Cost of living is one of the things that makes people to suffer in a particular country, due to the High rates of goods and services.
Alright now how can we reduce cost of living in a state country or nation? Cost of living in a particular country can easily be caused due to scarcity of goods and services, and the causes of scarcity of goods and services is lack of production in a particular state and when we lack human capital and physical capital in production of goods and services they may lead to scarcity of products which triggers to cost of living to the masses and nation at large.
How to reduce high rate of cost of living
1 Encouraging exportation of goods and services
2 import restrictions
3 Increase in production
4 control in populations
5 Increase in taxation
Encouraging exportation of goods and services;
Right now when a nation begins to export rather than importing goods and services they make more profit from exported product and foreigners will begin to purchase the product with their own currencies, then the country will begins to gain maximum profit from different countries and use it to support their own country and the populace as well and there will be a good standard of living and deflation as well,so it’s very important to export good and services, because it will help to reduce high cost of living.
Because of their are many procedures in times of importation of goods and services ,most especially in times of prising, transportation ,Clarence and many other things that contribute to this importation of goods and services. Now when all this expenditure has been made in importation ,Now when the particular product has reach to the country, all this expenditure made on the goods, will be included , which will leads to high price of that particular product,while selling it in the country …hope you getting the point right now? So when we discourage importation of goods and services from other countries ,it will definitely help to reduce high cost of living .
Increase in production
It is very important to use technology in terms of production, yes human capital is good but physical capital is free stress. When technology are being used in production of goods and services ,it will increase the quantity of goods and services that will be produced in a particular state ,country or nation in all the causes of this particular cost of living are mostly scarcity of a particular goods, when a good is scarce,the price will increases, which leads to high cost of living.
Control in population ;
This is one of the things to consider, when talking about the high cost of living in a particular place. It is very important to control birth rate, count population I mean hold population frequently to know the total number of the people and how everything will be ,in order to satisfy everyone. When there is overpopulation nothing will be in order, there will be high rate of Hunger ,sickness, Death, low standard of living and also high cost of living.
When there is an increase in transaction,there will be high rate of circulation of money at the bank most especially commercial Banks. So when there is an increase in taxation, it will help to fight against high cost of living or inflation in a particular place. Above all mentioned, I think when there is a technology in terms of production it will definitely reduce high cost of living, technology matters ,technology really matters in everything we do, so I think with technology ,we can produce goods in large quantities,and circulate it in many geographical area,for the purpose of satisfying needs.
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