What impact does the rise in food prices have on the economy according to Congress
Congress blames the rising food prices on the failed policies of the Modi government.
- The rise in food prices can lead to inflation, as consumers have to spend more on essential goods, impacting their purchasing power and overall spending capacity.
- Increased food prices can also affect businesses, as production costs go up, leading to reduced profit margins and possible layoffs.
- Rising food prices can have a disproportionate impact on low-income households, as they struggle to afford basic necessities, potentially widening the income gap.
- When food prices soar, it can trigger social unrest and political instability, as frustrated citizens may protest against the government or engage in disruptive activities.
- Congress believes that the Modi government's policies, such as inadequate agricultural reforms and mismanagement, have contributed to the escalation of food prices, undermining overall economic stability.
Answered
7 months ago