COVID 19 enriched majorities while the minorities suffer.
The current increament in the cost of commodities in the market is alarming bad yet the majorities who are representative of the minorities (politicians) seem to pay less concerned.
This increament before now was tag to be as a result of Covid 19 which interrupted importation and exportation of good and services.
It is expected that with the decrease in the Covid 19 spread I thought their will be a corresponding decrease in prices of price the reverse is the case.
My question remains is their any hope for price decrement.
Governments are doing everything in their power to stabilise the economy and revive and hurting business. Basically all major countries have huge corona relief programs, they are issuing a lot of new debt and insert it into the economy. The money is either given directly to the consumer or the companies in form of tax reliefs. That is why we are not seeing any falling prices.
The governments are doing something to try to help the economy recover, the problem is that they always do the same thing, they printed a lot of money to stimulate the economy but this raised the price of everything just at the moment when a lot of people lost their job or saw their income reduced, meaning that they cannot afford a great deal of products they could before, reducing the sales of those businesses which in return means that everyone needs even more help, forcing the government to print more money, so to me while the healthcare crisis could be overcome during this year I do not believe the same will be true for the economic crisis that is coming.
things like this seem to be a dilemma, where when people lose their jobs and have no income, the government comes and provides assistance, so that it can move the economy back, on the other hand the government prints more money, which I think this will be in the future burden the community because of inflation that continues to occur. Hopefully in the future the government can take wise steps to overcome this
In order to avoid inflation due to the large amount of money printed by the government, it is better to return to Keynes' theory. In Keynes's theory, consumption made by one person in the economy will become income for others in the same economy. So when a person spends his money, he helps increase the income of others. This cycle continues and allows the economy to run normally. When the Great Depression hit, people naturally reacted by holding back on spending and tending to hoard their money.
According to Keyness, the transaction needs are the same as the classical opinion which depends on the volume of goods, prices and constants. But for two more factors, namely the need for precaution and speculation, Keyness argues that the demand for money is also determined by precautionary and speculative factors.
