Gunjan Talwani sent the following email day before yesterday:
Gunjan Talwani:How can the citizens of India contribute and prevent value of rupee from falling?
Please suggest few steps.
I think this is a very noble sentiment and you don’t usually see these type of comments where people want to know what they can do to improve the situation, so I was impressed by it, and it got me thinking of what should an Indian do to prevent the value of Rupee from falling?
Buy less gold?
Gold imports were the first thing that came to my mind as the government has said several times that gold imports has burdened the CAD (Current Account Deficit) and they have raised duty on gold several times to slow down gold demand.
One way to slow down gold demand is if the people themselves started buying less gold, so that’s one way to help arrest the Rupee slide, but would this be patriotic?
I don’t think so because gold buying has increased a lot in recent years just for investment purposes and gold is being considered for this because there aren’t really that many alternatives available to Indian investors.
Most people aren’t comfortable with equities (justifiably so), real estate is ridiculously priced, and not everyone can afford that, fixed income options have all negative real rate of returns, and in this environment gold at least promises the hope of real return.
Long term readers know I don’t have any gold in my own portfolio and have never bought any throughout this rally, and my opinion on gold has certainly not changed. I’m merely saying that most people want to choose this option, and it is not greedy or selfish for them to want to protect their money from the high inflation that has been caused by the government policies in the first place.
So, no, I don’t think it is patriotic to avoid gold.
Do not buy diesel cars?
After gold, oil is the second biggest thing on people’s mind when you talk about deficits because of its size, and also because of the various subsidies given in petrol and diesel.
If you are driving a diesel car then you’re benefiting from a government subsidy that punches a hole in the country’s finances, while you enjoy the high view from your SUV. There was a proposal to impose additional excise duty on diesel cars but I don’t think that has been implemented yet.
So, that might be a patriotic thing to do – drive a petrol car, and pay more. Would I do it myself? No, because if there is a policy anomaly then I want to take advantage of it, and the money saved from a diesel car can be used to buy onions.
Do not buy imported goods?
This is the third thing that came to mind – what if people just bought made in India with the hopes of keeping money within the country and lowering the import number so as to control CAD. I don’t think that is very practical if you look at all the things you use in your every day life, and even then it doesn’t solve the underlying problem of slow export growth. It also ignores the fact that we live in a globalized world where the whole world benefits from trade, and that’s not the problem.
Do you see the theme?
The point I’m trying to make here is that the common Indian citizen can take some steps to help the government bring down the CAD, and help the Rupee, but even if they do so they don’t solve the underlying problems like slow exports, policy inconsistencies or economic sluggishness.
I’m of the opinion that the people are the victim of these policies and this is not a situation similar to the 2008 US Housing Crisis where people who bought houses with the intention of selling them at a higher price one year down the line also had some share in the blame for the crisis. The Indian situation is different.
If you don’t attack the roots of the problems which can only be done by government policies then you can’t really find a long term solution to this problem.
Conclusion
I think the root cause of the Rupee decline and the economic slowdown in India is government policies and inaction, and I don’t feel that there is anything the common citizen can do to help this cause since finally policy making and implementation is beyond the public and that’s where the solution lies. This is disheartening and I hope someone can point out practical measures that I couldn’t think of but my assessment is that the government (this or the next) has to take action.
As a citizen… I would like to follow these ways to solve Indian economy… And also I share it these conclusion… To all my friends… And neighbor…
I would like to add one more to this
“Vote and Vote Responsibly”
So that next time we don’t have to worry about issues that the elected govt is supposed to handle.
Ordinance on convicted lawmakers ‘nonsense’, throw it away: Rahul tells own govt
http://www.hindustantimes.com/India-news/NewDelhi/Ordinance-on-convicted-lawmakers-nonsense-throw-it-away-Rahul-tells-own-govt/Article1-1127830.aspx
If Rahul Gandhi says it is ‘nonsense’, only then it is nonsense. If he says it makes sense, then it becomes a law. He or his family members are the only intelligent people living in this country !!
In a landmark step towards cleaner politics, the Supreme Court today directed the Election Commission to provide a button on voting machines to allow voters to reject all candidates in a constituency, starting with the assembly elections this year.
http://www.ndtv.com/article/cheat-sheet/supreme-court-gives-voters-right-to-reject-all-candidates-in-a-poll-424424
Hi Anoop,
What should a common man do when there exists no political will to stop convicted lawmakers, legislators and contestants from contesting the polls ?? The government is just not ready to adhere to even Supreme Court orders, where do we stand as general public or a common man ?? This government does not find support from the opposition to do good things for the country, but it gets everything from within or from the opposition to get food security bill passed or issue ordinances where there is a danger of them losing half of their contestants from contesting the polls.
http://www.livemint.com/Politics/vacnKklkMsq7LiTzLwpmMK/Congress-defends-ordinance-to-protect-convicted-lawmakers.html
My stance has not changed still. You are right to blame the government to pass such a hideous law. But who are these people who elected thieves, murderers and rapists to become their representatives? Isnt that the fault of the people? What people can do is to vote for proper people. If people protest as soon as a convicted person is nominated by a party to contest in an election, they will only change the contestant. This is democracy, we have the responsibility to act. So, we must act. Read my below post for some more elaboration on my views
http://diagrama.wordpress.com/2012/11/21/compulsory-voting-an-analysis/
What are you saying man !! It is really surprising !! Do I have a choice to vote for a good guy between two criminals ?? Do we even get to know who is the Congress or BJP candidate from our area, except a few days before the elections ?? Do you think that Sheila Dixit will listen to me if I object to a convict candidate running in the elections from my area ?? She will change the candidate if we object ?? I wont even get to meet any of these people even for a single minute. ‘Proper’ people contesting in the elections either get murdered or beaten so badly that they withdraw their candidature.
Whatever you have written in your article comes either from the educated people of the government itself or from higher authorities like Supreme Court. How cleverly this corrupt system has ignored the Supreme Court order is in front of us. What the educated people of this government like Rahul Gandhi, Sachin Pilot, Jyotiraditya Scindia, Milind Deora, Naveen Jindal etc. have done in the past 9 years. Have they done anything to clean this system ?? No. Have you ever heard of any sensible thing coming out of Rahul Gandhi in the past 10 years ?? I have not.
We are the same people who were feeling proud of the nuclear test done by Vajpayee’s NDA government. We are the same people who were proud of the good deeds done by our erstwhile President Dr. APJ Abdul Kalam and ashamed of the kind of expenditures done by our erstwhile President Pratibha Patil.
Govt. just need a strong will to ban spitting or littering on the roads, but if it is just not ready to do it, it will keep happening even if I or you keep demanding a ban. Govt. intent is required to make it compulsory to vote, which is simply not there. Govt. can only blame the external factors or the opposition for whatever bad is happening within the country.
Dude, you do not understand the concept of democracy. If you alone will go and tell Ms Dixit she wont listen. But if the whole electorate tells that then it wont be ignored. Adult literacy rate in India was 74% and youth literacy rate was 82% in 2011 census. So, that many people voting is pretty good compared to the 45-50% who turn up.
Its people who do not care to form ward committees and gram sabhas and hold proper agitations. All we want is to sit back and wait for some “leader” to come and do our job. Till then we will keep blaming the “government”.
Democracy is power of majority. Sitting in homes we cannot express majority. Only if everyone comes out of their homes then only majority can be expressed. So, yes, it if the fault of the people who elect the criminals. If both candidates are criminals then DONT VOTE. Just go back home.. If 0% voting takes place then the election will be cancelled. We have very good and honest Election Commissioners. Dont take money and vote. If you do that then you DESERVE such rapists to rule you. Also, the rest 50% who did not vote have no right to blame the government. Since they did not elect these representatives they cant criticize them. These people paid money to public, gave them alcohol, sarees, colour TVs and got themselves elected. Obviously they will make money.. What else can you expect from them?
It is the peoples fault that take money and vote or dont vote at all. Blame them and not the government. Because everyone knows they are corrupt. Still they elect them. Then they talk about not having choice. There is a choice.. Just boycott the elections. Done. But to do that the public must not be corrupt. But that is not the case. Public is corrupt. That is why they will get corrupt representatives to lead them in the government
“All we want is to sit back and wait for some “leader” to come and do our job.”
I can’t miss the irony of this comment. A leader is supposed to lead, by definition. The very definition of an elected representative is for him/her to do the public’s job. So, how is it unfair to expect a leader to lead or to do the people’s job?
If you think majority people in a country, with or without literacy can choose between economic policies, or decide how to structure the financial sector, that is incredibly naive. Only a handful of people will understand policy issues, in all societies. That is just how it is.
Furthermore, you think that corruption is a trait of the masses and hence that is where it should be solved. Whereas, in my view the faulty policies in the past have much to do with developing such a culture. So, I don’t agree with the faulty starting point of public is corrupt, so.. blah, blah. People are the same in every country, India is no exception. Greed exists everywhere. You must ask the question why other countries do not have as much corruption, or when they did, what they did to solve it. And, no, in no democracy did solving corruption require a revolution, but rather leaders who made the correct choices, articulated it to the public, provided leadership, etc.
I will give a response to your comment as soon as you clear my small doubt. If it is a leader that the country needs then why are you not taking that position. As I understand it, there is a position empty for that. Why not lead?
a) I may not be capable.
b) I may not be interested.
c) That does not invalidate where I think a policy is wrong.
d) The position is not empty,
e) How is this relevant?
a) You are very much capable. You are, may be limited by your fear of the unknown. Capability can be developed.
b) If you were not interested, then it will support my theory of people being inherently selfish and lazy. You want others to do your work,
c) I never said it does, Below I have explained my view in detail
d) It is empty. Otherwise you would have said follow “this” person and not “we want a leader”. It is definitely empty, at least to you.
e) The relevance is that I was demonstrating why people do not act on their own. Democracy is about individual power and not monarchy. So, leaders must be made of everyone. Everyone can take lead in what they understand and can do. If you personally set up a Residents Welfare Association (RWA) in your locality (which is actually mentioned in the Municipality Act) then you will be a leader there. You take lead in doing your constitutional duty. If you go and join such an RWA then you take the LEAD in joining that association and working for your neighbours.
Hence, relevance was this. Why wait for someone when you can do it yourself?
b) While I don’t have a problem with being called lazy and selfish, but not all people have that problem. People have careers, families, and other interests. Its impractical to ask individuals to get involved in things that they have no idea about. Just like this topic. Its impractical to ask individuals to spend time understanding basics of rupee exchange rate and CAD, etc. If they do so out of interest, great, good for them and they can participate in the debate at a deeper level. But, if they don’t, it is not fair to call them lazy and it is not unreasonable for them to ask public representatives/elite/leaders to communicate the problem and implement correct policies. Its not an issue of laziness but one of practicality and efficiency. In fact, no person on the planet can know about all aspects of all policies. It is impossible. If that is laziness, I am surely guilty of it and proud of it (on other policies, this one I know a little bit about).
d) Err… how do you know I do not support some leader? You are making wrong assumptions.
e) See the point I made about b. Also, there are other democratic ways of achieving change and personal example setting or self-sufficiency (ala Kalam) is not my favored way of doing it. In fact, self-sufficiency among the middle class has promoted exit from democratic institutions. Criticism (constructive), informed debate, public opinion, etc are my outlet. As well as participating in change petitions that hold representatives accountable.
Actually, there is an easier way to make my point. You are educated and engaged democratically, yet you believe that socialism is just fine and dandy in the Indian context. Which is obviously wrong, given that I kind find a single example of a successful socialist country on the planet. That proves my point about education and engagement not being the key issues. Unless you have the right ideas and a critical mass of elites to back it both in logical debate and in developing popular consensus, education and engagement aren’t going to do squat to fix a country’s problems.
Example of a perfect system? Really? That violates the second law of thermodynamics. It is impossible to have a 100% successful system. The contention of system theories and contingency theories are to same too. For the critical mass of the so called elitist people (while I prefer experts) I would point you to various Public Choice Approaches. Infact, The concept of Good Governance, which forms the most modern focus of the Public Administration depends on the definition of a normal man being able to decide for himself as to what he wants.
Normal man may not understand technical policies, but he sure can understand the effect of those so called policies. He can definitely understand that it is wrong to vote for money. If he does not then such a person will be classified as below-average to mentally retarded. But, statistically , the population fitting average and higher level of IQ is much higher than those below 70. So, it is a safe assumption that they would be able to realise that voting for money is wrong and unlawful. Similarly, it holds true for those who do not vote.
Denying fact and using blah blah will not make it wrong that humans have inherent selfishness. I never said it cannot be overcome but for that you need a change in attitude at a personal level.
Elected representative need not be a leader. Even if he is a by-the-book person, he will design good policies and have them executed. Similarly, a leader need not be a representative.
irrespective of the nuances in my comment, my central theory is that we must act and not wait for anyone to act on our behalf. Because that wont work now. The recent failure of Anna Hazare is an example for that. We are not as suppressed as we were under foreign rule. Hence, we will not fight like how we did long back. No leader can ignite the collective minds of the people since there is no such thing as collective mind.
Read the book “Target 3 Billion” from Dr. Kalam. If you remember his speeches and his addresses to the nation you will realise that he always makes up pledge what we will do for this nation. As individuals and not as a mob or a group or a nation. He understands that revolution is needed at an individual level and not pomp and glory or following one single person. In the PURA initiative, which the book is about, Dr. Kalam envisions of creating self sufficient communities instead of making them follow a leader like a her of sheep.
Mindless expectancy from leaders and avoiding self growth is what is responsible for today’s state. An individual must be self-aware, responsible and must not blindly follow the leader. There are many leaders today. Many are spreading communal violence, Separatism, blind beliefs. But they are truly leaders. They do BELIEVE in their cause and they live their lives for these people. Apart from their misguided philosophies, they fulfill the criteria a very good leader. But, the fault is with the people who follow them. Because, you do not support self growth. You want a leader to do your job. That is detrimental to the nation. Because we are not defined by our leader. Our President is not our leader. Our Prime Minister is not our leader. They are our representatives whom we trust.
Ok, I bow to that unnecessary wall of text…
But, a couple of obvious things:
a) Who said anything about perfection in a system?
b) I said in my other comment that greed is everywhere. Why do you allege that I deny that? In fact, I said that the variable between countries are policies, so why do you ignore the role of policies on outcomes? Some policies and economic frameworks lead to more corruption than others. That is the crux of my argument. Do you deny this?
c) I have been talking about leaders willing to build political consensus and logically debate good policies. How do you conflate this with blindly following leaders?
d) We are talking past each other. You have said nothing about the point I raised.
To me, gold is a hedge vehicle – not an investment. Needless to say, if I were in India, I’d be buying physical gold hand over fist!
With great power comes greater responsibility. govt has great powerso when any failure is there, people have right to blame govt. gold cannot be printed like notes nor it can be artificially priced like real estate. so it is wiser for people to make investment here. helping others is good if any mo ney is left after paying for onions petrol lpg a little entertainmentu and some investment. how many of us are lucky to have spare money after the above routine?
Anoop, what are 3 things you’d recommend people do and that you yourself do in order to help the economy?
1) Not blame the govt.
2) Avoid dead investments.
3) Use substantial part of your income to help others in need, like providing books, tuition fees, etc to those who cannot afford them.
Individually it may not affect that much but it follows similar principles of Democracy. Power in numbers.
Thank you for your response.
Why would we want to prevent an adjustment due to underlying economic conditions? The rupee is only adjusting to fundamentals.
Rupee depreciation is part of the solution. When we say we should import less, well, that is what happens when the rupee depreciates and imports become more expensive. So, where is the problem? I guess we would like to import some things cheaply (essentials), while letting others be expensive (non-essentials), but that just creates other distortions. Because it subsidizes people who don’t need the subsidies, like rich people buying diesel cars instead of petrol when they can well afford it. The same item may or may not be “essential” for a vast chunk of the population.
And, if we prevent the currency from dropping to its natural levels, what does it mean for exporters? For domestic production? For IT companies? As commonly reported, most businesses benefit from rupee depreciation and depreciation is actually expansionary. A falling rupee makes the country more competitive compared to other countries (although in this case all emerging countries have seen similar currency declines, but at least we are still as competitive). The govt does not have an explicit policy for a strong rupee which is why it says it only wants to control volatility, and rightfully so.
A strong currency makes sense only when we have close to full employment and high levels of productivity. I don’t think we are anywhere close to that. So, why would we expect a strong currency? If we truly desire a strong currency, we should instead ask for strong fundamentals, like full employment and a highly competitive, innovative free market private sector (with high levels of productivity).
Citizens can do nothing else but watch Fed moves as well as hope rajan covers up. And next year vote for BJP.
The point is how this government reacted to the requests/pressure tactics of Anna Hazare, Kiran Bedi and Baba Ramdev ??
Simple answer is that when a lot of people participated in the movement the bill was debated and voted upon. The opposition walked out instead of voting even a diluted bill because PM’s accountability was not included. PM is accountable under Anti-Corruption Act as it is and it was plain ego that defeated the bill. People support these Gandhi and Godmen who protect them and create riot when someone arrests them. Why not hold the people accountable? Mob has no face so you cannot blame them so you choose the easier target, the Government.
Autonomy of CBI is being opposed by everyone and not just this government. Even a private member of parliament can move a resolution for the same. But the opposition also didnt do it. Before you get congress vs BJP I tell you I am not supporting anyone here. I am just blaming the public because it is their fault that these people are in power. Until you accept that there can be no change in the state of this nation.
People cannot be held accountable because people do not have the power to change things on their own. People have the power/right to vote and not the power/right to reject or to throw off the elected leaders. Yes, you are right that mob has no face and that is why we blame the government, but that is how it is. It happens everywhere, including good countries or good companies. Shareholders also have the power to vote, but ultimately it is the top management who gets the credit for doing good work or gets blamed for poor performance, poor governance.
Even I am not biased in favour of BJP or Modi or any other party/politician, but we need good and strong leaders like Lal Bahadur Shastri or Sardar Patel or Vajpayee or Modi. Manmohan Singh might be honest, but he is too inefficient to run a government and that is clearly visible. Even during the next elections in May, if people have to choose between the three, BJP, Congress or Third Front, what do they do ?? One of the demands of Anna Hazare was to introduce “Vote to Reject”. Will I get the opportunity to reject or vote for an honest politician like Mr. Suresh Prabhu, if he is not standing from my area during voting ??
Yes, we need to change ourselves also. We have time to play on FB, What’s App, Twitter, follow non-sense celebrities and do all this non-sense on the weekends, but no time to think about our own country or do some good social work. But, it is difficult for a common man to fight all alone. Probably we need a revolution or a revolutionary leader to bring in a change. Also, I have nothing personal against your views.
Waiting for leader is the problem. You dont have to change the country, change whats happening in your municipal ward or Gram Panchayat. That is more than enough to bring a revolution. Change in one person is just change, change in everyone is revolution. But all it consists is individual change.
As for what can or cannot be done after voting, You can always write to your Elected Representative. When Hazare was fasting why did people fast in a ground? Why not in front of the homes of their representatives? If that would have been done then they would have promptly passed the Bill. THAT is what democracy is about. Not a company where power is unequally distributed by design. Democracy is equal power. But you have to take it not wait for a leader to come and give it to you.
How many of those fasting actually understood the Jan Lok Pal bill and whether it was well structured or not? Its not clear if an Athenian mob-based democracy is better than the Roman representative system. At least, it hasn’t been the case in history. It has the risks of tilting more towards populism which is already the case today (probably because the representatives are the same as any mob today). The guys with biggest, most voluble mobs will win. I don’t think that’s wise. While people participation and pressure on representatives is necessary, eventually, we need an open debate system among representatives (and elites) to sift the good ideas from the bad. I guess there is no substitute for an educated citizenry.
Gold buying must and should be reduced as its impact on CAD is real. Its not about patriotism, its about dead investment. That money invested in Gold doesn’t help anyone else. In a nation we must pool in resources to progress. There are many bonds floated by Govt that will give low but definite yields that can be invested into.
Diesel has also been partially regularised and already the Diesel vehicles cost more than the petrol vehicle. Anymore increase in the price will be detrimental to their sales which will affect the economy in a different way.
Also, corruption plays a very important role in the state of economy. So, as a citizen we can also oppose that. Policies are not formed just by the government. Citizens can act as pressure groups to influence them as well. But we dont accept our fault. We must educate ourselves in all matters and give constant feedback to the govt. Buying gold to fight inflation is what uneducated would do and that is exactly what is happening.
Hi Anoop,
The point is how this government reacted to the requests/pressure tactics of Anna Hazare, Kiran Bedi and Baba Ramdev ?? Were their demands unreasonable? Did these guys make any efforts to bring a strong Lokpal bill? Why they refused to include PM under the Lokpal bill, Is PM not a normal guy to be included under Lokpal ?? Why there are double standards when a sexual harassment case is filed against Rahul Gandhi and Asaram Bapu? Rahul Gandhi has been asked to appear in the court many a times in this matter and he is yet to do that. Is he or Robert Vadra any special ??
Supreme Court has issued three to four orders in the recent past which are very favourable for India as a country, but this government is just not willing to accept any of those. Why this government is against CBI’s and RBI’s autonomy? My point is, it is the government’s duty to run this country in a better way. It is the wrong policies of this government or Pranab Mukherjee that we are facing such a bad economic environment. This government is making all the policies for its political benefits and not for the betterment of India or its citizens.
Gold is a preferred investment because other investment opportunities are choked. Its hardly a voluntary decision by the people, nor has it been a bad investment over the lasr few years. So, its not wise to blame people for investing in gold. I don’t think the solution is to make gold imports more expensive. Instead, it should be made less attractive by responsible monetary policy (+ve real rates) and encouraging investment in productive areas of the economy.
Shouldn’t diesel be fully regularised? What impacts are you worried about, if it was done? It makes no sense to subsidize people who can afford the normal costs.
I agree about education. And, that is where we have a traditional problem. Our elite has been socialistic and like frogs in the well, unaware of other countries and the global economy. While we need to put pressure on the govt, it is usually the wrong kind of pressure as the elite does not offer good solutions to a problem. We often lurch from one bad solution to another bad solution.
As I said Gold is dead investment. It does not help economy progress. There are other places to invest. Fixed deposits, banks do give +ve interest rates and that money can be invested for something productive.
Diesel is linked to the transport sector and it drives up the inflation. Dual pricing policy where transport vehicles are subsidized and private consumers are not is a better option according to me. Here too, its not just about diesel, people must use many methods such as public transport, bicycles for short distances, car pooling, etc to save fuel. Recently Dr. Kalam said in his speech, “In India, like most developing nations, there is a great scope for this fifth source of energy. By switching to energy efficiency and household levels the country can save up to 50 per cent of energy consumption”. Which can be easily done. Blaming Govt is easy but at the same time we must also act accordingly. After electing representatives our job is not over. There are millions of things we can do and we have to do.
Besides, LPG was implemented in 1991 with the New Economic Policy. Your frog theory is obsolete. Socialism per se is not bad, every system has to be implemented properly and for that education is necessary. Its not about the system also, its basic interest of people. Of all the so called educated, how many have read the Constitution? Interest is important. Blaming govt makes you escape your responsibility and you do not take interest in the nation.
FD, banks don’t give +ve real return (nominal rate – inflation). Gold is relatively attractive when we have -ve real rates. My point was that policy contributes to the relative attractiveness of gold. People don’t own the responsibility of -ve real rates or choking of other investment opportunities.
It was thought to be obsolete, but its still around. Hopefully not for long. Socialism is not bad. Huh? Totally lost me there.
I agree that blaming govt on a knee-jerk basis is lazy, but if it is based on a reasoned understanding of policy then it is a necessary part of democracy, as you pointed out below in another comment. The key is informed, constructive criticism, and with an understanding of where the parties stand on economic policies as compared to each other. While the people can opt to do the right things by themselves, economic incentives do matter and they are set by the policies which should be held up for criticism, as long as it is based on an understanding of economics.
There are inflation indexed bonds where people can invest to maintain positive real return. I do not deny that policies affect economy, but 99% of blame is put on the government and corruption. A problem cannot be solved without addressing the root cause, which cannot be done without taking the responsibility.
Gold is not obsolete, the invested money becomes obsolete since the gold sits in a locker and not liquid. Yes, none of the philosophies are bad, Democracy is also a philosophy that has failed a number of times. The failure is because people do not care to understand it. You cannot say socialist frogs just like that. It is not a small issue and would require debate at a very great length.
As for your last paragraph, that is what I have been saying from beginning. Add to that the fact that blaming others offers you an easy way out. Education comes from self interest and it is not tied to literacy. Illiterates too are very well aware of such things and make better decisions than the literate ones. Even if it is not a part of the curriculum, daily news papers are enough to educate the people. But whose circulations are more? The sleazy news item carrying ones or the serious ones? People need change first to make any type of system work.
Yep, inflation indexed bonds help. But, there are also things like controlling inflation, removing hurdles for private investment, resolving unproductive public assets, expanding private markets, which need to be done anyway. And, which would help with reducing investments into gold too. There is a cultural bias that we need to get rid of. But, even if people stopped buying gold, they are unlikely to invest into the economy if the policy issues persist. The money will likely end up in real estate speculation or out of the country. The policy issues are central to the problem, gold is a side issue. And, from that perspective, it is entirely proper to blame the govt, on the specific policy issues.
I wasn’t saying that gold is obsolete. I was referring to the socialistic elite. I don’t agree that none of the philosophies are bad. There are some pretty bad ones out there. Plenty of casualties in the Indian experience.
For things like widespread social and cultural reform, indeed the govt can’t be blamed and its up to the masses to educate and make improvements. And, I agree that literacy is not the same as education.
But, policy making is a somewhat, different situation. One cannot rely on the public (educated or not) to necessarily know what makes good national policy. While good ideas will come from anywhere and there will be local examples, etc, but, policy making is to be done with deliberate study and debate between domain experts. In that sense, its important to have good depth and quality among the elite – academia, policy think tanks, people representing economic interests, etc. This is where philosophies matter too. And, why I was pointing out the sins of the old socialistic elite. Leadership plays a huge role, not just in making choices but in getting political consensus and communicating the vision. How many times do we hear of a policy which is the right thing to do but politically unpopular? Right now the policy making process seems arbitrary. Policies get done in a ramshackle deal-making sort of way. The politicians like to retain discretion so they can collect rents when allocating favors. Then the policies can’t even be defended at the CAG. This is where the elite and leaders matter and broader education is not the answer.
Government Baabus have Rs5000-6000 Crore Oil bills who pay we the Indians ???
No need of pointing all these Petrol/diesel , Gold Stories .
The real culprit is the Congress which doesnt want Progress.
Many things are their which I can point out but due to lack of time I am Unable to do so.
Time comes when the whole Nation get prepared to save the country from foreign attack and this time it is foreign economical attack. Indian has to show their patriotism by boycotting/avoiding use of imported items in day to day life. Right from the attack of Alexander Indian had stood up to save the country. This time again mother India is calling for sacrifice from its son & daughter. Are we hearing? Are we ready?