Social Effects Of Inflation

Decent Essays
Second: Social effects of inflation: inflation is an economic phenomenon reflects the effects directly on the society and these effects are represented in the following:
1- The first manifestation of inflation is the rise in prices of goods and services on a continuous progressive and this increase as a result of several reasons, which is:
A. The state is working to increase government spending through the issuance of cash leads to an increase in the quantity of money is not offset by an increase in the production of goods and services so the prices of goods and services increase so the number of poor people in the community is increasing.
B. The increase in production costs (increasing domestic and foreign raw materials prices, rising production costs ) leads to a rise in prices.
C. Overflowing in overall demand for goods and services without a corresponding increase in the overall supply of goods and services levels.
2- higher prices reflect negatively on the purchasing power of people with fixed-income and retired employees, The prices increase and their incomes do not.
3- inflation and the high prices lead to leaking a number of children from poor families from their schools and they are forced to working to meet the needs of daily living.
4- Community who faces the phenomenon of inflation is increasing the number of unemployed in it, and it will be a poor community even if it has economic resources because the continuous inflation.
The relationship between inflation
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