Inflation is rising throughout the world. Inflation rates are rising in third world countries more as compared to first and second world. The reason behind this high inflation is increase in demand and decrease in supply.
We were playing those games tirelessly from 2 to 5 hours a day, continuously. Those titles were much better when played with video game cheat codes. Unlocking a level, equipping infinite bullets and infinite player health, and much with some combination of keyboard keys. It seems like madness to play those games with such dedication and interest. That sometimes your parents yell at you, “kiddo please leave these video games and read your books instead. Do something productive”.
Types of Inflation
Demand Pull Inflation
With the increasing demand of products and high cost of services, the prices go up. Alternatively, you have to hire labor with high wages, that causes the demand pull inflation.
Cost Push Inflation
As the demand pull inflation kicks in, and the increase in raw material costs. The businesses increase the prices of the products, which results in cost push inflation.
Built In Inflation
With the demand pull and cost push inflation the build in inflation occurs. Employees ask employers for a raise, if the employer does not increase employees salary. Then they end up with a shortage of labor.
The employer may increase the wages to keep them. So, they increase prices and their profits. That is built in inflation.
Effects Of Inflation
The effects of inflation might be horrible, people go suicide, when they can’t fulfil their family needs. But this is not right, we all know. We should support such poor families, give them food and help them with some cash. Giving charity can broaden your income and encourage you to earn more not for yourself only but also for the people with low-income.
People may lose their job in inflation, as employers cannot bear the production cost due to high raw material cost and expenditure of the company. So, they try to cut down the labor and rely on less resources to keep the profit the same.
Prepare Yourself for this Time
I know, this is a hard time for people earning low incomes to fulfill their basic needs. The food, education, clothes, travel, and medical. Some people who lack basic education suffer much during this time. As they have less opportunities to carry jobs, but that’s not where life ends. They must improve and build their skills to earn more and work smarter.
Having fear of a big hike in the consumer price index, one must not fear the expenses. Rather, they prepare themselves for this time and farther. Preparing not also means that they work harder and work long hours at their jobs. Because, that gives you more stress and you lose work life balance.
We have to start finding smarter ways to earn money. Also, giving time to family and friends is necessary. We must spare some time for parties and picnics to refresh our mind. We have to start saving 15 to 20% from our monthly income. And that’s only possible if we cut down our unnecessary expenses.