Inflation In The Movie Inflation

demand for a good is high and the supply is low, the price increases. At some point people’s

living.” (Purvis 116). Because of this, the issue of inflation not only caused the rise of numerous,

Ronald Reagan once said, “ In a world wracked by hatred, economic crisis, and political tension, America remains mankind's best hope.”America may be mankind’s best hope, but will it remain that way? America is the beacon for freedom and equality, but with the recent election, it may difficult for us to remain a country full of diversity and hope. In order for the United States economy to prosper, the government must control inflation rates, raise employment rates, and change the current income inequality ratio.

As Patel mentions in the sixth chapter, increasing amounts of food does not equal decreasing amounts of hunger. Amartya Sen did a study case of famines and found that modern famines to not be about the lack of food, but rather the inability to pay for food. The market is not about solving hunger, but is in business to sell products and technology. It is up to the state to address problems such as hunger, not the market’s, but the state hands their responsibility to the market (Patel, 2014).

It is basic economic principle that states that when there is an oversupply of a good or service, prices fall. When there is a high demand, prices tend to rise.

Inflation is the sustained increase in the general level of prices for goods and services in a county, and is measured as an annual percentage change. (Investopedia) During periods of inflation, the prices of products and services will rise. There are several reasons why an economy would see a rise in inflation. Decrease in supplies, corporate deciding to charge more, and consumer confidence are some of the reasons why an economy would see the inflation rate increase. Consumer confidence is when consumers gain more confidence in spending due to a low unemployment rate and wages being stable. Decrease in supplies is when consumers are willing to pay more for a product or service is that is slowly becoming unavailable due to a decrease in supplies. Corporate decisions are when the corporations basically decide

In order to fully grasp the meaning of this statement an understanding of the money supply is necessary. The money supply is defined as the sum of the total circulation of money in the economy including deposits at chartered banks. Monetary economists share the view that there is a direct relationship between the money supply and the average price level of the economy; primarily, an increase in the money supply will cause prices (inflation) to rise. “At the end of 1969 money supply stood at about $28 billion. By the end of [1973] the supply had soared by more than 70 percent to about $48 billion” (Corcoran, 1974). It is this rapid increase in the money supply that resulted in inflation rates as high as 10% in 1974. Table 1 contains data on the percentage increase in the money supply and the percentage increase in the Consumer Price index (CPI) from 1962 to 1973. “The Consumer Price Index (CPI) is an indicator of changes in consumer prices experienced by Canadians. It is obtained by comparing, over time, the cost of a fixed basket of goods and services purchased by consumers” (Statistics Canada, 2015). The table depicts a link between money supply and prices; where the change in the growth of the money supply in one year has an effect on the CPI the following year. For example, the rate

The American economy in the decade from 1970-1979 was a mess. It was so bad that it was named “The Great Inflation of the 1970s”. The Vietnam War was still ongoing and the American people were worried. The main areas of concern for the American people during the 1970s were high unemployment, rising inflation, the energy crisis and an economic recession.

When the price level rises, each unit of currency buys fewer goods and services. Over the long term, unanticipated inflation can cause a number of problems for an economy. Businesses will invest less in long-term projects because of the uncertainty of returns, price information becomes unclear, and consumers will spend more time trying to protect themselves from inflation and less time engaging in productive activities. If the Australia’s inflation rate is above normal range, then its cause for concern. It has impact on various ways in the economy.

Why is inflation bad for the American economy? Imagine going into the popular local food market or gas station several times a week. After a couple of weeks, imagine going into these stores and noticing the prices have steadily increased over the past few months. This is called inflation, and it is causing many problems in the United States. There are three different types of inflation: demand-pull, cost-push, and built-in. Demand-pull inflation occurs when prices increased because of such high demand. Cost-push inflation is when prices surge resulting from high input costs. Built-in inflation is when prices continue to rise after any natural causes. The inflation occurring in America is a demand-pull. Inflation has affected the United

causing serious surplus. These unbalanced demand and supply compel the price of crop to decrease

The famous American economics columnist Hazlitt (1978) has ever said that there is not a problem such as the inflation has been discussed too many times and it is not easy for people to understand.

Inflation tends to hurt those employees in jobs with poor bargaining positions in the labour market - for example people in low paid jobs with little or no trade union protection

Numerous problematic aspects were shown throughout this film that needed to be resolved as quick as possible. It was mentioned that there are no seasons in the supermarket which is a very valid point that not a lot of people notice. All year round fruits are placed on shelves in our supermarkets. Since we are used to seeing this, we never realize that this is odd. For instance, Food, Inc. claims individuals can get tomatoes any time of the year. They are picked when they are green and ripened with ethylene gas. This is similar to apples that are sprayed with thiabendazole which causes birth defects. In order to resolve this is to stop buying conventional fruit. If there is a decrease in sale of these injected fruits it will lead to a decrease in production. A company is not going to continue releasing an item if they are not getting any sales.

I Poonam Pillai hereby declare that the term paper report titled study on Inflation in India that I have submitted is original. I was in regular contact with nominated guide and contacting him for discussing the project.