Rise in prices distorts economic logic

Rising prices make him happy !

rice rise seems to evoke different feelings from the aam aadmi and the Prime Minister. The aam aadmi does not understand the economics of the Prime Minister, for whom rising prices are happy boding. The PM and his team of international economists (less national than international)  see high growth and higher consumption by higher number of people, because of which prices have been rising. He is convinced that people’s incomes have risen and so has consumption.

But there is no shortage of production in essential commodities–in fact, the government has no place to keep the bountiful produce and hence puts it to rot in the open.  Releasing them in the market would tame the prices, which will be bad economics for our ruling economists.

Jacking, manipulating, rigging prices are games the kings of corruption have successfully played in the past 7 years. Yeh Dilli ki loot hai bhaiyaa. Maal maal ki loot hai, loot sake to loot, phir pachitaye hot kya jo samaya jaayegaa chook !

With growth in incomes and consumption, corruption too has grown astronomically. So what?  It is sound economics only for the ruling conglomeration.  One or two court cases against corruption and the economic advisers to the PM have sounded the bugle that business climate has already deteriorated and if this trend is not checked immediately, perhaps business activity may come to a complete halt !   Economic logic?  Now the only remedy is the age old wisdom of India: keep fast for monday to please the Sun God and tuesday to propitiate Mars and wednesday for Guru and thursday for brahaspati and friday for sarva dharma sambhav and saturday for Lord Shani–the only God who can make or mar political destinies. How about joining Anna Hazare(a really non-religious good cause)?

Meanwhile our economist prime minister can extend the same benefit of “tax-free pension” that majority of his team of advisers have been getting from the world bank,IMF  & other UN agencies(after all it is Indian contribution to the UN from which such money comes).

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