Do you remember when a ₹10 note felt like a mini treasure? You could buy a packet of chips, a soft drink, and maybe even a bus ride home. Fast forward to today, and ₹10 gets you a toffee at best.
For another instance, have you ever caught yourself saying, “Back in my time, we got a full meal for ₹10”? If you haven’t, your parents must have definitely said this. It may sound like an exaggeration, a dramatic conclusion or just plain ranting, but it’s not. There was a time when knowing the cost of everyday items was affordable, with pocket change actually meaning something.
Today? A cup of coffee costs ₹100, and the grocery store is a luxury experience, rather than a basic necessity in life.
So, what’s actually changed? The short answer: inflation. The long answer? That’s where economics comes in. If you’ve recently finished your 12th grade and you’re looking for courses after 12th, then this blog is for you. Whether you want to take up a BA Economics degree, want to find out about what is causing price hikes or simply want to learn about the economics of India, this blog will help you think about money, markets and spending differently. So sit back, relax, and let's link what you spend, study and the workings of the economy.
Why Things Are No Longer Affordable: Economics Tells You Why
Let’s rewind a few decades. A ₹5 note could get you a glass of milk, a newspaper, and leave you with change too. And today? It may barely get you a chocolate.
So what happened? The answer is one of the most powerful forces in economics - inflation.
Inflation Meaning and Real-Life Impact
What is inflation? The basic definition of inflation is the general increase in the price of goods and services over time. This means the money you have will buy you less today than it would have yesterday. Inflation is why gas prices increase, why restaurant checks increase, and why, when you buy your favourite roadside snacks, it costs you twice as much.
Inflation is not just price increases for no reason. Inflation happens for multiple reasons:
- Increase in demand (too many people want things, and there is not enough for everyone)
- Supply chain shortages
- Higher costs of production
- Global economic pressure
These are all things that students learn about if they are enrolled in a Bachelor of Arts Economics or. Degrees in Economics take complex market patterns and conceptualise them into easy-to-understand principles.