Wednesday 6 February 2013

Is it that consumption level is to blame for soaring prices?

It happens many a times that you go to some market or the other to buy some thing but it is not available for the simple reason that the entire stock with shop keepers is fully sold out. You go to one ATM after the other, it is often found that the cash position with them is entirely depleted through enormous levels of withdrawal. You go to some railway station to buy a ticket for your journey, there are long queues despite bookings already being done online through computers besides the travel agents. You go any where, the unending queues are a normal scene. Wherefrom all this money comes? Is it really hard earned one or black?. Whatever it is, the position as is quite visible on the surface is that there is plenty of money available with the consumers. The very principle of demand and supply as described in economics applies. More money in the market as against the demand for supply is the root cause of soaring prices. If the black money is visibly unearthed and confiscated by the government, the price tags of different commodities are bound to go down with the result that the people may easily take a sigh of relief.

3 comments:

veepee said...

Perhaps the Govt.could not search out any line of demarcation to keeping themselves out of cryteria therefore the Govt.is not doing any effort to bring out black money on the surface.In my view the rout cause of curruption of such level in the country is Govt. only.

myso said...

well said, Sir.

garv said...

Yes Sir, the consumption ratio of the society is very much on the high side

addy-2