Thursday, September 16, 2010

Common sense Vs Economics

There was a classic fight between common sense and economics when SC released its verdict on about-to-rot-food-grains. Its not foolish to think that when lakhs of tons of food about to rot , why not distribute it for free to the poor. Why waste food like that in the warehouse.  This was the logic of SC and NGO'S.

But Government has to think it in economic point of view also (After all our PM is an economist ). And their explanation goes like this " If govt distributes free food grains, demand for food grains goes down and then the price of food grains will drop, that will affect the farmers who producing now". I think its right. Because food grains wont go for suicide when are rotten. but farmers do when they go bankrupt. So the primary concern should be farmers.

But this whole issue raised the clash between legislature and judiciary.

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