I am bit surprised that people are blaming Govt that they have not taken care of middle class/poor people. But the fact is inflation is more of a economic reason and govt can not have full control on this. Definitely oil price is one reason for inflation in India but it is not the only reason. One more reason for inflation is that more money has come into the hands of majority of Indians. In general purchasing power of Indians have increase. If you do not agree compare your current situation with your childhood days. Inflation is rising because demand has increased due to better purchasing power but still there is not much improvement in supply of products especially when it comes to food products.
RE:RE:More Money in the hands of middle class
by ajay bhatia on Jun 09, 2008 10:42 AM Permalink
Dear Arvind
Ask the govt to request to germany for the list of illegal account holders in deutsche bank, it will clear all the oil bills as well as the loans we have borrowed from worls bank
RE:More Money in the hands of middle class
by abhishek Sharma on Jun 09, 2008 10:02 AM Permalink
Correct your figure. Inflation increased before Fuel price hike, How??? So the current Inflation figure is not because of Fule Prices. Next week you will see the effect of Fuel Price. From last month Mr. Chidambaram is singing a song that inflation is becuase of high growth rate. I also heared manmohan saying that it is because of previous NDA Government policies. So I dont know what they are doing from last 4.5 year(Are they following the NDA policies??? )
RE:More Money in the hands of middle class
by Arvind Kumar Singh on Jun 09, 2008 10:11 AM Permalink
Hello Abhishek, same thing I too am saying that it is not due to the oil prices that inflation is going up. It is due to the more demand where as supply is still the same. But why is the demand going up? bcoz of better purchasing power. I remember last year when sensex was going up everyone was praising themselves that they are able to take intelligent decisions and therefore are able to book good profits but when sensex crashed everyone started blaming govt for the loss :) (I too am in loss)
RE:More Money in the hands of middle class
by Lost Indian on Jun 09, 2008 10:33 AM Permalink
Dear Arvind, Sensex has nothing to do with the rise of prices. yes we can say that since people earn more they tend to buy more. For your information only 16 crore people invest in Share markets, does this means that the 16 crore people have increased the buying power of India. This is more of Macro economics. My main question is why are the farmers dying when the global food prices are increasing. The wheat we purhase in Mumbai at Rs. 22 is been sold in UP and Punjab at Rs. 8 probably lower by small farmers. What makes the prise rise from 8 to 22. How come major corporates are making Nett profit growth of over 30% when the local farmer cannot makes its ends meet. Please remember we cannot ignore poor people, no doubt the naxalites and maoist are increasing in the rural belt. We need to wake up. just the rise in sensex and GDP without rise in the basic standards of the lower income group is nothing but failure of a country. India needs to revive its complete working procedures and priorities.
RE:RE:More Money in the hands of middle class
by Arvind Kumar Singh on Jun 09, 2008 11:07 AM Permalink
I very much agree to your point that with increase in prices beneficiaries are not the farmers but the middlemen/banias. I too have good amount of agricultural land but we have hardly made any profit out of that in past so many years. Here is where govt needs to play the role but again it is not a day activity and but they need to improve the full system to benefit the farmers. Instead of waiving bank loans and attracting their votes, govt needs to come up with a definite plan to improve the farmer's current situation.
RE:More Money in the hands of middle class
by Arvind Kumar Singh on Jun 09, 2008 10:59 AM Permalink
I think you mistook my comment on sensex. By that I only meant, for every success people pat themselves but incase of failure we blame the govt.
RE:More Money in the hands of middle class
by Arvind Kumar Singh on Jun 09, 2008 10:01 AM Permalink
Dear Samanta, your answer neither justify your view point nor contradicts my statement. Whenever u do not agree with others statement come up with your views instead of simply using abusive words.
RE:More Money in the hands of middle class
by sudeep on Jun 09, 2008 11:54 AM Permalink
Mr. Singh, if you see... the middle class, they slog for money. they work hard. they work mostly 14-16 hour for the money. so that they can have money to buy the things they wished for when they were kids. Here in middle class also there are categories. not all middle class ppl having that purchasing power. if you are not living in a posh colony then you can see it yourself where still 5 Rs means a breakfast for two. Govt. is criticized because they have failed to deliver even after taking a large sum of taxes. Remember how services taxes increased in last 5 years. if you remember i can tell u figures. how much tax they are taking on petrol? how much services we get it from govt. in return. if only i get the taxes collected from my office employee i can repair the main road of this city. why govt. is failed to do so? why loan soaps to farmer? those farmers who were paying their loan amount, were they fool? they shouldn't have paid and waited for the election. it's a punishment for them because they were honest.
Chidu has misled the PM that oil prices are bound to fall soon and any rise should happen as early as possible. Let's see what Chidu and MMS will do if oil prices cross $150!
RE:Oil Prices
by Sathish N on Jun 09, 2008 09:40 AM Permalink
Chidu has misled MMS?? come on!! MMS knows it all too. They are hand in glove to keep there seat and please ma'am, no matter if an outside still wants to rule our country. What a shame.
They couldn't push the nuclear deal through. They can't control prices and they do populist measures that never remove poverty. They have also ruined the middle class under heavy taxes like service tax and VAT and the stock market is in a tailspin.
Congress should have instead focussed on providing mico credit to poor people and develop country's infrastructure at a fast pace.
This time, it was IPL which must have got some of this money. Companies like Red Chillies, Bombay Dyeing, Deccan Chronicle, etc. were helped to fund the IPL show!
ruined the country and ate and digested all money in last 64 years......all congressis have 4 to 5 bunglows.....bmw's and mercedess's gifted by us.......
RE:all the money is in the congressii assessss......
by Appasaheb Borude on Jun 09, 2008 09:28 AM Permalink
Rightly said. The sooner we realise, better for India and ultimatly for us.
I dont see it. Who devours all. We in India don't have a work culture. We don't feel responsible. It govts money, who cares--the very attitude that is debilitating a good democracy and and lagging India atleast 20 years.
We definitely need some strict laws to set it up. One is performance based salary. Yet, again, u cant teach patriotism, using scrupulously the funds of our own ppl is a form of patriotism... I like these things in Germans. They think their states property as their own, and take care of that as their own,...
Mya be now, we should learn to be strict. Like if a peon in a collectorate office takes bribe, then we should grill the collector without suspending the peon. Then only people at highest position will learn what it means to be the head of an office.
RE:It govts money, who cares
by Appasaheb Borude on Jun 09, 2008 09:32 AM Permalink
Dear the Strict law is in place but, the people who are suppose to implement and enforce the same are not working.
You see in Mumbai, everybody says there are illegal Hutments Hawkers are the problem for Trafiic and hurdle to clean city. But nobody make the people responsible to monitor/ stop the illegal activiry responsible. They are getting their salary and the Chlta Hai attitude
RE:It govts money, who cares
by Sathish N on Jun 09, 2008 09:43 AM Permalink
It is not strict law that we need. We don't need martial law. We need responsible citizenry.
Money always moves in a cycle. It doesn't go out of the cycle. We blame corruption, politicians, bureaucrats, businessmen and so many others that they are looting 'aam janta'. But the fact is the money that goes to them comes back to aam janta in some form or other. It is only time lag that is there in happening this. Inflation is how fast we try to move money in the cycle, it is we who are to be blamed for inflation. Govt. alone cannot do anything.
Is there is thing like loan waiver to the tune fo 72000 Crore in any Economy. It is a shame to the word economy! Just a precendent to 100Bn Indians that if you dont pay back the loans you have taken, one day or the other they will be waived off! What financial sense does it make.
Rather if for FM and PM were truly economist and wanted reforms, they could have very well spent 72000 Crs in upgrading the farm infrastrucutre, create real market for farmers, provide enough seed, fertilizer, water to them.
Congress govt. has given terrible blow to Indian economy, only coming election will tell how their populist schemes will not work!
