Inflation is an economic situation which occurs when the prices you get look good and prices you pay look awful.The United Progressive Alliance government had miserably failed to check the skyrocketing prices of food articles and other essential commodities during these years. It is because of wrong economic policies, including allowing futures (forward) trading in essential commodities.The income of 90 per cent of the country's population is getting drastically reduced because of these wrong policies of the UPA-II government, while the benefits of such policies reached only 10 per cent.Hopes were sky-high, when the Congress-led UPA returned to power with a comfortable majority.The negative list probably runs much longer according to me. One is that the economic reforms agenda has remained stalled. One had expected that with a relatively more cohesive coalition in UPA II, the economic reforms agenda would have moved faster and forward but nothing much has happened on that score.Secondly the government's management of inflation has not been very good and despite many measures and efforts inflation continues to run very high. Thirdly, infrastructure bottlenecks continue to plague the economy.On the agriculture side and the PDS especially not much movement has taken place and of course subsidy is a common problem whether it is the oil subsidies or the food subsidies. Fertilizer subsidy, there is some movement and one hopes it will be taken to its logical conclusion the nutrient based subsidy regime.
Government fighting inflation is like the mafia fighting the crime these days.Our present economy is in terrible shape.Thanks to the inflated food prices,Inflated food prices are hard to swallow for a common man.There is one thing we can all say that inflation - it has completely eliminated the generation gap - we are all crying like babies.There is a vast difference between growth and inflation.Inflation has created a new law of gravity-what goes up gets us down..Trying to curb the inflation by reducing subsidies or raising the taxes is like giving a drunk another drink to sober him up.Increasing taxes to stop inflation makes about as much sense as fanning a fire to cool its heat.How much better off we all would be if quality or equality of living were inflated instead of prices.Thanks to the inflation or dearness we are suffering,it is costing more than ever to live beyond our means.With food,rent,petrol and gas prices so high,when you balance the budget,there is nothing left to budget the balance.
If the Government can't win a war against the unnecessary inflation-than who ? Better act instantly against the culprit before it is too late.You can take the trade and industries support,who are more than willing to support in this noble cause but you have to take the lead and act against the black sheeps immediately.It should not matter how big or influential he is.In a welfare state no individual or group of individuals can be allowed to pursue its own good.They will have to submit some sort of nationailisation either complete or partial.The Government is the best judge of the requirements of the nation. It will be all over for the Government.the day they have the mentality of a business man.Government's motto solely should be to safeguard the common man from the unjustified hardships any cost.
"The concept of the welfare state implies a coalition of the Government of the people in such a way as to enable the two components to travel hand in hand each complimenting the other's efforts for the the promotion of the common objective."SHRI JAWAHAR LAL NEHRU..
The last one year has been truly testing. Global economic turmoil, rising naxal threat and charges of corruption have forced the government into a corner.General trader,public and farmer is unhappy with the policies & poor implementation of the programmes announced.Effective and perfect co-ordination between the Central and State Governments will be quite handy.
Hope & trust that effective governing will be on the agenda of the UPA GOVT otherwise warning antennas needs to be on for them.
THANKS A LOT.
Sajjan Raj Mehta
IPP..KARNATAKA HOSIERY & GARMENT ASSOCIATION