Topic: How to reduce the price of goods - page 9. (Read 1622 times)

Beyond the two reasons of manipulation and scarcity, the prime reason for the rise in price of each and everything is connected with taxation and corruption. Governments need to be good enough to provide transparency. Most of the governments doesn't have this, and this leads to corruption. When the corruption leads to accumulation of wealth, automatically common men were taxed heavily. This affects the increase in the price of each and everything.

Can you name what goods you refer to? because each goods are different from one to another.

If we talk about fuel, it's 100% because of manipulation and there's no way to reduce the price.

If we talk about foods, you can become a farmer, this will increase the supply of foods and make the price will decrease.

Usually the main cause are only two reasons: manipulation and scarcity.

Increasing production, curbing syndicates of Businessmen, corruption, these will actually bring down the price of food automatically. Not only in Nigeria but also in Bangladesh, the price of food products is increasing at a huge rate. And the prices of all kinds of products, not only food products of Bangladesh, have increased several times. Bangladesh government is trying to control it but is not able to do so. The government of every country wants its people to live in peace, but due to the increase in population and various types of corruption in the country, the government alone is not able to control the prices of food products and other products. But the only way to bring down food prices is to increase production, prevent wastage and curb corruption

While monopoly of the market system is a good way to get the prices up and quality down, healthy competition between organizations have helped deal with that. With competition, the quality of the product is put into consideration so as to please the consumers.
I then the removal of the monopoly some organizations enjoy would have more impact on the quality of product rather than the price.

I think there are other important factors to consider if the prices of goods are to be reduced. An economy that cannot provide for the needs of the people with locally sourced resources would continue to witness the rise in the prices of goods.

Monopoly is just one part of the problem. But the main reason why commodities like food become so expensive later down the line even though the cost of production is cheap as fuck, is due to the logistics. Sometimes the price you pay for gas to have those items delivered to the market for purchase far outweigh the expenses you would incur to have those products created, and if that happens you would have no choice but to add more markup so you don't go under and lose your business.

So to actually help with reducing the price of goods, either you go create your own market by setting up one that's nearby so logistics doesn't have to  be a problem anymore, or find a way for gas/oil to be used efficiently throughout the transport process. For instance, better roads, faster vehicles, and maybe even electric modes of transportation could be looked upon as great solutions/alternatives.

If this is caused by inflation, of course the government must move quickly enough to overcome this so that it doesn't drag on for too long because now there are several methods that can be used by any government to overcome the inflation that occurs in their country. Even though this will not disappear immediately, at least the government is willing to show its efforts to fight inflation to the public so that people's feelings can be a little calmer in such difficult conditions.

The increase in fuel oil such as diesel actually has a very bad impact on the economic sector because the increase in price can cause excessive transportation costs which can result in an increase in food prices which makes it difficult for all people. Regardless of the neighboring country Nigeria or the states there, I think the government needs to move to overcome this as quickly as possible because they themselves definitely know where the basic causes are so that inflation can arise there.

Reality of the society that we do have today on which government would really be always having the control most likely on which if there is really that a monopoly and then its really that been allowed by them then expect that corruption do really happens on which on the time that they are really that benefiting big time then expect that they would really be just letting things to let it slide and go as they pleases and this what really hurts the citizens even more and making living as a struggle specially into those people who do have only sufficient income for their needs and expenses and whatever increase or add up will really be an additional challenge which needs to be faced on.  Somewhat there are goods which prices cant really be that controlled because it would really be basing up with world market and  this is why we cant really be able to point out fingers that
every goods are really that been hoarded with those suppliers just to intend to mark up those prices.

Reducing the price of goods for example food in a country like Nigeria is a complex challenge and there is the issue of monopoly which also contributes to raising the price of goods. So what does the govt of Nigeria have to do to reduce the price of goods? It's quite clear that prices increase due to less number of producers and the large number of consumers. The govt first and on an immediate basis should take serious action against monopolism and to stop it, The second one is to start trade with countries that need investment in the trade sector which encourages other countries to start trade with them, the third one is my views to invest largely in the agriculture section. This sector is not only beneficial for the people but also for the state. When they start trading with other countries they take an interest in the agricultural sector of Nigeria and they start buying agricultural food from them. These are just 3 factors that how they can reduce the price of goods, of course, there are a lot more but the above three are my opinions.

I was trying to find a news related to A Monopoly by private company but I can't seem to find it. All I can find is that energy distribution is indeed in monopoly, but it was by a government's company, and I think's energy distribution monopoly by government is actually a good thing. If OP want's a good discussion that leads to a concrete solution, I think he/she should give more specific and details regarding the monopoly

This is totally different from us, our goods and services are being taxed at 12% called VAT (Value Added Tax), this is one good way to generate taxes from the masses but reflects badly on the poor. The government should start working with the taxes again, revise some tax laws because we're basically using it for a century and the world hasn't been similar for the past 100 years. I think this is also why crypto has been a thing now to the riches, they can easily dodge taxes which is comparably high to the transaction fee on blockchain. If the government impose high taxes on rich people and low taxes to poor people, this will be a new problem for the society making it unfair.

I know little about Nigeria, but I do know that they have a high inflation rate. Same with my country, people are having a hard life with less jobs and opportunities.

It is what it is business is always a business only those people that wants to manipulate the market can actually gain profit and people who supplied them didn't realize their loss well maybe they have their own reasons but government won't actually intervenes on it since they can also benefits to it.

The Nigerian government can do a lot to address the country's high prices. Only if the government desires it. One of them is the government's assistance to farmers in the area through subsidies. What else is there? Perhaps removing the tariff on food imports—these are just some of the things that the Nigerian government can do in light of what is now going on there.

Individuals in Nigeria can also contribute by assisting local farmers in their area. Apart from the Nigerian government's assistance, I believe it is a significant deal for the farmers at this point.

You have pointed out a very good point, citizens of my country also do not pay taxes directly, even small shops do not pay taxes and the government has difficulty collecting taxes directly from the people. But the government does not ignore it and they impose high taxes on companies, that way they collect taxes indirectly from the people.
But if there is a monopoly in Nigeria's food industry, that also causes prices to skyrocket. In my country, electricity is a monopoly business model and when they increase electricity prices we have almost no choice but to accept. Monopoly with government support is misery for the people.

Op well that is you point of view but the high cost of living and increase in the food prices and other commodities are very far from what you are saying. Let me start from the taxation. Nigeria is a country of tax free citizens and that means the citizens are not paying tax directly but they are paying tax like any other  country in the world. Now how the Nigerian government tax the citizens. They tax heavily the manufacturing Companies so the manufacturing Companies in return increase the price of food and other commodities so the citizens pay the tax indirectly. Some people are saying that it is because of the importation of goods and the rise of the dollar.

But as for me all those ones are just Secondary to me  and the indirect tax is the cause of the cost of living in the country.

You already know the cause of the hiking of services lingering to the inflation there in Nigeria that it is based on monopoly and backed up (approved) by the same Nigeria Govt.

Firstly, Monopoly is a marketing structural formula, where  a sole business is characterized to operate by its faction of  businesses .

Monopoly always stands at the advantage of making conciousless incomes in the markets because it faces no competitions.

Now let's look at the nature of the said Nigeria and its effect of a monopoly.
Outcomes of a monopoly to the societies :
* Discourages in innovations: this is an area where innovators or creativities tends of end their abilities to create a produce because they are not aurhorized to exhibit it's potentials due to the nature of a monopoly.
* High hike of good and services: This is an aspect where one as a monopoly has the ability to determine the cost of its services charges without undermining its high rate because it would be tolerated by the patronages where there is no other choice.
* Depreciation of customers patronage: Here, it tends to be minimizarion as a reduction in customers supports where produces are unaffordable by the common or and average society(s).

Monopoly is not harmful to itself but to the customers in the societies.
I will say only a selfish and hubris government would adoption such a monopoly marketing system after considering the challenges to be encountered by the society where demands are more than produces and otherwords produces are more than demands due to the unaffordability of the rising hike of good and services .

Most circumstances, the monopoly is organized and runs by the same government bodies otherwise they legally empowers the monopoly with an expectation of higher returns all to the feeding fats of the government bodies.

The situation of inflations can be beaten or minimized if there is said to be competitive in the markets and production sectors and also with the aids of the government to support an individual with the perspective to render solutions economical solutions to the society.

Food prices continue to skyrocket in monopoly countries, which is not one of the causes because if you look at the Nigerian National Bureau of Statistics (NBS), in a new report, it is said to be due to inflation. The government should be present and not blame the sudden surge in demand and the sharp increase in higher import costs.

Nigerian authorities should anticipate that inflation will remain in the double digits, averaging 17 next year. This economist says high prices are eroding people's savings. Inflation continues to rise and this has pushed Nigerians into poverty. The reason why this is happening. Inflation that is making Nigeria so poor is the fact that food inflation continues to increase from one state to another, from month to month comparison and that is a result of the increase in the price of diesel.Because it is diesel that is used to transport foodstuffs and also the level of insecurity in Nigeria is also making the inflation rate increase. Algeria's food import bill remains one of the highest on the continent.

Op, I think you should have posted this topic in the Nigerian board as Hatchy suggested it would have been more better since the subject of discussion is centered on our country Nigeria.

Now to answer your question, I think presently one of the reasons why the price of food and other things are very very expensive is because our government has allowed the production and distribution of food and other commodities to be solely dependent on a perticular company or should I say a person. For instance, the price of cement as at today is (#5700) that's five thousand seven hundred Nigerian naira this is because the production and distribution of the said cement is done by one man whose name is Dangote.

Now I think corruption is the main reason why the government has monopolized so many things because to I think they stand to benefit from the profits realized by the company since they determine the price they sell such commodities. Until there is competition and general price regulations for things I doubt if the high cost of food items and other commodities will ever be at a reduced price in my country Nigeria.

The government's mistakes in managing food are very painful for those who are unable to meet their needs. There needs to be improvements in management carried out by the government so that people can enjoy the natural resources they have and people must be able to manage the natural resources they have well. Holding a cheap market is a good solution to help people who cannot afford to buy their necessities because the prices of basic necessities are very high. As you said, it is the government's responsibility to control the prices of basic necessities so that they remain stable if the government does not care about this, people who have economic limitations will have great difficulty in meeting their needs.

Price increases often have no serious economic justification. It is simply that suppliers and sellers often seek to maximize their profits on any currency appreciation. How to fight all this? In my opinion, very simply. Either by issuing large fines if the price rise has no reasonable justification, or simply by going to jail.

It's not exactly difficult to figure these things out, but some people try to think up elaborate reasons when the answer is staring everyone in the face. Russia's invasion and ongoing war on Ukraine have had massive impacts on global supply chains, started just after things were getting back to normal after the Covid lockdowns were ending - Putin caused great chaos again for zero benefit. Russia is forever getting weaker in it's current state. Besides that, these two countries were large exporters of food, much of it travelling through the black sea which is now too dangerous to traverse for cargo ships. So not only are crops not being tended due to the state of war, the fields have been ravaged and the farmers are now defending their land from invaders. It's all Russia's fault and will only start to get better when they leave the whole of Ukraine, along with the end of their dictator.