Synopsis: Inflation, Food Price, Fuel Price, Basically all Price

☑ No of our political leaders have said that we are suffering from inflation but so it’s the rest of the world. It’s not true, there are a couple of countries in the world that have inflation as high as we do but most of the world has lower inflation. Some countries have inflation below 2% while ours is above 6%. Among the countries would you be interested to know have below 2% rate of inflation are China & Japan. So don’t tell us we can’t manage it. It’s all about leadership.RBI can’t manage it though that’s the job of RBI.

☯ what is this all about?

We are told by business and remember it’s business that raises the price. Workers don’t have control over the price, employers do. Employers who are 1% of the population have the power to raise that the other 99% have to pay without having any role in deciding why they are. There is nothing Democratic about inflation. The only thing they make, call a Democratic because most of the masses suffer from it. Employers can raise the price to offset the extra price burden they face. The workers are never in a comfortable position.
That’s why today the inflation is 6% and what about rate of increase in wages,not even close to inflation.

☯ Explanation employers gives us.

1) Supply Chain Disruptions

2) Inherit Risks- like War, Flood, Drought, Pandemic, Epidemic, etc.

It’s the job of the capitalist to anticipate and manage the risk they should have mastered. In every business school curriculum one of the justifications for capitalist is. Why they deserves big salaries and profits the company generates because they have to manage risk.

Well guess what !

If the inflation is caused by supply chain disruptions or uneven demand/market fluctuations means they are not managing risk. Every capitalist knows that the supplies can be interrupted rains can do that, civil unrest can do that, and an accident can do that. You are supposed to have back plans. You are supposed to have buffer stock so that can keep delivery even when there are disruptions. They are raising prices because it enhances their profits.No risk is going up.

☯ RBI’s way of curbing inflation

The inflation is now attended by raising interest rates.

When you raise interest rates you are hoarding borrowers and who are borrowers..?
Everybody who borrows to buy a – home, car, credit card or for education, and so on. Raising interest rates lacks borrowers. That’s masses of we people.CEOs don’t worry about rising interest rates because they are earning a handsome salary and they have job security too. But if masses of people respond to rising interest rates by cutting expenditure that will destroy many businesses. The inflation destroyed jobs and now rising interest rates destroying jobs. This is the way inflation is managed.

This is an economic system that tells us that it can only solve a particular way and we have to notice that the mass of the people is on the short end of the stick. You can call economic policy all you want but you know what it is. It’s class warfare. The warfare of 1% who are dumping their problems on 99%.