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  • Category: Miscellaneous

    There is no escape from very high inflation....

    The Government of India has a group of economists and statisticians who always glorify everything. They always talk about the recovery in the economy. The fact is that there is demand stagnation in many sectors of the economy and the rapid growth of the economy is just not possible, as the middle class has shrunk.

    For example, the vast IT sector Managements have recruited the fresh graduates in thousands from the various engineering colleges and have sacked those in the age group of 40-45. These people, with as many as 15 years of experience, are forced to fend for themselves. All this is going on in the name of "competitiveness" and "performance". The facts are otherwise. The IT companies want to cut down cost and have done what they have thought is right.

    The manufacturing sector employees are no different. The increments and the merit payments have not come. The Managements have given an excuse of less demand. The huge emphasis on contract labor is actively encouraged by the Modi administration.

    In fact, the Government of India is so keen on contract labor without any social security. Hence, the economy is not growing, as only the top 10% are still driving the economy. For example, since a huge majority of this comfortable class has stayed at home, the likes of Zomato and Swiggy have made record profits in the past 18 months.

    But the workers of Zomato and Swiggy who work in the field are paid a pittance. This is exactly why the service sector is growing only through the unorganized sector, and the massive number of small eateries are flourishing everywhere.

    It does seem that the middle class have to bear with inflation , as the prices of essential commodities has already gone through the roof, thanks to GST and rising input costs. For example, take branded food products. Nothing is cheap now.

    And the petrol prices have actually increased inflation, though the Government of India keeps on denying this.
  • #748085
    For that matter the inflation is not only dogging India but entire world and in fact the US has warned the oil supplying countries to contain their prices or else face the block out. Yes we the Indians have been bombarded with all round price rise and the salaries of middle class never revised upward. Though the government employees gets the enhanced pay with dearness allowance. The daily labors also enhanced their salaries and thus they are happy but the most battered is the middle class. One thing is sure this kind of price rise happens when the big elections are fast approaching as the companies and the traders need to pay for political parties donations and they cannot escape from it so they are squeezing us with price rise in advance way. So how long is the question being asked by the common man.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #748089
    Recently we have witnessed an irrational price hike all the commodities and behind this many factors are attributable such as excess rains in most of the areas causing wastage of yields but the chief being periodical revision of the petroleum products giving a boost in the rise of the commodity. Government servants have enough reason to cheer for each time the price rises, the same is offset with the release of DA to compensate the hike. The lower end such as labour class, too, have their bargaining skills to get their wages raised depending upon the situation. The only suffers are the middle class who are not likely to get relief from any end.
    Whenever the elections are on the offing, more are the instances of unjustified price hike of the commodities because the traders have to shell out huge money to the parties for meeting their election expenses.

  • #748100
    As far as I know IT companies are recruiting fresh people as they have a lot of requirements. Many senior employees are shifting their loyalties but not getting removed. In my relations circle, I know almost 100 persons who have been employed in the IT industry. They are in different positions in different companies. Many of them are above 40 and they are all drawing around 2 lakhs a month and none of them is asked to go.
    The middle class is the only section that suffers always. They will not get any support from the governments as they are above the poverty level. The earnings they are getting is not sufficient for their routine minimum requirements. They can't compromise on their standard of living. This is the real problem.
    There is a lot of difference in the prices of petroleum products between the states. Diesel is costing almost Rs.11/- per litre less in Karnataka than in its neighbouring state. Andhra Pradesh? This is also a problem and there should be a uniform price policy in all the states.

    always confident

  • #748129

    Inflation will always be there but we have to keep it under control. A minimum amount of inflation is required for the betterment of the economy also. For reducing inflation and keeping it at the minimum some basic strategies are required which many ruling regimes are unable to achieve. It is an unfortunate thing but happens in a real-life scenario. If the Govt goes on increasing the salaries of the Govt employees through pay revisions then it is going to create an imbalance in society and would create a big difference between the salaries between different sectors. Another problem is unemployment. Due to our large population, we are not able to solve this problem also and the unemployed youths are going in wrongful directions creating problems in society. Many companies are preferring robotic solutions rather than hiring people for work and that is adding fuel to the fire. In our country, we have a large production of grains as well as vegetables but there is no way to make it available at the places where there is a shortage of it. The middlemen are creating a lot of problems and earning huge money in the process for themselves. All these factors add to inflation only.

    Knowledge is power.

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