In many countries, the cost of living is rising. What effect do higher prices have on individuals and society? And what are better ways for people to deal with the high cost? v.5

It is true that the cost to cover both basic needs is increase in many areas around the world, which undeniably has a wide range of adverse effects on not only people from middle and lower classes but also the society itself. Nevertheless, there are many ways for both the former and the latter to deal with the inflated prices. The most serious problems resulting from the commodities' exorbitant price are the lower living standard for most people in society and the loss of profits of various companies in all economic sectors. As for the former, those whose wealth just sits in the margin of the middle and lower classes are the most suffered from this problem. The high price paid in daily consumption means that they have to spend a larger proportion of earnings to fulfill their basic needs, leaving little for savings or discretionary spending. Furthermore, if the wage fails to catch up with the increased costs, both blue and white-collar workers will have to force themselves to make more money by any means necessary, including gambling or criminal activities. As a consequence, people may have less time to pay attention on enjoyment of life and isolate themselves from other family members, which, in turn, making the lack of happiness and energy a common scene amongst most citizens. Moreover, due to the financial difficulties, lots of customers become more economical thus prefer the affordable products to the lavish ones. In addition, there will be fewer people spending money on leisure activities, such as, playing sport or watching movie, that can economically harm the business of service providers. The decline of consumption and purchasing power can be disastrous for economic growth because of the stagnation and corporate downsizing, which can lead to the increasing unemployment rates. There are several measures can be taken by everyone to solve the aforementioned issues. To begin with, from an ordinary person' s perspective, it is wise to be a smart consumer in the time of escalating prices. For instance, customers should consider all the necessities and check both the price and quality of products before giving final decision. As a result, they can save a huge amount of hard-earned money on unnecessary goods, left of which can be paid for healthcare or entertaining services. From an entrepreneur' s perspective, in order to generate more profit and maintain brand loyalty from buyers, companies should divert their strategic goals. To elaborate, instead of investing money and manpower in producing high-end merchandises, companies should concentrate on mid-range or budget products, which suits the financial capability of customers. By doing this, the revenue gained from the payment for the latter goods will definitely increase and may even eclipse the exclusive ones in the future. In conclusion, although the hike in costs of living can impose a number of problems on living standard for common people and profits of manufacturers and service providers, steps can be taken to alleviate these issues.