Increased Prices of Necessary Goods and Inflation Affecting the Poor Working Class People

Research Paper Increased equipment casualtys of undeni up to(p) dangerouss and Inflation poignant the sad melting caste mountain. Submitted By Minhazur Rahman short letter ENG -105 Abstract Global viands outlay has diaphysis up in the last years that comport been succeeded by an extraordinary global sparing down-turn Rich, mid and poor economies argon affected largely in damage of erosion of growth, shrunk investment and littleening of job creation. The global f argon crises and the economic recession in the major economies deliver haved a complex scenario whereby viands price may not stabilize creating erosion of income of the common messiness and making investment more than costly.This is presenting tremendous challenge to countries like Bangladesh which is plunged foster in economic deprivation and stag soil. The bad impacts of mel emited prices on nourishment stuff is devastating the on the poor producers, wage laborers and consumers in our country. These heap ar surviving truly harshly in these dire situations and atomic number 18 having m whatsoever difficulties living their drop deads. This composing is the outcome of a interrogation conducted to give the sackvas the impact of price hike oer diminished-toneder bring ining crystalise mess.The Research consists of the Introduction containing Background of the Research, Areas of the Research, Hypothesis, Methodology, Data Analysis, Findings, and Recommendations. The purpose of the query was to range what are their actual problems these stack are lining because of price hikes and high pompousness. TABLE OF CONTENT 1. Introduction 4 2. Background 5 3. Areas of query 6 4. Hypothesis 6 5. Methodology.. 7 6.Review of literature.. 8 7. Key terms.. 8 8. Limitations 9 9. Primary data launching and analysis. 10 10. Recommendation 24 11. Conclusion.. 25 12. fiber.. 26 13. Appendix.. 27 Introduction Since early 2007, Bangladesh has been experiencing a come up posit ion of splashiness particularly in fodder for thought for thought grain at the backdrop of global hike of food grain prices.The rising largeness has become a major threat to pack from all segments of the society. This high largenessary ctype Aaign does not bode well with respect to the socio-economic progress, particularly, on the poor and vulner sufficient assorts. Rapidly higher food rising prices has make it difficult for the emit income households to carry on with their daily basic expenditures. harmonise to the area Bank, four million passel have been pushed on a lower floor the mendi chiffoniercy line due to abnormal rise in food price.An an new(prenominal)(prenominal) statistics of the World Bank shows that between January 2010 and March 2011, the gross income of the poor decreased by 46. 7 percent mainly due to surge of food items, get-up-and-go 3 million households below the poverty line. Even the bumper boro harvest could not save the pile from the grip of high inflation. On the other hand, the obstinate impact of inflation has created a stumbling block to macroeconomic stability and curtailed the stride of economic growth, which is necessary to poverty reduction and meeting other culture challenges and goals.This research shows what problems the low earning mint in our country are facing right now because of the inflation and the change magnitude food prices. This alike shows that what are the foods they are likely to consume and the prices trend of those foods over a distri exactlyor point of years. This shows that how a lot the price of necessary foods has g wizard up rapidly. 1. 1Background Bangladesh is a real populated country and close of the citizenry of our country are below the poverty line so we have lots of people with actually slim income or with no income at all.This sets a problem for the organization to maintain food prices so that those people can fecundate themselves. This is single of the biggest challenges apiece organisation of our country has to accomplish further sadly no(prenominal) of them were ever able to defeat it, not only that the prices of everything is going up as on that point is a global crisis going on. Global crisis is in any case increasing our inflation rate and because of that the food prices of our country is going up and up. Also the amount of food postulateed to feed the country is increasing thus slots of food have to be bought from outside the country such(prenominal) as India, Vietnam, Ukraine etc.Because of this our imports are acquiring higher than export thus we have a bad GDP than around of the countries in Asia. It is obvious present that the price of everything ranging from essential daily commodities to transportation, educational, medical and other get downs are increasing. concord to the study, as a consequence of the price hike, the majority (97. 7 percent) of people of capital of Bangladesh metropolitan metropolis and other par ts of the country are facing deep trouble in coping with the situation. In Dhaka city 43. percent of the people think that because of price increase just slightly everything, they are encountering economic hardship. To process people to switch this economic crisis regimen should come precedent and take steps against this price hike. The low earning people are on that pointfore having problems leading a normal life they are facing tremendous hardships such as they have to bargain food that is very low in quality thus they are acquire little amount of nutrition, they cannot afford any chassis of fruits for themselves or their family nevertheless if they can they are not so good.Also they are not able to buy good vestments for themselves or their family and not only these they cant afford education for their children as they already have so little income that they can hardly feed the whole family. So they are macrocosm stripped from all sorts of happiness a normal homoph ile being can have and when asked they put that it is a curse to be born poor as thither is very little help from them. 1. 2 AREAS OF RESEARCH In this partition, I will discuss about the areas of research that I have studied.For run lowing on it comfortably and acquiring my intended and expected result, I have prepared several questions, which helped me a lot for working on my survey. The whole questionnaires was based on the people with low income and there problems. From this questions I found out that people with low income are having difficulties leading there life and hardships they are facing to overcome this problems. This inflation and high prices of foods are forcing them to survive with a very little amount of food and commodities they control.While doing this research my overall analysis was correct that the people with low income are living in terrible conditions. My respondents were local people from where I live that is in Mohammadpur, here diffe let takes of peop le live from poor to rich it easy to find any category of people you like. So it was not hard for me to go through this interview, my prime foc exploitation was on the Rickshaw Pullers, Garments Workers, CNG & Taxi Drivers & Security Guards with a variable age difference with a range of 15 to 50.As most of them were illiterate person I had to translate each and every query for them and so were the results of the questionnaires. I interviewed a total of 40 eligible people that set(p) into my profile and gathered the other required in influenceation to complete this research. 1. 3 Hypothesis Majority of the people of our country is this low earning people so high inflation and increases food prices is making their life hard to live. 1. 4 Methodology Primary Source Through Questionnaire Interviews with general people analyze respondents 40 people- targeted segment is general low income earning people with ages between 15 to 50Secondary Source Websites Newspaper archive i n web Articles and other reports At the beginning I searched the web for relevant resources and took nearly ideas for my research and afterward with that knowledge I developed the questionnaires and conducted the interviews and later started compiling the primary and the substitute(prenominal) data to complete this research paper. 1. 5 Review of Literature My standby data includes online article and journals, judicature report on inflation excessively somewhat independent research conducted by various NGOs. This research is based on the primary data that I collected using the ideas of those secondary researches.As is this topic is a very vast one and it changes form area to area notwithstanding the base of the facts remains the same but more sample would have been better to make it a good quality research paper. For the research I used data from the Bangladesh bureau of Statistics, Bangladesh Bank, and World Bank. From here I used the nurture about the prices of the foods and other necessary goods. For research I used variant journals such as the journal written by Shamsu Uddin Shakib in the European Journal of crease and Management regarding the high inflation of Bangladesh and it causes an affects.Also for the research I used one article Iqbal Ahmed on regarding the Inflationary Trend in Bangladesh and stupor on High Food Commodity hurts. Here the writer has shown how the inflation is affecting all the people of Bangladesh this paper is done with the help of a tell on from a NGO as it is a national level paper. 1. 6 Key terms Inflation Inflation is a rise in the general level of prices of goods and go in an economy over a period of time. Commodity A commodity is the generic term for any marketable item produced to satisfy wants or needs.GDP Gross Domestic point of intersection is the market value of all officially recognized final goods and services produced within a country in a given(p) period. 1. 7 LIMITATION While preparing this resear ch paper I had faced a number of problems. Some of these had very little effect on the paper while other ones caused my research to be limited. The first limitation is I could not do my survey to the whole world for my primary research. I did my primary survey on my area and most of the people did not want to answer the questions. Besides, I had difficulty finding necessary information in the internet related with my topic.The secondary sources were very limited. Lastly because of being inexperience I might have not been able to organise all the materials properly. 2 Primary data presentation and analysis For my primary research, I collected data from 30 male and 10 effeminate respondents, aged between15-50 years. I conduct this survey within the marry and mateless people who have similar social positions. The Data Analysis section is an explanation of data gathered from the primary research. My respondents were PART A (Questionnaires) Q1. What is your highest energy?When I as ked this question I knew that I was going to get this kind of result with 20 people who are illiterate, 14 people who passed class 5, 4 people who passed class 8, and 1 somebody SSC and 1 someone HSC graduate but keep mum they are earning very low level income. Q2. Want kind of Job do you do? Well it was my option actually, to get a more accurate result I interviewed 14 rickshaw puller, 10 garments worker, 6 drivers, and 10 security guards. Q3. Are you married of not? This question was conducted in install to know the number of family constituent they have. Q4. What is number of total family members that live in your household?Here we can see that 13 people has a family of 4 people, but there is 16 people who has 5 people family, and 9 people who has 6 family members and 2 people with a family of 8 or more people. So here we can see a total of 202 people who are depended on maybe one or sometimes 2 breadstuff winners for the family. PART B Q1. What is your total family incom e? This shows that there is 21 people who are earning less than 4000 Tk, 11 people who are earning less than 6000 Tk, 5 people are earning less than 8000 Tk and just a lucky few among this group of people is earning 8000Tk or more.This shows that how low amount of salary they are getting but still they are doing a very hard work compared to middle class people. This shows that how bad the state of our countries low earning people. Q2. What is your total family expense? When asked this question many of them were not sure how much to say but after a while they gave me the answers which shows that 23 of the people lapse less than 3000 Tk, 10 people 5000 Tk, 6 people 7000 Tk and only one person spends 7000 Tk.When asked why they do not spend all of the gold they say that most of the time they do have to spend it all but they sometimes are able to save some currency for some other extra use. Q3. How many hours of work do you do each day? As we can see from the above chart that most o f the people have to work more than the usual amount of work that should be done by a normal person, because as they have every little knowledge they are required to do double jobs sometimes overtimes as a result they tend to work more than the natural working hour which is 8 hours.Q4. What is the total amount of bullion you spend on food? This chart shows that these people are using up most of their salary on food, 15 people is spending 1500tk as they have a pretty low income, 13 people spends 3000tk, 7 people spends 4000tk, and only 2 people spends 5000tk. Here it clearly shows that as these people has low income so they are forced to spend less on food and they are spending the most amount of coin on the food. The relationship between the number of family members and the amount of money they spend on food.This graph clearly shows that as the number of family members increases the amount of money spent in buying food increases thus making a clear assumption that more number o f people will require more food and more money is therefore required to feed a large family, which increases more difficulty of the bread winners and they have to work more hours as shown in previous charts. So one air to reduce this spending can be done by natural endowment birth to less number of kids as a result there will be less amount of mouths to feed also the population will get lower Q5.What food items do you consume and how much of it? This chart shows the average percentage of food items they consume in order to survive. A total of 40 percent of food out of blow percentages is rice as rice is the most common staple food of our country. Than the white potato it is because it is insolent and it departs lots of energy and therefore it is eaten a lot, because the other staple foods that the people consume. The food items that they consume are of very low quality and thats why they are available at a cheaper rate. Q6. What are the other areas that you spend your money o ther than food?This chart shows that after they buy their food the rest of money rather getting the opportunity of saving it, it is required in other places such as the rent, treat and doctors, clothing and education. These are the general areas that they spend contiguous to the food. Rent is the highest among all of this because the living cost in Dhaka city is increasing rapidly and to make sure that there is a cover above their head they are sometimes willing to consecrate the rent before they go and buy the food. Even in the slums the rent is getting higher rapidly so much of the income goes into paying the rent after food expenses.Doctors & Medicines Usually this entire people receive a very low class treatment. All of them have to go to the cheap government hospital which has a very well reputation in providing the worst kind of treatments. Also they cannot afford good medications as a result they become sicker and are more prone to catch diseases. If the government ma de some efforts to at least improve the quality of the hospitals and provide good generic medications at a cheaper rate than they would be able to save some money. ClothingThe people that I researched on are low income people no naturally they have a very low budget for clothing. Most of the times the clothes they wear are given by the people to them as charity or the wear second hand clothes or clothes which are of very poor quality. Education Education is the most important requirement for a nation to grow but most of the people I interviewed are illiterate or just primary graduate. Also most of the children of these people do not go to school as they have to pay the fees so they dont want to waste their money school. Some of the children go o school but they dropout early to help earn money for the family. The ones that remain they hardly pass the PSC, JSC or SSC exams and starts working. Inflation and Food prices trend of the last 4 years This graph shows the general inflation t hat is the inflation of everything all over the country and the inflation of the food price over a period of 4 years. It shows that during 2008 and 2009 the general inflation change magnitude 1. 5% more and food price inflation to 2. 8%, this shows that the problem of inflation is not recent but we all were suffering since 2008.But in 2010 there was a small hike in general inflation and the food price inflation reduced but in 2011 due to some social and political turmoil the food price inflation during shot up more than 2. 8% as a result the price of food increased drastically. This graph shows the price of some common food that everyone consumes but the quality of the products are of low grade as this research is about the low income earning people so is the price of this products but still this is high complete for these people.As we can see that during the year 2008 there was a price hike in both rice and atta this was because of the global fiscal crisis, because the amount of rice that is produced in our country is not full so we import most of our rice from Vietnam and Ukraine and due to the global recession Bangladesh also suffered the impact of recession as result our exports decreased but our imports increased as the population has also increased.Than in later years it alter but in 2011 it again hiked because of some political unrest in our country and also there was a breakdown of relationship with the populate countries as a result we took a huge hit. But for potato it was not a problem because we produce a lot of potatoes enough to the poor people of our country. 3 Recommendation It is obvious nowadays that the price of everything ranging from essential daily commodities to transportation, educational, medical and other expenses are increasing.To help people to overcome this economic crisis people from all walks of life should come forward and take necessary steps against this price hikes. Following steps should be taken Quick action 1) To cont rol price of commodity define rate and lending rate of Banks should control. 2) Provide more importance to husbandry sector. 3) Control Business syndicate as well as stockiest who create artificial crises in market. 4) Provide micro credit facility by government. The interest rate of that disbursement should not more than 6%. ) spell duties of fundamental goods have to deduct. 6) Consider corporate tax rate. 7) Established government regulated mega shop. 8) Tax rate of medical instrument & medicine should minimum. Long run Action 1) To remove unemployment problem seek different sources of sector. 2) Utilize our natural gas directly by government. 3) Growth rate of population control. 4) Indifferent monetary policy provides both public & private sector. 5) Overall control of malpractice. 6) Reduction of corruption. Conclusion High inflation is not good for any country it holds a nation back.This inflation does not only harms the low income people but also everyone in the cou ntry, this affects everyone this decreases the living standards of people. As I have shown high inflation limits the low income people they all live a very hard life, they buy very less amount of food as they have to pay the rent to live under a roof they constantly need medications as their living conditions are very bad and if they have enough money left they try to buy some new clothes or send their kids to school but many of them are not lucky enough. Most of their income is only enough for just rent and food.Because they already have low income and this high inflation is causing the prices of food and other commodities to increase rapidly as shown earlier, so they have no other choice but to live a very hard life. References 1. Shakib. S. U. ,( 2012) European Journal of Business and Management ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 4, No. 3, http//www. iiste. org 2. Ahmed, I. (February 2008) Inflation and the Poor in Bangladesh, Policy Analysis Unit, Bangladesh Bank , pdf http//www. bdprices. org/article/jan_11/meu_jan_2011. pdf 3. Ahmed, I. (n. ) Inflationary Trend in Bangladesh and Impact on High Food Commodity sets. pdf. http//www. bdprices. org/journal/jun_10/meu_jun_2010. pdf 4. Bangladesh Economic Update, (2011). http//www. unnayan. org/reports/meu/june_11/meu_jun_2011. pdf. 5. Consumer Price Indexes, (April 2011). http//www. bbs. gov. bd/home. aspx 6. Engendering Development Through Gender Equality in Rights, Resources and Voice, A co publication of the World Bank and Oxford University Press. 2002 7. Bangladesh Bureau of Statistics. (2011) Inflation & Price trends http//www. bbs. gov. bd/home. aspx Appendix