Inflation + Common man

How inflation affect the common man?

As long as UPA / Congress + DMK governments are ruling our country, I am sure one day everyone of us will be sitting on the road holding a begging bowl like what we see in the picture. The UPA government is nothing but a collection of buffoons in the name of Ministers and MPs. Besides, most of them are crorepatis - they don't know and they won't understand the pain of a common man - they don't have to. The fuel price has been increased several times during the UPA's Ist term and in the succeeding period. There are more to say. Altogether, the life of a common man has been much affected by the increasing prices of essential commodities. Meanwhile, our PM predicts that the prices would come down before the end of 2010. I think, he is laughing at our foolishness to have elected them for the 2nd term. Long live those who have VOTED this government TO POWER...!!!

Now read the below article to more about the inflation and how does it affect a common man.

Umashankar. K

Inflation is the overall increase in cost of products and services. Increase in taxes and fees leads to inflation. Inflation also generally causes due to scarcity. When the cost of business increases, the prices of the products increases and this abrupt increase, the income rate supposedly goes down. These things forces the employees to search better paying jobs or work relentlessly hoping their employer will give them a raise. Similar is the case, when the personal income tax, property tax, sales tax, auto registration fees increase then either the employee has to live on less or ask the boss for a hike.

The ever increasing inflation has forced the common man to borrow money from banks and other financial institutions. The consequences, of course people have to stand with indefinite debts or either have to cut down on their lifestyle or beg for hike in compliance with inflation to assist them move at the forefront.

Although common man is fighting this never-stopping price rise on Delhi's streets, whereas our politicians are finding ways to cope with the same issues in AC and other luxuries. Government is busy solving internal conflicts by supporting other party. And the question that arises here is who is thinking about the problems faced by common man.

Finance ministry hopes that inflation will come down till years end, but the issue that rises here is, Is government taking the "inflation" issue only on the political lines???? Inflation in America has been consistent apart from the year 1970, when an unexpected percentage rise was encountered. However, the American govt. managed to deal with the issue at once.

The middle class requires a lot of financial planning as well as retirement planning that usually everyone forgets. Under all these circumstances, the survival of common man is becoming tougher and tougher. With so much to lose, nobody is expected to gain, and a much serious thought is expected by the govt. to meet the current obligations.

Source: http://wiki.answers.com/Q/How_inflation_affect_the_common_man