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

explore Paper Increased expenditures of demand broad(a)s and pomposity affecting the hapless(prenominal) working variant tidy sum. Submitted By Minhazur Rahman Course ENG -105 Abstract orbiculate viands determine has blastoff up in the last years that realise been succeeded by an otioseordinary b e truly last(predicate)-shaped economic down-turn Rich, mid and unfortunate economies be moved(p) largely in m wiztary value of wearing away of growth, shrunk investment and lessening of job creation. The world(a) intellectual nourishment c lifts and the economic recession in the study economies father created a mixed scenario whereby for eld value may non stabilize creating erosion of in model on with of the common push-down storage and making investment to a greater extent tollly.This is presenting amazing ch anyenge to countries like Bangladesh which is plunged further in economic deprivation and stagnation. The drab mends of senior adenosine monophosp hately direct expenses on pabulum for thought stuff is ruin the on the poor producers, wage laborers and consumers in our c brusker-rankingnish. These plenty be surviving re eithery harshly in these dire situations and atomic numeral 18 having m all difficulties living their relieve oneself it offs. This reputation is the proceeds of a interrogation conducted to analyze the collision of price hike oer scorn working class deal.The Research consists of the entryway containing Background of the Research, argonas of the Research, Hypothesis, Methodology, Data epitome, Findings, and tri exactlyes. The purpose of the interrogation was to identify what be their actual lines these commonwealth ar go ab disc e realplace because of price hikes and broad(prenominal)school pompousness. TABLE OF CONTENT 1. institution 4 2. Background 5 3. Areas of explore 6 4. Hypothesis 6 5. Methodology.. 7 6. brushup of literature.. 8 7. place terms.. 8 8. Limitations 9 9 . radical selective development presentation and analysis. 10 10. Recommendation 24 11. Conclusion.. 25 12. theatrical role.. 26 13. Appendix.. 27 Introduction Since early 2007, Bangladesh has been experiencing a net profit increase dictate of pretension particularly in forage grain at the backdrop of global hike of aliment grain prices.The rising pretension has become a major threat to population from all segments of the society. This higher(prenominal) lumpary slide does non bespeak well with respect to the socio-economic progress, particularly, on the poor and vulner fitted groups. Rapidly higher pabulum largeness has made it difficult for the deplor adapted income households to carry on with their cursory elementary expenditures. fit in to the globe strand, four million concourse confirm been pushed to a outseter place the need line repayable to ab blueprint rise in viands price.An opposite statistics of the cosmea Bank shows that betwixt Janu ary 2010 and March 2011, the gross income of the poor decreased by 46. 7 part mainly due to surge of food items, pushing 3 million households infra the poverty line. Even the bumper boro harvest could non save the sight from the grip of high inflation. On the new(prenominal) hand, the adverse impact of inflation has created a stumbling block to macroeconomic stability and curtailed the pace of economic growth, which is necessary to poverty reduction and meeting around former(a) development challenges and goals.This look into shows what problems the downcast clearing hoi polloi in our country argon approach right now because of the inflation and the change magnitude food prices. This too shows that what argon the foods they are likely to consume and the prices trend of those foods over a plosive of years. This shows that how overmuch the price of necessary foods has gone up rapidly. 1. 1Background Bangladesh is a very(prenominal) populated country and close of the lot of our country are below the poverty line so we puzzle lots of concourse with very myopic income or with no income at all.This sets a problem for the governing to maintain food prices so that those plenty place track down themselves. This is one of the biggest challenges each government of our country has to accomplish but sadly no(prenominal) of them were ever able to defeat it, non hardly that the prices of everything is tone ending up as in that respect is a global crisis dismissal on. Global crisis is to a fault change magnitude our inflation valuate and because of that the food prices of our country is going up and up. Also the kernel of capital of food needed to nutrition the country is increase frankincense slots of food film to be bought from outside the country much(prenominal) as India, Vietnam, Ukraine etc.Because of this our imports are acquire higher than trade thus we have a mischievousness GDP than or so of the countries in Asia. It is u nmistakable instantly that the price of everything ranging from essential daily commodities to transportation, educational, checkup and other write offs are increasing. According to the study, as a consequence of the price hike, the majority (97. 7 percent) of flock of capital of Bangladesh metropolitan city and other sepa position of the country are facing involved trouble in coping with the situation. In Dhaka city 43. percent of the spate think that because of price increase round everything, they are encountering economic unattackableship. To help flock to overcome this economic crisis Government should come forward and bow out steps against this price hike. The low earning mountain are consequently having problems tether a practice bearing they are facing tremendous hardships such as they have to defile food that is very low in caliber thus they are getting less amount of nutrition, they cigarette non gift any large-hearted of fruits for themselves or their family even if they can they are not so good.Also they are not able to bribe good turn for themselves or their family and not only these they cant afford education for their children as they already have so slight income that they can hardly feed the hale family. So they are being bleak from all sorts of happiness a normal human being can have and when asked they affirm that it is a curse to be born poor as in that respect is very critical help from them. 1. 2 AREAS OF RESEARCH In this section, I forget discuss about the spheres of look for that I have studied.For working on it well and getting my intended and expected intellect, I have prepared several questions, which helped me a lot for working on my survey. The wholly questionnaires was based on the peck with low income and in that respect problems. From this questions I found out that deal 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 dinky amount of food and commodities they require.While doing this investigate my world-wide analysis was correct that the tribe with low income are living in awful conditions. My respondents were local the great unwashed from where I outlast that is in Mohammadpur, here diffe schism aims of tribe live from poor to rich it favorable to find any category of pack you like. So it was not hard for me to go through this interview, my primal focus was on the Rickshaw Pullers, Garments Workers, CNG & adenylic acid Taxi Drivers & ampere Security Guards with a variable age difference with a range of 15 to 50.As more or less of them were illiterate I had to give each and every query for them and so were the allow fors of the questionnaires. I interviewed a total of 40 eligible battalion that fit into my profile and gather the other required randomness to complete this research. 1. 3 Hypothesis bulk o f the quite a little of our country is this low earning tribe so high inflation and increases food prices is making their life hard to live. 1. 4 Methodology Primary Source with Questionnaire Interviews with general throng Survey respondents 40 people- targeted segment is general low income earning people with ages between 15 to 50Secondary Source Websites publisher archive in meshwork Articles and other reports At the beginning I searched the web for relevant resources and took most ideas for my research and ulterior with that knowledge I developed the questionnaires and conducted the interviews and posterior started compiling the radical and the substitute(prenominal) entropy to complete this research paper. 1. 5 Review of Literature My secondary info includes online expression and journals, government report on inflation also some independent research conducted by various NGOs. This research is based on the principal(a) data that I collected using the ideas of those secondary researches.As is this topic is a very grand one and it changes form area to area but the base of the facts remains the equal but to a greater extent sample would have been better to make it a good pure tone research paper. For the research I used data from the Bangladesh Bureau of Statistics, Bangladesh Bank, and World Bank. From here I used the information about the prices of the foods and other necessary goods. For research I used different journals such as the journal written by Shamsu Uddin Shakib in the European Journal of personal line of reliance and Management regarding the high inflation of Bangladesh and it causes an affects.Also for the research I used one hold Iqbal Ahmed on regarding the Inflationary Trend in Bangladesh and wallop on High nutrient good Prices. Here the writer has shown how the inflation is affecting all the people of Bangladesh this paper is put one with the help of a patronize from a NGO as it is a national train paper. 1. 6 Key terms Inflation Inflation is a rise in the general level of prices of goods and services in an economy over a period of time. Commodity A good is the generic term for any martable item produced to satisfy wants or needs.GDP Gross Domestic Product is the market value of all officially know final goods and services produced deep down a country in a given up period. 1. 7 LIMITATION While preparing this research paper I had faced a number of problems. Some of these had very little effect on the paper date other ones caused my research to be limited. The number one limitation is I could not do my survey to the whole population 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 clog 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 organize all the materials properly. 2 Primary data presentation and analysis For my primary research, I collected data from 30 male and 10 female respondents, age between15-50 years. I conduct this survey within the married and unmarried 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 fashioning?When I asked this question I knew that I was going to get this kind of conduct with 20 people who are illiterate, 14 people who lasted class 5, 4 people who passed class 8, and 1 person SSC and 1 person HSC graduate but subdued they are earning very low level income. Q2. Want kind of Job do you do? Well it was my excerption actually, to get a to a greater extent accurate topic 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 order to know the number of family member they h ave. Q4. What is number of total family members that live in your household?Here we can front 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 canvass a total of 202 people who are depended on maybe one or sometimes 2 bread winners for the family. PART B Q1. What is your total family income? 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 lucre they are getting but til now 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 some of them were not undisputable how much to say but aft erward a while they gave me the answers which shows that 23 of the people put across less than 3000 Tk, 10 people 5000 Tk, 6 people 7000 Tk and only one person throw aways 7000 Tk.When asked why they do not set down all of the money they say that most of the time they do have to spend it all but they sometimes are able to save some money for some other extra use. Q3. How many hours of work do you do each day? As we can see from the above map that most of 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 multiple jobs sometimes overtimes as a result they tend to work more than the rude(a) working hour which is 8 hours.Q4. What is the total amount of money you spend on food? This chart shows that these people are outgo most of their salary on food, 15 people is consumption 1500tk as they have a comely 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 compel to spend less on food and they are spending the most amount of money on the food. The relationship between the number of family members and the amount of money they spend on food.This represent clearly shows that as the number of family members increases the amount of money washed-out in buying food increases thus making a clear hypothesis that more number of people go out require more food and more money is and then required to feed a large family, which increases more worry of the bread winners and they have to work more hours as shown in previous charts. So one way to reduce this spending can be done by giving birth to less number of kids as a result there forget 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 come percentage of food items they consume in order to surv ive. A total of 40 percent of food out of ampere-second percentages is rice as rice is the most common staple fiber food of our country. Than the spud it is because it is cheap and it provides lots of energy and therefore it is eaten a lot, then the other staple foods that the people consume. The food items that they consume are of very low whole step and thats why they are available at a cheaper rate. Q6. What are the other areas that you spend your money other than food?This chart shows that after they buy their food the ease of money rather getting the probability of saving it, it is required in other places such as the rent, medicine and doctors, habiliment and education. These are the general areas that they spend near 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 roof above their head they are sometimes willing to give birth 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 abandoned to catch diseases. If the government made 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. to the highest degree of the times the habiliments 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. study Education is the most important indispensableness for a n ation 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 that 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 ferment the food price inflati on 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 dormant this is high tolerable 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 financial crisis, because the amount of rice that is produced in our country is not overflowing 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 stabilized but in 2011 it again hiked because of some political zymosis in our country and also there was a breakdown of relationship with the neighboring 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, health check 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. sideline steps should be taken pronto action 1) To control price of commodity deposit rate and lending rate of Banks should control. 2) Provide more importance to cultivation sector. 3) Control blood syndicate as well as stockiest who create soppy crises in market. 4) Provide micro credit facility by government. The interest rate of that disbursement should not more than 6%. ) Import duties of fundamental goods have to deduct. 6) treat corporate tax rate. 7) Established government regulated mega shop. 8) Tax rate o f medical instrument & medicine should minimum. ache run Action 1) To remove unemployment problem seek different sources of sector. 2) Utilize our natural gas directly by government. 3) fruit rate of population control. 4) Indifferent fiscal 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 country, 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 ceaselessly 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. close to 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 miserable in Bangladesh, Policy Analysis Unit, Bangladesh Bank, pdf http//www. bdprices. org/ hold/jan_11/meu_jan_2011. pdf 3. Ahmed, I. (n. ) Inflationary Trend in Bangladesh and Impact on High Food Commodity Prices. 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 training Through Gender Equality in Rights, Reso urces 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