Ethics

Topic: Corruption & Inflation

Members:

Christian O. Gonzales

Lee Andrei C. Valdez

BSPT 1

May 23, 2023

II.

Corruption In this country became prominent through the years. Corruption is an example of

misuse of power In the government. corruption is like a virus that can't be killed. That politician does

this kind of mischief for a living. They tend to use the money of the people to their own benefit.

Inflation. Inflation is the effect of corruption, Inflation is the sudden price increase of goods that

is essential for our daily living. This price increase may also cause an increase in the poverty rate of
 the country because of the inadequate of people to afford this type of living.

Inflation and corruption are two interrelated challenges that can severely impact a nation's

economy and its people. Inflation refers to the sustain increased in the general price level of goods

and services over time, eroding the purchasing power of individuals and leading to economic

instability. When corruption exists within a system, it exacerbates inflationary pressures by distorting

market mechanisms and impeding the efficient allocation of resources. Corrupt practices such as

bribery, embezzlement, and fraud not only undermine fair competition but also contribute to higher

prices and reduced productivity.

III.

Corruption - This is commonly seen in the government where the one we vote for is also the one who

does this kind of deed. Here are some examples.

Examples: The past President of the Third Republic Of the Philippines where in they became involved in

many allegations that cause them Impeachment from their positions. You can the list of the Philippine

presidents and their names involved in the allegations.

 Inflation- Refers to the sustained increase in the general price level of goods and services in an

economy over a period of time.

Examples:

Consumer Price Inflation- This is the most commonly referenced type of inflation and measures the

average price change of a basket of goods and services consumed by households. For example, if the price

of food, housing, transportation, and other consumer goods rises over time, it leads to CPI inflation,

reducing the purchasing power of consumers.

Cost-Push Inflation- This type of inflation occurs when the cost of production for businesses increases,

leading to higher prices for consumers. Factors such as a rise in wages, raw material costs, or energy prices

can contribute to cost-push inflation. For instance, if oil prices surge, transportation costs increase, and

businesses may pass on these higher costs to consumers.

Demand-Pull Inflation- This type of inflation arises when the demand for goods and services exceeds their

supply, leading to upward pressure on prices. It often occurs during periods of robust economic growth

when consumers have higher incomes and increased purchasing power. As demand outpaces supply, sellers

can raise prices.

Hyperinflation- Hyperinflation refers to an extreme and rapid increase in prices, typically occurring when

a country's monetary system collapses. This situation can arise due to factors such as excessive money

printing, political instability, or economic mismanagement. A well-known example is the hyperinflation

experienced in Zimbabwe in the late 2000s, where prices skyrocketed at an alarming rate, making the local

currency nearly worthless.

IV.

Addressing both inflation and corruption requires a comprehensive and multi-faceted approach that
combines economic and governance reforms. To tackle inflation, it is essential to implement sound
monetary policies aimed at maintaining price stability and controlling the money supply. Additionally,
investing in infrastructure, education, and healthcare can enhance productivity and alleviate supply-side
constraints, thus mitigating inflationary pressures. To combat corruption, a two-pronged strategy is
needed: prevention and enforcement. Prevention efforts should focus on creating transparent and
accountable systems through the implementation of robust anti-corruption measures. This includes
promoting a culture of ethics and integrity in both public and private sectors, strengthening financial
regulations, and enhancing transparency in public procurement and government transactions.