Everyone is Facing Soaring Inflation, Inequality & Hypocritical Policies From Govt & Different Firms

In simple terms to understand, What is inflation:

The ghost of inflation eats all your hard-earned money. It feeds on the worth of your money. So, what is this inflation even mean? This term which we hear so much on news, what does it even mean?

Why is it happening?

Inflation, in general, occurs due to one of three reasons:

  1. Rising prices — when the cost of production rises, the manufacturers compensate for it by increasing the prices of their products — letting the consumers take the brunt of the rising costs. This leaves lesser purchasing power to the consumers.
  2. Rising demand — When the demand for particular commodities increases, and the supply chain is unable to keep up with the said rise, it leads to a rise in prices — resulting in inflation.
  3. The third is a vicious circle of the wage cycle. This happens when the labor demands a hike in their wages to suffice their lifestyle needs, thus impacting commodity prices, which eventually leads to more demand for hikes.

In most countries, Governments reducing inflation has been a key objective.

Government cannot produce wealth it can only consume or destroy it. So where does the government get its revenue? Three ways, taxation, borrowing, and printing.

Inflation in Pakistan:

A reasonable dosage of controlled inflation is necessary for the growth of any economy. But if inflation takes to rioting, just as in Sri Lanka economy will collapse leading to unimaginable dimensions. The state itself becomes a failed one.

The Effect of Economic Inflation on People’s lives:

Inflation affects different people differently. This is because of the fall in the value of money. When the price rises or the value of money falls, some groups of the society gain, some lose, and some stand in-between. Broadly speaking, there are two economic groups in every society, the fixed income group, and the flexible income group.

The Effect of Economic Inflation on Business :

Also, It depends on the type of business. Inflation affects the business because the cost of goods sold goes up. Many businesses will close their door for good because of the inflation rate. Specialty shops often sell items that people can live without, and in times of high inflation, they will do just that.

Inflation in the IT industry:

IT companies are the biggest beneficiary of rising dollar prices against PKR because most of their revenue comes from abroad depending on their business projects. And U.S is the biggest overseas market for IT companies. In the next quarter, IT companies will outperform market expectations.

Inequality & Hypocritical Policies From Different Government & Companies For Their People & Employees Around The World

In the last few days, everywhere debates about it specifically on some social media like Twitter, especially Linkedin where everyone shares their views and reactions on the current situation Inflation, and the increased price of fuel which impacted everyone's lives, businesses, and also country’s GDP.

Worker pay at many companies failed to keep up with inflation last few months. But those same businesses had enough money for stock buybacks and others

You have workers, many of whom have performed heroically in recent years or months to keep your company’s financially going, and yet their efforts aren’t valued more than just a tiny fraction of the value.

Inflation May Get Much Worse This Summer And Could Linger ‘Many Years: Experts Warn

The economic crisis is expected to produce secondary mental health effects that may increase suicide rates. It is well known that mental health problems are related to deprivation, poverty, inequality, and other social and economic determinants of health. Economic crises are therefore times of high risk to the mental well-being of the population and of the people affected and their families.

There is no health without mental health

Mental health is an indivisible part of public health and significantly affects countries and their human, social, and economic capital. Mental health is not merely the absence of mental disorders or symptoms but also a resource supporting overall well-being and productivity. Positive mental health is a state of well-being in which the individual realizes his or her own abilities, can cope with the normal stresses of life, can work productively and fruitfully, and can contribute to his or her community.

Mental health is determined by socioeconomic and environmental factors

An economic crisis affects the factors determining mental health. Protective factors are weakened and risk factors strengthened. Employment benefits mental health. Job security, a sense of control of work, and social support at work are factors promoting the mental health of employees.

It is the poor that will be hardest hit by the current economic crisis.

The current economic crisis is increasing poverty in many countries around the world. The economic crisis will hit people with low income and those made poor through loss of income or housing the hardest. The economic crisis has increased the number of households in high debt, repossession of houses, and evictions.

An important reminder:

Due to inflation and several reasons, inflation had already made our life worse, People need to speak up against the practice of imposing those inequality policies repeatedly was not only unjustified but also cruel which divide people and spread negativity, and promote surged hatred.

We are giving ‘2,000’ Rupees to anyone whose salary is less than ‘40,000’ & The gov is giving its money to you crybabies!

The numbers of suicide attempts are high during pandemic and inflations time. and that is reality.

During the COVID-19 pandemic, Suicide increment during and afterward a pandemic is highly common and now, Suicide is higher among economically inactive and unemployed persons than employed persons. The COVID-19 pandemic has created a major mental health challenge throughout the world. the unimaginable mental sufferings such as depression, panic, fear, anxiety, stress, trauma, adjustment disorder, etc.

So, how do you manage your expenses with these rising prices?

Inflation creeps in slowly and fades away slowly. One needs to be patient, not panic and deal with a rational mind.

  1. Following a strict budget:
    Disciplined expenses come in handy big time in a tight economy. It is important to be mindful and watch your expenses in such a situation. Don’t spend more than you need. Don’t spend more than your means. The resultant smaller savings will come in handy.
  2. Prioritizing expenses
    In an inflationary economy, where you cannot control how much you spend on essentials, you can cut down on unnecessary spending. The key here is to continue saving the same amount of money as you were earlier. Eat out less often. Step back on shopping unless absolutely necessary. Find alternative solutions like free or low-cost online courses and more.
  3. Don’t touch your contingency funds
    If you have been saving up for an emergency corpus, do not touch it. Inflation leaves you with less money in hand, so it is best to work on spending less, not on saving less. Usually, the first step people take is stopping their investments, even liquidating them, so that they do not have to cut back on lifestyle spending. But adjusting a bit for a few months isn’t a big deal, is it?
  4. Adjust your debt repayments
    If you have borrowed a personal, student, or any type of loan, see if you can reschedule your repayment plan. While you may not be able to cut back on all expenses, putting off your debt repayment for a while can give you some breathing space.

Final Thoughts:

A recession and inflation are always a final chapter in people losing confidence in the economy, Under the current scenario, the economy is introducing rate hikes to tackle the recession. But we can’t be sure of the recession by end of 2022.

No job in this world is a guarantee. We must realize that. It is only if we save we can survive.

It’s in people’s self-interest to try to contain this.

I write to keep you thinking and to keep me thankful and reflective and until next time, keep reflecting.

Thank you for reading!

Finally, I pray to Allah to benefit those who read this article and others, grant me truthfulness in what I say and do, preserve my thoughts and my pen from deviation and guide me in all my affairs.

And all praise and thanks are due to Allah, without Whose help and guidance nothing can be accomplished. May Allah bless you with happiness, success, guidance, health, and knowledge. May Almighty Allah give us the strength to follow the Sunnah of our beloved Prophet Muhammad (P.B.U.H) and make us part of the group who is among the most righteous! Ameen.

Be patient with yourself. And Keep learning!!

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Raja Muhammad Mustansar Javaid

Raja Muhammad Mustansar Javaid

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Writer | network engineer | Traveler | Biker | Polyglot. I’m so deep even the ocean gets jealous