Sunday, January 16, 2011

Inflation inflation inflation - Result of a failed government

The government is falling out of favor with the common man, and why not. The government seems to care only about the very poor and the very rich.

There is not a single policy in the government's arsenal that works for the common man and now to beat it all, the roof breaking inflation. Prices of everything that impacts the basic living of the common man has just shot up.
  • Petrol gone up and going up twice a month.
  • Onions at more than Rs 60/- per kg are out of reach of the average man.
  • Eggs, clothes, vegetables you name it and you will find that the prices have at least doubled in the last couple of years.
What is the government doing to control the prices? Hmmm... Let's see.

The leaders - PM, FM, AM, HM, EM et al conducted meetings - that end without conclusion.

They have encouraged corrupt practices by not taking any action against even the apparently corrupt like the CWG organizers, Madhu Koda et al who inflate simple projects and gobble up crores of public money.

Last but not the least, the government has brought in futures trading of commodities on the bourses. Futures trading allows traders and investors who have nothing to do with consumption of the commodity to decide its price. The investor just puts in a fraction of the amount and blocks the price. These guys just sit in their AC offices in some posh locality in front of their trading consoles and keep hoping the commodities that they have bid for increases.

Above all, the government has encouraged the rich corporate houses in their act of profiteering while on the other hand it takes action on small traders accusing them of hoarding...
  • Cement sold by Raymonds was at Rs 75 to 80 per bag is now at more than Rs. 200 bag after the company was taken over by a MNC - has the cost of raw material and electricity shot up so much?
  • Corn-flakes used to available in the market for Rs. 10/- to 12/- per kg, but recently an MNC has come into the market offering the corn-flakes for more than Rs. 80/-. What is the level of profiteering?
  • MNCs are offering products with hi-fi price-tags for items which are available in the Indian market for a fraction of the price.
  • The same medical tablet is available in the market right from Rs. 2/- to Rs.20/-. What is the level of profiteering?
There a host of just examples of profiteering based inflation of prices of commodities.
    Mind you the common man has started to realize this. If the government does not show definite performance it will reflect in their votes.