So, what is the big newz of the day? Its nothing new! The petrol prices went up again! This is now going up faster than smoke! And the justification - there is no other option. We need to take some tough decisions.
But when it comes to cutting the freebies for parliamentarians, their free gas, free flights and free rides, hotels, entertainment, medical care, there is no option but to continue. Why?
If we check the amount spent in the up keep of the VIPs in India it will be more than what we need to spend on the food security bill. How come this is not being cut? They have no problem there.
when it comes to removing subsidies for household earning more tha 50,000 , the got nothing to say. Increasing diesel prices for private vehicles, we they go nothing to say.
How come increasing petrol prices help? In fact won't it increase the inflation? Will it not give reason for middlemen and businesses to hike their prices in its shadow, even if they are not loosing anything?
Is deregulation really the answer? How is that possible? The high taxes on local manufacturing and pro-import customs regime is not the cause of the problem?
If fall of rupee is the really the reason, what does it mean? We are bringing in too little dollars? If your markets are crashing profits are falling, is it not?
So what should you be doing? Well I am a layman, my guess would be, don't allow import to be too high than exports, because we are loosing rupee [ immediate step, increase quality standards, and high taxes for marginal quality]. Cut operations cost of manufacture in India [ read - cut the red tape, make it easy to set up business, cut taxes on employing people, acquisition of raw materials, buying of machinery and transportation]. Do that for 6 months and I think we should easily be out of this. What say?
Any economy which is dependent on foreign investors and investments what ever be the percentage is like a castle of cards, waiting to fall. If you local investment is not strong there is not much that can be done. For that we need local employment and local manufacture.
Not making political statements, but our politicians across all party lines and our non political politicians are pretty petty to see the writing on the wall.
Times running out!
But when it comes to cutting the freebies for parliamentarians, their free gas, free flights and free rides, hotels, entertainment, medical care, there is no option but to continue. Why?
If we check the amount spent in the up keep of the VIPs in India it will be more than what we need to spend on the food security bill. How come this is not being cut? They have no problem there.
when it comes to removing subsidies for household earning more tha 50,000 , the got nothing to say. Increasing diesel prices for private vehicles, we they go nothing to say.
How come increasing petrol prices help? In fact won't it increase the inflation? Will it not give reason for middlemen and businesses to hike their prices in its shadow, even if they are not loosing anything?
Is deregulation really the answer? How is that possible? The high taxes on local manufacturing and pro-import customs regime is not the cause of the problem?
If fall of rupee is the really the reason, what does it mean? We are bringing in too little dollars? If your markets are crashing profits are falling, is it not?
So what should you be doing? Well I am a layman, my guess would be, don't allow import to be too high than exports, because we are loosing rupee [ immediate step, increase quality standards, and high taxes for marginal quality]. Cut operations cost of manufacture in India [ read - cut the red tape, make it easy to set up business, cut taxes on employing people, acquisition of raw materials, buying of machinery and transportation]. Do that for 6 months and I think we should easily be out of this. What say?
Any economy which is dependent on foreign investors and investments what ever be the percentage is like a castle of cards, waiting to fall. If you local investment is not strong there is not much that can be done. For that we need local employment and local manufacture.
Not making political statements, but our politicians across all party lines and our non political politicians are pretty petty to see the writing on the wall.
Times running out!
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