 5.1 percent, the United States comes with seven percent, and Khadakstan has 6.5 percent. Whatever the cause of inflation, it leads to higher prices and trouble for governance. Inflation does not help the reelection of a leader. It instead pushes leaders into trouble. They have to work hard to survive.
Policymakers generally believe it is acceptable for a government to avoid anything that will push inflation above the reasonable rate of inflation of 2 percent or something below it, according to the Board of Governors of the Federal Reserve System. No wonder Nigerians are crying of economic emasculation. How can people survive under a consistent 15 percent inflation rate? Wasn't such a dastard financial condition that led to Khadakstan's recent revolt?
Is it any surprise that Greece, with a 5.1 inflation rate, is struggling to remain above the water with a wage increase beginning of the year and another wage increase coming in May? It should also not surprise observers that Americans wonder what is happening in their country. Economists and the elite know America's inflation rate hit 7 percent in the last month of 2021. However, ordinary people understand the economic situation is out of control based on their prices for goods.
The media is reporting America's inflation rate and the impact on the prices of goods. The people feel the pangs in their pockets because their earnings can only get them fewer goods than expected. The oil price at the gas station is $3.32 compared to 2.39 one year ago. Khadakstanians have cried and revolted. Nigerians are yelling, and no one seems to listen.
Greece is using wage increases to stem the danger of inflation. However, Americans have shown their displeasure in polls statistics and are against the current challenging economic condition.
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