The Ethical Repercussions Inflation Has Had on Businesses

Introduction

The effects of inflation have been detrimental to many commercial enterprises worldwide. It is due to prices of the factors of production have increased, resulting in a rise in production costs. The finished product cost usually goes up to provide the means for the company to continue operating profitably. Consumers feel the overall consequences of inflation because it becomes increasingly difficult for them to continue to enjoy the same things they did before the onset of inflation. The following is an examination of an article published in the New York Times by Bubola and Ward (2022) and captioned ‘We Are Literally Sinking’: Britons Face Hard Choices as Prices Soar. This essay will analyze the ethical repercussions inflation has had on businesses and the impacts that inflation has had on consumers and other businesses.

Summary of the Article

The difficulties that have arisen for British citizens as a direct result of inflation are discussed in the article. Bubola and Ward conducted several interviews with customers and business owners in England to get their perspectives on how they have dealt with the rising cost of necessities. They are aware of the hardships that most people in Britain have endured as a direct result of the increased price of the goods and services they use regularly. Additionally, they are aware that certain people are required to forego the use of certain goods and services, which requires them to make difficult decisions. In light of the limited number of sales that have been documented, the authors underline that businesses are not exempt either since they are required to reduce the number of goods that they keep on their premises.

The Premise of the Article

The article’s authors explain the consequences inflation has had and continues to have on the people of the United Kingdom. They provide illustrative examples of various difficulties encountered by individuals in the community and commercial enterprises. Bubola and Ward (2022) argue that recent months have seen a significant increase in the cost of food in Britain. Consequently, residents like Ms. Smith have been forced to forgo certain products, including meat, and instead rely on less expensive substitutes, such as pasta and sauces. Even her children cannot participate in the swimming classes they always enjoyed, and she no longer provides them with money to spend on the recreational activities they once looked forward to participating in with her kids. The authors use these thoughts to depict the current status in Britain as a result of inflation, which is why the article is titled ‘We Are Literally Sinking”: Britons Face Hard Choices as Prices Soar. It is prudent to conclude the article’s premise: “In the past months, as foods have soared in Britain, she has cut down on meat and relied on past and sauce instead.”

Evidence Presented in the Article and its Credibility

The article’s authors state that inflation rose by 10.1% in July, and the essay outlines a scenario in which the prices of items in Britain have risen as a direct result of this increase. This information is supported by Ray (2022), who states that the rate of inflation in the United Kingdom has risen by more than 10 %, which is the most it has ever been in the preceding four decades and a record high. The writers mention the perspectives of British citizens who believe that the shift in political leadership currently occurring in Britain contributes to the price increases. According to Tang et al. (2019), this is akin to the inflation experienced throughout the Brexit period, albeit at a lesser rate than what they are currently experiencing. The high prices and the author’s statement implying an increase in the high inflation rate both serve as evidence and the claim that there has been inflation is supported by Ray, making it credible.

When prices of goods are high due to inflation, consumers find that they have less money available for purchases. The fact that perishable goods are going bad in supermarkets proves that consumers have limited purchasing power, which can be inferred from the information provided in the article. It indicates that consumer demand for items has decreased, which is why fewer sales are recorded. Consequently, businesses are experiencing dead stock, which ultimately leads them to incur losses. In her research, Claveria (2020) identifies one of the primary signs of inflation as a decline in consumer demand for goods. As a result, merchants store fewer of those goods to reduce the risk of experiencing financial losses due to unsold inventory. The spoiled goods brought to customers’ attention at the supermarkets are proof of inflation and lend credence to the scenario, backed by the work of other academics like Claveria.

Verifying the Evidence Presented Independently

Without relying solely on the information Bubola and Ward provide, the above evidence can be verified independently. It would be wise to visit retail shops in Britain and interview customers randomly to verify the evidence objectively and unbiasedly without resorting to bias. Finding additional helpful information that agrees with the message communicated by the two authors makes this possible. Consequently, Claveria (2020) agrees with the information provided because they have researched the topic and provided additional details regarding how inflation can be identified. In addition, Ray (2022) provides further details regarding the current inflation rate in the United Kingdom.

Counterarguments Addressed

The article’s authors emphasize the detrimental consequences of inflation on the people of the United Kingdom. Consequently, the article does not provide a rebuttal to the arguments regarding the effects of inflation. It sheds light on the difficulties everyone faces, including those with low and high incomes, as they all have to keep an eye on how much money they are spending. They paint a picture of small-scale retailers suffering severely from the effects of inflation.

Specific Interests Represented by the Authors

Bubola and Ward’s article aims to educate the average reader on the effects of inflation as British individuals feel it. As a consequence of this, they concentrate on the citizens who are most adversely affected to demonstrate the adjustments and the sacrifices that are necessary for them to deal with the rising prices. They underline the challenges that are experienced by small businesses as well as their major objective in creating the post, which is to showcase their main interest.

Language Used to Develop the Argument

The development of Bubola and Ward’s thesis concerning the inflation that is currently being experienced in Britain is done through the utilization of Concise Language. They illustrate the point they want to make with the help of the few words they employ effectively. In addition, they represent the point they are trying to make with various examples. Consequently, the message is lucid and specific, making it simple to understand and appreciate.

Detecting any Errors in Knowledge, Evidence, or Thinking of the Authors

The authors have conducted an exhaustive amount of research on the subject. To illustrate the argument that they are trying to make, they employ a variety of examples. The authors’ knowledge of the subject matter and their application of evidence and analysis are all totally on point. It, therefore, conveys a clear message demonstrating the problems Britons have been experiencing as a direct result of inflation.

Use of Appeals and Fallacies

Bubola and Ward made considerable efforts to avoid illogical assumptions in their work. As a means of emphasizing their ideas, they conduct interviews with people whose lives have been irrevocably destroyed and rely on factual evidence to support all they say. To make the material as accessible as possible to the largest potential audience, they avoid utilizing specialized language. Considering that it is based on historical occurrences, the message is very compelling.

Conclusion

Given that the article’s first sentence is as interesting as the headline, the piece is compelling. The authors are eager to inform readers of the difficulties encountered by small enterprises and residents in Britain as a result of a 10% spike in inflation. The information is not only understandable to a large number of different readers, but it also has a high level of accessibility. As a consequence, it is an interesting article that provides helpful information on how inflation is harmful to both consumers and businesses.

References

Bubola, E., & Ward, E. (2022). ‘We are literally sinking’: Britons face hard choices as prices soar. The New York Times.

Claveria, O. (2020). Uncertainty indicators based on expectations of Business and Consumer Surveys. Empirica, 48(2), 483–505.

Ray, S. (2022). U.K. inflation hits 40-year high of 10% as it bucks G7 trend-and it’s expected to get worse. Forbes.

Tang, H., McEvoy, A., & Zhang, C. (2019). How the inflation targeting system can deal with the economic effects of Brexit. Economic and Political Studies, 7(1), 1–34.

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