Inflation and Injustice
Inflation and injustice According to Hilfiker (27), economic progression is a phenomenon characterized by constant fluctuations in real prices of goods and services. Thus it remains inevitable for economies to remain operating at full employment, an accompaniment of market equilibriums and disequilibrium. This is because economic forces hardly adjust to disturbances without interventions from the government. Inflation is one of the major contributions to fluctuations in business cycles which unjustly hurt social welfare of the society (Hilfiker 33). The injustices resulting from inflation may be looked at in two folds depending on which entities are affected. However, some individuals gain whenever inflation occurs. For instance, debtors gain at the expense of their corresponding creditors in times of inflation. The discussion thus explores the injustices of inflation. One of the injustices felt is the reduction of the available initial money stocks. The government of the day has contributed majorly to this by implementing policies aiming at regulating currency inflow and outflow within the economy. The objective of governments implementing fiscal policies has in many occasions resulted into massive setbacks (Hilfiker 37). The fiscal policy may be considered injustice since the planned regulation activities cannot be met at the set prices of inputs due to ever changing and unexpected rapid rise in price levels. Consumers are the focused subject of this phenomenon as firms would offset the increased cost of production via the inflated price and thus minimizations of utility due to budget constraint as the currencies lose values implying that fewer bundles would be purchased. This in one way includes workers who are in most cases exempted from creation of economic policies yet the policies developed directly affect the output levels of workers. Work citedHilfiker, David. Urban Injustice: How Ghettos Happen. New York: Seven Stories Press, 2003. Internet resource.