Why the government had failed to control inflation and the cost of food products?

Question

the inflation is rising up every week now, instead of year and ngovernment has failed to control the prices of essential commoditites.Why and what reason?

Answer 1

That isn't the function of government, unless you live in an isolated totalitarian state.

Answer 2

Inflation is a result of unbalanced supply and demand. When demand is higher than supply, inflation occurs. That is a nature thing. The only solution is reduce your demand so the inflation would be gone.

The other factor is the bankruptcy of the Banking system. The poor credit issue will bring the U.S. banking system to bankruptcy. It need Fed to do something. However, Senate stopped it because that involving lots of taxpayers' money and moral issue. e.g. using money of poor to feed those rich people.

The other factor is the Wall Street. The down time will last for five years since now. Government can do little because of free market principles.

Hence, do think for the government; you can only reduce your demand to zero.

Answer 3

govt spends too much maoney on welfare schemes can not control inflation

look at what the reservation is costing india  

Answer 4

The UK government is comprised of a bunch of incompetents who can't even control their own expense accounts.

Answer 5

the government has lost the plot.they would rather bail out business rather than the people.who in their right minds would bail out a bank?who would keep taxes high during a recession?who is quite happy not to do anything about the high cost of domestic energy prices?might i remind all MPs that you are employed by the people of UK to look after us you should all be sacked.any other business you would be fired.

Answer 6

How can government control these macro economics phenomenon like inflation, Business trends, depression or a recession or an economic boom. We all know to enjoy good things and don't pay a price for it. These things are purely cylical in nature so don't worry it will surely come down.

Answer 7

because ,

government is expecting help from others.like 1) nature should help goverment for good rainfall in country. 2) gulf countries may reduce crude oil prises. 3) indian people have to bare some effects of inflation on their day today life .4) people have to pay regular correct taxes as per correct balance sheet of the business. etc,etc ...