The current bail out package announced by Govt of India looks like a close imitation of the billons of USD package offered by the Bush administration in the USA. This has to be a cause of concern for the common man. The bail out package seems to favour a particular section of society - those who have milked money from the market by exploiting the loopholes of the erstwhile policies.
The reason the western economies are crashing one after the other is largely due to ultra capitalism favoured by them. To begin with the banks lend money at very low interest rates resulting in easy avalability of loans. This favoured ultra consumerism. A person who could have lived life peacefully with his/her modest means was lured into the vicious cycle of debt by the easily available loans, one after the other. . The common man got addicted to good things in life, which otherwise he could never afford with his modest means. The economy grew at a frantic pace. This model collapsed as people started defaulting, causing a global mayhem.
The bail out package aims at promoting the same culture and to provide a feel good factor among the consumers. The Govt seems to lend a helping hand to the banks and financial institutions who blindly disbursed loans and are now crying foul, to the industries who blindly followed global trends without a foresight, to large industrial houses that went on an acquisition spree and are now finding themselves knee deep in trouble, to the builders and developers who erected townships everywhere following the reality bubble and are not finding buyers now.
Should this not be the time for the Govt to think about the common man , to provide with some alternative source of income to all those who have been/will be rendered jobless due to the meltdown, to atleast see to it that SOME portion of the agricultural relief package announced last year with a lot of fanfare reaches the truely deserved; atleast now with the general election around the corner !!!!!!!!!
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It’s a good article written by you Pankaj, but there is some more things which i wants to add in this article,
ReplyDelete1. The bail out package is not for those who are facing actual financial problem
[i.e. Common man below poverty line] they can’t borrow loan at cheaper rate from Banks.
2. It’s only a political move by UPA before election to gather emotional feeling of
Common man “Vote k badle Note - at cheaper rate.”
3. Our economic structure is different from USA and other Western Countries i.e. we are
overlooking Agriculture Sector which is the back bone of our economy, b’cos the
demand for grains and food never goes downward [leaving some seasonal fluctuations]
I congratulate you for writing such a wonderful article.
Gautam
Its really a good one.
ReplyDeleteYou are right but 98%. Their is always a good and bad effect.
You have covered the dark side
Dont you thing due to this cheaper rate their are many people who can fulfill their need.
(eg: Poor man who wants his child to study)
I agree that we have to pay attention on our back bone that it is agriculture. Bcoz no one can live without food.
Arif
I agree with the other two comments above. If interest rates go down it's affordable to many more.
ReplyDeleteTo my view, every person has ability to think good or bad for himself and businesses are there to lure and make profit from general public. It is us who need to think before buying those commodities. If you are lured by those sparkling deals, it's your fault.
Rekha