Limiting purchasing power

Restricting purchasing power

Description

Limiting purchasing power involves implementing measures to restrict individuals’ or groups’ ability to buy goods and services, typically through fiscal policies, rationing, or credit controls. This strategy aims to curb inflation, reduce overconsumption, and address resource shortages by directly influencing demand. By constraining expenditure, it helps stabilize economies, conserve scarce resources, and promote equitable distribution, serving as a practical remedy to problems such as hyperinflation, environmental depletion, and social inequality.