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NOT JUST INFLATION, A NIGHTMARE |
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by Pritish Nandy on Wednesday July 02 2008. |
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| We often refer to terrorism as the scourge of our times. Ever since 9/11, nothing has bothered the world's strongest nation more than the fact that it has not been able to win the war against terrorism. The US has spent trillions of dollars fighting futile wars in Afghanistan and Iraq and bribing Pakistan to be on its side. If Bush could have contested again for the presidency, we would have probably seen a war in Iran as well. A war as unwinnable as the wars in Afghanistan and Iraq. All it would have done is bred more angry young Muslims-- black, white and brown-- devising even more devious ways to show their wrath against the world at large.
We know how traumatic this can be. We have been the world's worst victim of terrorism. So inured are we to it by now that after the last bomb blasts in Jaipur, we were back on our feet in 48 hours, playing the IPL, reassuring tourists, assuaging the Sensex. Even though some Muslims were picked up for questioning, there was not a single attack on the Muslim community. On the contrary, media reported how Muslims were among the most active in providing assistance to the blast victims. Rajasthan, being a BJP ruled state, could have easily reacted like Gujarat. But it didn't. The Gujjar violence last month left a bloodier trail. More tourists were turned off by that agitation than by the bomb blasts. Terrorism, in that sense, has become a normal risk. Like floods, drought, quakes.
Sounds strange? Not really. More Indians are killed in road accidents than in bomb blasts. We are hurt more by inflation than terrorism.
Never in my life have I seen such a scary scenario and such an effete Government response. What's worse, every official statement repeats the same nonsense: We must sacrifice growth to control inflation.
Nonsense. No law of economics demands a nation's growth be slowed down to tame prices. What is doubly strange is that the Government talks ominously about economic slowdown but proudly declares that tax collections are at an all time high. We know why. The aggression that should have shown to fight back inflation has been directed towards collecting taxes instead.
Add to that the fuel price rise. Built into that rise is a bonanza for tax collectors. For the higher fuel prices go, the more the State earns in taxes and duties. Yes, some states have nominally cut sales tax as a political gesture. But several have refused to budge despite the prime minister's repeated pleas. This has left us gasping because the fuel price rise, which could have been easily avoided by tax and duty cuts, has pushed up prices all round.
In fact, studies show that actual inflation's far higher than declared. You have to simply walk into any shop to experience this.
Everything that the common man uses is doubly expensive today and there's no sign of a let up. In fact, analysts say inflation's likely to get worse in coming months. Meanwhile, the stock market's in stupor. FIIs are pulling out. Reforms have come to a standstill. New investors are scarce. The rupee has weakened.. We have now reached a stage where it's clearly stupid to keep your money in a bank.
Inflation has rendered it imprudent.
If you think this is normal, think again. Zimbabwe thought it was normal till inflation crossed 1,000,000% this year and the Government was forced to print million dollar notes. Anything less was valueless.
The result? A loaf of bread costs 400 million dollars. Millions are beggared, The middle class has vanished into thin air. Everyone barring the politicians and big business are living on the edge. It's a scary scenario.
No, I'm not saying India will go the Zimbabwe way. Our economy's far more resilient and our corporate fundamentals are still in good shape.
But poor economic governance can kill any nation. And today we have a Government that's more proud of the taxes it collects than the steps it takes to tame runaway prices. Inflation destroys lives, families, jobs, businesses. |
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