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Inflation the real cause of your empty plate
beiyangu
#1 Posted : Thursday, January 12, 2012 9:54:59 AM
Rank: New-farer


Joined: 7/11/2011
Posts: 50
I want to try and explain why the cost of your plate of food has grown bigger while its size has grown smaller.

First, there was the economic recession experienced the world over, which economists have decided to point at as the cause of everything bad.

The recession made the government to spend billions of shillings trying to save the economy. A lot of that money was not put into productive use, a polite way of saying it reached some people’s pockets and refused to leave.

Then there was the weather, where the rains didn’t come as expected. The result was a poor harvest which reduced us to a net importer of food.

Then of course the escalating global cost of oil and given that petroleum is the primary source of energy, manufacturing, and transport sectors were all affected.

Basically, inflation is a situation in which too much money is chasing very few goods.

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