How to lead a calm and pleasant life? Cardinal rule – SIXTY THREE; Why should you use a part of the accumulated profit to control inflation?
Why should you use the accumulated profit for controlling inflation? As we discussed yesterday most of the reasons for price hikes, as we see today, are temporary and even momentary. The danger of factoring the additional expenses caused by these momentary effects into the cost of products is that at the very moment the economy respond with a price hike, even after the disappearance of the temporary causes, its effect will continue for long, perhaps it would become permanent, because in the modern economy everything in the supply chain and extended supply chains are strongly related and the inflation in one constituent will cause a chain reaction of inflations and which would result in a different commercial environment with no options for you to undo. It simply means you are making temporary adversities eternal through price hikes. Of course, if one does not have the luxury of accumulated profit, then there would be no choice. Still in such cases public funding for mitigation would not be a bad idea. Such socially responsive strategies are very much required in commerce to ensure a calm and pleasant life for all.