October 24, 2: This finiteness often brings sanity in the economic system. Scarcity of crude oil is one such example. Representative Image Can there be a reason to feel happy about finiteness of resources?
But these days, I dread the arrival of the warmer months. Spring and summer are when people take to the roads en masse, which means the price of gas is bound to skyrocket even higher than its current record rates.
June and July could mean higher prices than we have seen in decades. The President and both parties of Congress have ratcheted up the rhetoric to explain why prices are so high and what needs to be done.
But are they pitching the truth? World Demand of Oil Oil executives and Republican politicians would have us believe that the problem with rising gas prices is due to a rise in world demand.
The countries of India and China are growing their economies and so have an increased need for energy. China, India, and other countries have increased energy needs, and their purchases of oil have risen to compensate.
To make matters worse, America is not exploiting its oil resources fully. The President likes to say production has risen under his term, but that is deceiving. Production is up, but not from drilling and not from new permits on public land. Private land used for fracking, the process of liquefying rock and extracting natural gas, is the cause.
Oil drilling permits have not been issued, and there has not been a new oil refinery built since the s.
Scapegoat Wrong, they are incorrect. Demand was high back then too. If robust world demand increases the price of gas, it would not have dropped in late These are people, or companies, that trade oil futures for profits.
Speculators are being blamed for the high price of gas because people believe they are running up the price in order to make a profit. This idea is so strong and persistent, in fact, that Congressman Bernie Sanders of Vermont has written a bill that is designed to stop oil speculation.
He is not the only one to call for an end to speculation either. Columnists, pundits, and even the President have called for its halt.
The only problem is that speculators are not the reason behind high gas prices. Phantom Menace One of the problems faced by politicians and TV pundits is that often they are called on to speak or fix things they know nothing about.
Naturally, and with a public clamoring for quick solutions, this can lead to ineffective or even destructive measures that get signed into law. In order for a group of people to control the price of anything — oil, stocks, currency, gold — they must be able to move the market.
To move the market, they need enough buying power money to control demand for the item in question. But as a group, they do not have that amount of investment dollars. Think of this analogy. Imagine you have a backyard pool. You decide you want to lighten the deep red color, so you pour one gallon of clear water into the pool.
But does the color of the pool change? This is the same principle. There are simply not enough oil speculators to have any significant effect on the large size of the oil market.
The other issue is that most people do not understand what speculators do or how they think. Oil speculators are securities traders.Paragraph on Problem of Price Rise in india Category: Essays, Paragraphs and Articles, National Issues of India On July 25, By Vikash Mehra Price Rise or .
Prices are expressed in terms of money. When the rupee or any other currency buys much less than what it used to, and more is to be paid for practically every item, then the problem of rising prices comes into being. In economic terminology it is known as 'Inflation'. Out of the many problems that are facing India, the problem of rising prices is the most intricate.
Although it is affecting universally, yet it has rendered the life of the poor impossible to pull on and the number of poor in India is far greater than the rich. So it is the problem of the whole. Inflation in India. Inflation refers to the rise in the price of goods and fall in the value of money.
Inflation refers to the problem of rising prices. The problem has been with us for a long time now. The trend of rising prices in India has, in time, aroused dismay, consternation and anger.
Rising Price in India. Article shared by. Today, India is facing many problems – the problem of corruption, the problem of unemployment, the problem of illiteracy, the problem of population, so on and so forth.
The problem of rising prices is one of the most important problems that Indian is facing now. This problem is two-fold to check the. May 23, · Watch video · India’s Prime Minister Narendra Modi has an oil problem. And it’s set to worsen with Saudi Arabia rooting for the commodity to push through the $80 barrier.
rising fuel prices in the.