From what we read in the news media, our Country is facing economic depression. Even though I do not believe in statistics furnished by news media, I have to accept that we are facing fiscal problems of high magnitude. Economic depression is setting in over the globe, it is a part of natural cycle.
As for our Country, there may be many reasons for this. One of them is high levels of tax evasion and unabated corruption. I am happy that present Government agencies are actively involved in arresting corruption, and punishing the culprits. Unfortunately Corruption has permeated in every facet of activity and run the Country almost at par with Government.
In my opinion, another reason for the recession is speculative pricing. Now we find all trades have fallen to the grip of speculative activity, with prices fluctuate depending on the (urgency of) demand and availability. This is not fair trade practice.This trend is not healthy for nation's economy. I can understand if private players fix the prices based on the demand and supply. But I fail to understand how the Government which should safe guard the welfare of its subjects could indulge in this kind of activity. For instance Railways, which is the monopoly of Government the cost of train tickets are increased when vacant seats are allotted to the last minute seekers. Or allow Oil prices to fluctuate on day to day basis. Similarly the cost of Air tickets also fluctuate as per the needs. Following this even cost of cinema tickets change on hourly basis ! This trend was started by the previous Government under the learned Economist Finance Minister, (later became Prime Minister for two terms) who opened up our economy under the able Prime Minister, who was called "Chanakya".
Today, we do not know the real value of our Currency or their purchasing power .
I am not an economist, I know only the basics of economics, that I studied in the College. Where we were given taste of theories of Adam Smith, Alfred Marshall, John Stewart Mill and Keynesian economics. All are British Economists. Their theories are centered around human welfare, and not necessarily money making by Governments. I feel,time has come to the brush up Keynesian theory. Keynes advocated for increased government expenditures and lower taxes to stimulate demand and pull the economy out of the depression in 1930 in UK.
Since we are facing similar situation now, out think tank should come out of the textbooks theories and offer pragmatic solutions.
Perhaps I am a conservative in thinking. I would suggest we should go back to the wise words of our own Economist Kautilya (Chanakya) who wrote Arthasastra, which is ancient treatise on Statecraft, Economic policy and Military strategy.
It is my view that each Nation has to evolve its own system of Governance and finance management. India with second largest population in the world is unique in many ways. Copying western or American theories will not work in our Country.
I wish learned members of Tamil Brahmins Forum can take-up this important subject and offer their suggestions without mixing politics.
Brahmanyan
Bangalore.
