Post
Topic
Board Economics
Re: What is The Negative Effect of Inflation on Household Savings?
by
eightdots
on 19/05/2024, 11:32:29 UTC
In my opinion, the impact of inflation on household savings could be negative if the increase in goods on the market is uncontrolled, thereby reducing purchasing power. However, inflation can have various impacts on society, both positive and negative, depending on a number of factors including the level of inflation and the industrial sector.
Yes, that's right, as you said, if inflation occurs then the impact will be very dangerous for us as a society, of course on welfare, especially for those of us with low incomes, we will have difficulty buying market goods for family needs, and it will also have an impact on traders because of the decline in people's purchasing power to meet family needs, and this will also have an impact on the country in developing a good economy, with inflation occurring the economy will be hampered.
So the impact of inflation will be fatal if this is implemented in a country whose economy is not yet good.
Having a small income will of course make it very difficult to deal with inflation and this will of course have a big impact on economic development in a region and what people can do is have to work harder to be able to meet their basic needs because if they only rely on a small income when it happens Of course we have to be able to restrain inflation because we are unable to meet the basic needs we need.

Households feel this even more when there is a slightest upheaval in the economies of countries. The impact of this situation is especially greater in underdeveloped countries. It is not easy to eliminate this negative effect. The breadwinner of the household needs to work more or find additional resources. If these resources are not found, they will be negatively affected by the effects of inflation.

One of the biggest problems of today's economies is that the efforts of states against inflation fail to achieve results.