{"id":1084,"date":"2025-11-06T09:26:00","date_gmt":"2025-11-06T06:26:00","guid":{"rendered":"https:\/\/amaraqar.com\/if-prices-exceed-their-limits-demand-reduction-in-salaries-and-subsidies\/"},"modified":"2025-11-09T21:39:42","modified_gmt":"2025-11-09T18:39:42","slug":"if-prices-exceed-their-limits-demand-reduction-in-salaries-and-subsidies","status":"publish","type":"post","link":"https:\/\/amaraqar.com\/en\/if-prices-exceed-their-limits-demand-reduction-in-salaries-and-subsidies\/","title":{"rendered":"If Prices Exceed Their Limits, Demand Reduction in Salaries and Subsidies"},"content":{"rendered":"\n<p>Based on &#8220;supply and demand,&#8221; excess money in a financial system beyond real production weakens the currency. While price increases may require income increases, incomes reach a balance point between currency strength and value until things reverse, making the increase effectively meaningless.   <\/p>\n\n<p>The theory of inflation and money supply relationship also confirms that &#8220;inflation and money supply are closely linked, as money supply growing faster than the economy&#8217;s real output can lead to inflation.&#8221; <\/p>\n\n<figure class=\"wp-block-image size-large\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"640\" height=\"563\" src=\"https:\/\/i0.wp.com\/amaraqar.com\/wp-content\/uploads\/2025\/08\/IMG_6196.png?resize=640%2C563&#038;ssl=1\" alt=\"\" class=\"wp-image-404\" srcset=\"https:\/\/i0.wp.com\/amaraqar.com\/wp-content\/uploads\/2025\/08\/IMG_6196.png?resize=1024%2C900&amp;ssl=1 1024w, https:\/\/i0.wp.com\/amaraqar.com\/wp-content\/uploads\/2025\/08\/IMG_6196.png?resize=600%2C528&amp;ssl=1 600w, https:\/\/i0.wp.com\/amaraqar.com\/wp-content\/uploads\/2025\/08\/IMG_6196.png?resize=300%2C264&amp;ssl=1 300w, https:\/\/i0.wp.com\/amaraqar.com\/wp-content\/uploads\/2025\/08\/IMG_6196.png?resize=768%2C675&amp;ssl=1 768w, https:\/\/i0.wp.com\/amaraqar.com\/wp-content\/uploads\/2025\/08\/IMG_6196.png?resize=1140%2C1002&amp;ssl=1 1140w, https:\/\/i0.wp.com\/amaraqar.com\/wp-content\/uploads\/2025\/08\/IMG_6196.png?w=1500&amp;ssl=1 1500w, https:\/\/i0.wp.com\/amaraqar.com\/wp-content\/uploads\/2025\/08\/IMG_6196.png?w=1280&amp;ssl=1 1280w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/figure>\n\n<p>In the absence of effective government control over market prices, essential commodities, and the four factors of production\u2014particularly land and real estate\u2014properties become the primary driver and inhibitor of the economy and life, determining income strength and single-handedly breaking the purchasing power of both business owners and clients.   <\/p>\n\n<p>When landowners and real estate owners control a production factor without regulations, they also control the available financial currency and inventory. A single owner becomes more powerful than others and possibly even the current government.  <\/p>\n\n<figure class=\"wp-block-image size-full\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"500\" height=\"375\" src=\"https:\/\/i0.wp.com\/amaraqar.com\/wp-content\/uploads\/2025\/11\/IMG_6808.jpg?resize=500%2C375&#038;ssl=1\" alt=\"\" class=\"wp-image-1081\" srcset=\"https:\/\/i0.wp.com\/amaraqar.com\/wp-content\/uploads\/2025\/11\/IMG_6808.jpg?w=500&amp;ssl=1 500w, https:\/\/i0.wp.com\/amaraqar.com\/wp-content\/uploads\/2025\/11\/IMG_6808.jpg?resize=300%2C225&amp;ssl=1 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/figure>\n\n<p>This dominance becomes evident in the ineffectiveness of government decisions, laws, and measures intended to support people&#8217;s lives and provide a suitable work and production environment. Even efforts to attract local and foreign activities face similar obstacles and fail before the power of a single factor: expensive real estate.  <\/p>\n\n<p>As for the currency and its qualitative purchasing power, it experiences weakness and fragility. Salaries that people receive become meager despite their apparent size (increased digits), useful only for meeting consumer and recreational needs <\/p>\n\n<p>Income with zeros is unable to achieve higher and more important life goals such as financial independence and securing housing and dependents after death. It becomes difficult to launch and sustain quality trade and industry businesses, retirement plans, etc.    <\/p>\n\n<p>Finally, the power of retirement rewards and pensions diminishes, and retirement becomes a phase of inactivity where a person transforms from a productive, useful individual, even if minimally, into a burden on themselves, their family, and society.   <\/p>\n\n<p>All of the above cannot be remedied by repeatedly raising salaries in the absence of preventive measures and controls that eliminate excessive inflation, lest the increase becomes merely an increase in illness. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the absence of effective government control over market prices, essential commodities, and the four factors of production\u2014particularly land and real estate\u2014properties become the most crucial driver and inhibitor of the economy and life, single-handedly breaking the currency&#8217;s purchasing power    <\/p>\n","protected":false},"author":1,"featured_media":1085,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[83,113,38,98],"tags":[74,85],"class_list":["post-1084","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-development-and-economy","category-laws-and-regulations","category-real-estate","category-society-and-life","tag-community","tag-development-and-economy"],"yoast_head":"<!-- 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