Wednesday, February 29, 2012

The strike against inflation

strike called by left parties   http://apnewsupdates.com/2012/left-parties-seek-support-to-february-28-bandh/
             |
             |
            V


strike
             |
             |
            V

govt yields to lower the fares
             |
             |
            V

Govt lowers MRP
             |
             |
            V

Less MRP leads to less profits
             |
             |
            V

Less profits kill small and medium business men leading strong hold of big businessmen over market and more unemployment
             |
             |
            V

As working processing units are going down, more farm products will go unsold or lowering the market price of products in general affecting farmer badly
             |
             |
            V

Left parties give their voice for the support of farmers to increase MSP ( minimum support price)
             |
             |
            V

Farmers prefer to sell their products to Food corporation of India at MSP as there wont be any quality check while transaction, leading to more burden on govt
             |
             |
            V

To get money, govt starts increasing the taxes and sell govt bonds
             |
             |
            V

More taxes will throw big chunk of people out of business, people will save less money and more unemployment
             |
             |
            V

To produce money and to curb unemployment , govt needs to employ more factories and companies, leading to more govt employees
             |
             |
            V

More people get govt job means more would worry less if quality work is not done

             |
             |
            V

Less quality of work means, crappy products and services ( Do you remember the service of BSNL 15 years back? ), with increased levels of corruption
             |
             |
            V

The crappy which are not sold in the foreign market leads to foreign exchange crunch leading to fall of rupee and import of  machinery will be costly

             |
             |
            V

After few years nationalization of banks and after lack of foreign exchange to import anything

             |
             |
            V

And then we all run to PV Narasimharao's grave to see if he can save India again
  





1 comment:

Sri Kanth said...

Good analysis.. :-)

May be these things not as simple as you explained but they do happen and the final outcome will be very bad.