Managing Purchasing Power in Today’s Global Economy: Challenges and Strategic Approaches

Abstract

This paper explores the evolving nature of purchasing power in the context of current global economic dynamics. Drawing insights from the book 'Purchasing Power Management,' the study examines the underlying causes of declining real purchasing capacity among middle and lower-income populations, especially in post-colonial and developing economies. The paper emphasizes the role of inflation, unstable income distribution, import dependency, and monetary policy in shaping modern consumer power. It proposes a conceptual model integrating real income, price levels, and employment factors to better understand this phenomenon. Through a review of global policy practices and theoretical insights, the study provides strategic recommendations for governments to stabilize and strengthen household purchasing power. This includes approaches such as wage indexation, targeted subsidies, price regulation, and local production support. The study aims to provide a structured academic framework to inform policymaking in emerging and vulnerable economies.