Dangers of frustration spilling all overThe inflation in recent times is just horrible. It must be at least eight percent. However, the interest rates on deposits are coming down day after day. Since the virus fear is a lot lesser in many parts of the country, the small businesses have started to boom. This happens because there is very little money in the hands of people. If someone can offer a roti at Rs3hundreds buy that. In the South of India, people are happy to consume iddlis sold by the roadside vendors at Rs3 apiece.
However, the main issue that there are no jobs at all. Talk to the bankers. There is no fresh recruitment in most public sector banks. The staff are totally frustrated at all levels. Similarly, most teachers in the private schools have lost their jobs or are working for highly reduced salaries. The Government is not giving cash in the hands of people, but talking about the Rs10000 loans to street vendors.
Too much of frustration of so many people will blow over at some stage. We need structural changes to get things done. The Govt should listen to world-class economists and not the half-baked experts within its framework.
The time to act is now.