Like God, or a parent. I am not joking, thats how we see govt.
For most of us govt is so powerful that, it can do anything. It is so powerful it can produce gold and currency with a wish. But thats not reality, govt is just like head of a family who manages things, or the house wife who manages finances.
Probably we should start seeing govt as a company. You cant, expect a company to buy raw materials for higher price and sell the final product for lower price and still run with salaries duly paid. Similarly , we cant expect govt to give people subsidized food, oil , travel fare and run programs like NREGA, build projects, maintain roads , military , police, etc etc . The thing is govt cant produce money by just minting more currency. The oil we are using is bought by govt and it used to sell at lower price. The same with food grains. Once the oil subsidy is lifted , the fiscal deficit will go down and govt can build few other things like nuclear reactors.
Of course, we have an argument to counter that. Kill corruption and use that money. Is it? Look at YS Jagan case. When allegations were made on him, his newspaper started spreading false opinions and a section of people are buying and reading it. Though notorious for corruption Lalu Prasad Yadav got elected many times, Raju Bhayya of UP is a criminal but got elected. How could we explain that phenomenon?
For most of us govt is so powerful that, it can do anything. It is so powerful it can produce gold and currency with a wish. But thats not reality, govt is just like head of a family who manages things, or the house wife who manages finances.
Probably we should start seeing govt as a company. You cant, expect a company to buy raw materials for higher price and sell the final product for lower price and still run with salaries duly paid. Similarly , we cant expect govt to give people subsidized food, oil , travel fare and run programs like NREGA, build projects, maintain roads , military , police, etc etc . The thing is govt cant produce money by just minting more currency. The oil we are using is bought by govt and it used to sell at lower price. The same with food grains. Once the oil subsidy is lifted , the fiscal deficit will go down and govt can build few other things like nuclear reactors.
Of course, we have an argument to counter that. Kill corruption and use that money. Is it? Look at YS Jagan case. When allegations were made on him, his newspaper started spreading false opinions and a section of people are buying and reading it. Though notorious for corruption Lalu Prasad Yadav got elected many times, Raju Bhayya of UP is a criminal but got elected. How could we explain that phenomenon?
1 comment:
I would rather see the govt. as a trustee than a company. Difference? responsibility. Companies need not (and often tend not to)have any responsibility towards the employees. Coming to subsidies, how about govt. subsidizing the land prices for the MNCs? I think govt should find a balance with regard to the subsidization policies rather than biasing them for MNCs.
Wanna know your comments on The Shock Doctrine - Naomi Klein
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