Theft and inflation are two major issues that have a big influence on civilizations all around the world. This essay tries to investigate the intricate link that exists between these problems, despite the initial impression that they are unconnected. We may learn a lot about the societal forces at work by looking at the origins of inflation and thievery as well as the relationships between them.
Factors contributing to inflation
Price increases, sometimes known as inflation, can be viewed as a steady loss of purchasing power. The average price growth of a set of items and services over time can be used as a proxy for the rate of reduction in purchasing power. A unit of currency buys less as a result of the price increase, which is commonly expressed as a percentage. Inflation can be compared to deflation, which occurs when prices fall but purchasing power grows (Fernando, 2023).
Inflation is fundamentally produced by a supply-and-demand mismatch. Former Fed chair Ben Bernanke defines inflation more precisely in his textbook on macroeconomics with Andrew Abel: “Inflation occurs when the aggregate quantity of goods demanded at any particular price level rises faster than the aggregate quantity of goods supplied at that price level.” Inflation is caused by three factors: production (how much the economy generates), money (how much individuals own or have easy access to), and expectations (what they believe will happen next) (Frick, 2022). Inflation is caused by a number of variables.
– Expansion of the money supply
By putting more money in consumers’ hands, a rise in the money supply is intended to stimulate the economy. Although this can seem like a good change, it might also have a detrimental impact on the economy by raising inflation, for example.
– Disruption in the supply chain
A supply chain disruption occurs when it obstructs the free movement of resources and goods. For example, a lack of supply for a particular item or road congestion leads to significant quantities of commodities being stranded for extended periods of time, often months.
– Ineffective government policies
Government mismanagement can have an impact on inflation. The recent price increases for gas and all commodities are due to government policies (Parker, 2022).
Factors contributing to theft
Theft is one of the most serious issues in the world. Theft happens for some reason.
– Greed
They are never happy with what they have; they always want more, and when they can’t afford it, they steal.
– Hatred
Some people take pleasure in making other people unhappy. They take stuff to upset the other person or to make them depressed.
– Ignorance
They grab something that does not belong to them without thinking.
– Necessity
Some people have no idea where their next meal will come from. They had to steal at times simply to feed their children.
– The high
Some people get a rush from stealing and not getting caught. They do it once, it feels nice, and there are no consequences, so they do it again and again until they are caught or bored.
– Kleptomania
They can’t stop themselves. They usually do not require the stuff they are taking. They may have enough money to pay for the thing, but they would rather steal it. A large number of people are affected by this ailment.
– Simply because it is simpler for them to steal from others than to work hard and earn their own money (Omoniyi, 2015).
The relationship between inflation and theft
The economic pressures created by rising prices are the result of the relationship between inflation and theft. People may be more inclined to steal to maintain their standard of living when inflation outpaces wage growth and erodes the actual value of money (Hogg, 2022).
The link between inflation and theft has far-reaching societal implications. In neighborhoods with increased theft rates, residents’ safety and confidence are often compromised. Law enforcement agencies have considerable challenges while dealing with crime waves. Furthermore, the economic impact of theft on victims can be devastating, exacerbating social disparities (Franchie, 2022).
Conclusion
This study looked at the complex relationship between inflation and theft, shedding light on the underlying factors and their far-reaching societal implications. Addressing these issues clearly needs a multifaceted strategy that includes economic policies, social efforts, and criminal prevention strategies. Understanding the mechanics of inflation and theft is crucial for politicians and law enforcement to create effective solutions and make communities safer and more equitable. In order to inform evidence-based policy, a future study should investigate these connections.
References
Fernando, J. (2023). Inflation. [online] Investopedia. Available at: https://www.investopedia.com/terms/i/inflation.asp [Accessed 6 October 2023].
Franchie, S. (2022). The peculiar relationship between inflation and theft. [online] www.linkedin.com. Available at: https://www.linkedin.com/pulse/peculiar-relationship-between-inflation-theft-firstsecuritynz [Accessed 6 October 2023].
Frick, W. (2022). What Causes Inflation? [online] Harvard Business Review. Available at: https://hbr.org/2022/12/what-causes-inflation [Accessed 6 October 2023].
Hogg, R. (2022). More theft, burglaries and even murders are the unexpected side-effects of rising prices, this criminologist warns. [online] Business Insider. Available at: https://www.businessinsider.com/why-soaring-inflation-spark-more-theft-burglaries-and-even-murder-2022-7 [Accessed 7 October 2023].
Omoniyi, T. (2015). 7 Reasons Why People Steal – MyJobMag. [online] www.myjobmag.com. Available at: https://www.myjobmag.com/square/article/128/7-reasons-why-people-steal [Accessed 7 October 2023].
Parker, H. (2022). Main Causes of Inflation. [online] MintLife Blog. Available at: https://mint.intuit.com/blog/planning/causes-of-inflation/ [Accessed 6 October 2023].
