In recent years, the cost of living in some countries has been increasing at a high rate. This essay will provide possible causes of this tendency, and the consequences they may have on society.
One of the primary reasons of the rising cost of living is that a particular country is landlocked. For instance, Uzbekistan does not have direct access to the open ocean, therefore goods from abroad are delivered through neighboring countries with access to the ocean. Accordingly, there are extra costs in transporting goods from abroad, especially for air freight which is frequently used in our country. This increases the final price of products due to transport costs. Another reason is people’s high demand for higher salaries. People complain to the government that the cost of living does not correspond to the given salaries. As a result, despite an increase in salaries, the cost of living will naturally begin to rise as well.
Regarding the effects on society, many individuals cannot cover their basic needs. For example, a person with an average salary about 6 million sums cannot afford a comfortable life. After payments for the utility bills, transports and food, there is no money for education and clothes. For this reason, the quality of citizens’ lives begins to decline. In addition, people take loans for a long period to make it easier to pay on time. They take them as means of surviving, not as investment in businesses. As an example, in Uzbekistan people mainly take loans to buy houses and cars which is conventional situation there. However, there are also people who take loans in order to buy clothes and to do grocery shopping. Consequently, the development of the country’s economy begins to slow.
In conclusion, there are two main reasons of inflation: a country does not have access to the ocean, and the high demand for higher salaries. The effects are that the quality of individuals lives and the development of the government’s economy begin to slow.