NOTE:-
This was written 40 years back. It shows how the bureaucracy can make a show of favouring you while doing the reverse. Making a show of welfare while giving a farewell to your hard earned money.
TO BE OR NOT TO BE was a dilemma faced by Hamlet. We non-heroes do not come across such situations in our humdrum existence. we all have to die sooner or later. Which is better ? Sooner ? Or Later?
The other day, this question arose. I was going through the Family Pension Scheme, 1971. It seems, a lot of effort has been put into this document by a lot of intelligent people. It is therefore but natural that a dim-witted individual like me would have to put in a still greater effort in understanding the various "whereas-es " and " subject to-s " of this stout document. I have put in this effort now.
The idea seems to be to provide for your family in case you die before you retire. You get various benefits from this scheme depending on when you die. In my case, if I die after 7 years after having irrevocably and finally committed myself to this scheme, my wife would get a sum of Rs. 300 per month for a period of 7 years and Rs. 150 per month thereafter upto the time I would have reached my age of retirement of 58 years, if I had lived. In addition to this, she would get a lump sum of Rs. 1000 on account of the authorities failing in their assurance to her that I would live upto my age of 60 years. ( It appears that the authorities do not expect me to live more than 2 years after my retirement )
The above benefits are to be multiplied by a factor depending on my age at entry to this " Welfare " scheme. Those of you who avoided Mathematics in your school may be happy by the mention of this multiplying factor. You are having visions of huge sums of money coming into your wife's hands every month. Let me deflate you therefore. When the multiplying factor is less than 1, the amount gets reduced. And if you are older than 25 years, the factor is invariably less than 1. In my case, for my age of 35 years, it is 0.67 only.
So, in short, here is what my wife would get if I die after 7years, 15years, 20 years, 23 years and so on. I forgot to mention earlier that there is a quid pro quo to be given by the employee in return for this largesse from the government. The government's contribution to my Provident Fund woiuld be reduced by Rs. 25 per month. This means that I am partly or perhaps fully or God forbid more than fully contributing to this supposedly benevolent measure of the Sarkar Mai - Baap.
If I die after 7 years :-
For the following 7 years, my wife would get @ Rs. 300x0.67 per month. The total amount to be received by her during this 7 years would amount to 7 x 12 x 300 x 0.67 = Rs. 168000.
FOR 11 Years thereafter, assuming that my wife would survive that long, the total amount to be received by her @ Rs. 150 x 0.67 per month would amount to
11 x 12 x 150 x 0.67 = Rs. 13200.
Life assurance benefit would amount to 0.67 x 1000 = Rs. 670.
The total benefit thus would be Rs. 16800 + 13200 + 670 = Rs. 30670. as against this, my Provident Fund would be reduced by an amount of rs.25 per month, assumung that there is no increase in my pay. During the 7 years that I would have lived, the amount reduced would be Rs. 25 x 7 x 12 = Rs. 2100. Adding to this the compound interest @ 6 % p.a., the cumulative amount to be reduced would be Rs. 2520.
So, a benefit of Rs. 30670 as against a loss of Rs. 2520 ! Good !
Now, if I die after 15 years, what do I get ?
I, of course, get either Heaven or Hell. i.e. before getting a rebirth to atone for my sins of this birth or reap the fruits of the good deeds done by me in this birth. But my wife would get,
For 7 years, 300 x 0.67 x 7 x 12 = Rs. 16800 plus
For 3 years, 150 x 0.67 x 3 x 12 = Rs. 3600 plus
Life Insurance benefit of a sum of Rs. 670, totalling Rs. 21070 in all as benefits.
As against this, the amount that would be reduced from my Provident Fund would be,
Rs. 25 x 15 x 12 = Rs. 4500. Including interest, this amount would be Rs. 6975 approximately. So, Rs. 21070 benefit against a loss of Rs. 6975. Not bad !
Now, if I die after 20 years, these amounts are Rs. 12670 benefit and Rs. 11160 loss.
In case of my death just before 23 years, they are Rs. 5470 benefit against a loss of Rs. 14400.
And if I die only after my retirement, the benefit is a grand sum of Rs. 2690 as against a loss of a mere Rs. 14400 !
I have thus found an answer to the question that I had posed at the outset and I am drafting an application as under :-
To,
HIS SUPREME SELF, The GOD
Address :- HEAVEN
Dear God,
Having come to know through reliable sources that you decide as to when a person should die, this is to request you to take me off before the expiry of 20 years from now. Otherwise, you see, my poor wife would get less money from the Family Pension Scheme 1971, than what she would have got from my Provident Fund. Of course if you can make it earlier, it would be better. But not earlier than 7 years from now, please. Because than she gets nothing.
You may be receiving applications and even recommendations for a longer life. You may even be receiving lesser but full of entreaty from terminally sick people. However an application for ensuring life upto 7 years from now and thereafter terminating it between 7 and 20 years might be a rarity. The bureaucrats under you might not have drafted rules for such an eventuality and your hands may be tied.
In that case, please dear God, kindly consult your book keeper Shri Chitragupta ( to whom a copy of this application is being endorsed ) and let me know the date when I am scheduled to come to your lotus feet. Please do not, I repeat, do not ask me to consult astrologers. They are not reliable in this matter, at least. They, had, you see, consistently failed in their predictions about my date of promotion.
O ! Divine ! I know that you are very busy these days with the large number of people that our neighbours across the borders have kindly despatched for the salvation of their souls to you recently. But I have to say YES or NO to the Family Pension Scheme within the next 15 days. So kindly treat this as urgent.
Yours Faithfully,
Ramesh Narendrarai Desai
P.S. :- And please dear God, see that my wife lives for another 25 years. Otherwise, you see, the whole exercise would be a wate.
P. P. S. :- I know that people of India have to pay Chai-Pani or Dasturi or Speed Money to you for any favours sought from you. I shall deposit that at any of your branches located in the nearest Temple / Mosque / Church / Gurudwara / Jinalaya /Agiary in the hands of your priestly agent.
FOOTNOTE :-
I do not know who is better at leading you on a garden path ? The Bureaucrat or the Politician ? Both talk of welfare but appear to make you give a farewell to your hard earned money. These so called public servants seem to be under the impression that all the money that the public earns actually belongs to them. It is their goodness that they allow the public to spend some of it.
Showing posts with label Humour. Show all posts
Showing posts with label Humour. Show all posts
Saturday, August 13, 2011
Thursday, August 11, 2011
RULES FOR DEATH
NOTE
This article was written at a time when our LICENCE PERMIT RAJ was at its peak.It reveals the mind set of our buearaucrats (BOOR O CRATS ?). Despite 35 years of passage of time since this was written, there has not been much change. A biradari that treats its own so badly, how can you expect it to treat the public well?
A file once came to me with the following notings:-
It is seen that many people die in service without prior intimation to and approval of the competent authorities. Such a situation throws the administrative machinery out of gear as a new man has to be recruited to replace the dead man. Till such time as the proper procedures are gone through for recruitment which sometimes take two years. In the meantime, the work suffers. Apart from this, on humanitarian grounds, we have to sanction ex-gratia payments to the family of the deceased. This is an avoidable expenditure. If approved,I may put up draft rules for the purpose.
Sd/-
Mrityunjay Roy
Senior Assistant
O.S.
The idea is indeed laudable and I must congratulate Mr. Roy for his initiative in bringing to light, a handicap from which we have often suffered in the past.
You have my wholehearted approval to go ahead with the drafting of the rules.
Sd/-
Amar Deshmukh
Office Superintendent
Sr. Asst.( M.R. )
As desired the draft rules are placed below for scrutiny and approval of the competent authorities.
DRAFT RULES FOR PERMISSION TO DIE IN SERVICE
Short title and extent of application.
1. (i) These rules may be called the rules for permission to die while in service.
Note:- These rules supersede any other rules on the subject that may be in existence.
(ii) These rules shall be applicable to all government and semi-government servants.
DEFINITIONS:-
In these rules, unless there is anything repugnant to the subject or context,
(a) " COMPETENT AUTHORITY " shall mean the headof the department in which the employee is working.
RULES
1) No government servant shall die without obtaining prior approval of the competent authority.
2) When an employee wants to die, he must apply through proper channel well in advance to the competent authority.
3) The criteria for the granting of the said permission shall be as follows :-
a) The employee must have obtained clearance from all the concerned departments. A " No Objection " must be obtained from all the departments. This certificate must be attached to the application.
b) Proper reasons must be given in the space provided for in the proforma of application at annexure " A ". Simply writing that the employee is tired of life shall not be accepted.
c) The employee must repay all outstanding amounts against loans such as Car/Scooter/Cycle advance, loan against Provident Fund, loan for construction of a house etc. before applying for permission to die. " No claim " certificate specifically from the Accounts department in addition to the " No Objection " certificate mentioned in a) above must be attached with the application.
d) Permission to die will be granted by the departmental head after taking into account age, seniority in service, the likely dislocation to be caused by the death of the applicant etc...etc.
e) In case the employee's death application does not fit into the criteria listed above, death will have to be postponed till a suitable amendment to the rules is made.
Sd/-
Mrityunjay Roy
Sr. Asst.
O.S.
Thanks. I donot see the necessity of the note under 1i)since permission to die has never been necessary before. This is a new idea. Hence the note in question may be deleted.
As for applicability, what about members of the armed forces ? Should they apply for and await permission before going to the battlefront ? What about accidental death ? i think you should add some exceptions.
Annexure ' A ' has not been attached.
Sd/-
Amar Deshmukh
Office Supdt.
Sr. Asst. ( M.R. )
The note under 1i) has been deleted. The following is added under 1i) after the words 'to all government servants'
"except members of the armed forces who will automatically be deemed to have been granted permission to die.
Employees dying as a result of unforeseen accidents and murders shall also be exempted"
I trust that this is now in order. annexure ' A " has since been attached.
Sd/-
Mrityunjay Roy
Sr. Asst.
O.S.
Submitted for kind approval.
Sd/-
Amar Deshmukh
Office Superintendent
Under Secretary
What is all this nonsense ? I do not understand why such a permission is necessary and why are we wasting time like this ?
Let us stop bothering about death and get on with life. There is plenty of work to be done of a lot more importance. Returned. May be filed.
Sd/-
Buddhi Heen Singh
Under Secretary
Resubmitted as desired on phone.
Sd/-
Amar Deshmukh
Office Supdt.
Under Secretary
Submitted as ordered. My earlier noting however stands.
Sd/-
Buddhi Heen Singh
Under Secretary
Deputy Secretary
( What transpired between the Deputy Secretary and the Office Superintendent and the Office Superintendent after the Under Secretary's first noting can be imagined. Such matters are usually off the record. )
I have made a few minor alterations/additions. Joint Secretary may kindly get the approval of the secretary. As for the few people who are still not in government service and who therefore evade the provisions of these rules, a bill for parliament is under preparation.
Sd/-
Amarendra Rai
Deputy Secretary
Secretary may kindly approve the draft rules for issue.
Sd/-
T. Trishanku
Joint Secretary
On going through the above notings, I had a hearty laugh; but then, by and by I too started getting worried. Why do all these people ( but one ) consider death to be such a priviledge that they want it to be included in the list of permits and licences being granted by the government ? Surely they must have a feeling that they have themselves become immortal. Was I also immortal ? I had heard that power gives one a delusion of omnipotence. But immortality ?
Anyway, I dis not care if I had indeed become immortal. My worry is how to cure such people of their silly apprehensions. Send them to a Psychiartrist ? But then would the Psychiatrist himself not need admission to a mental asylum after interactions with these people ?
I took the file home and locked it up in a safe deposit vault. then I took a month's leave. I needed the rest. On return, all the frogs in the well, I mean all the officials figuring in the file except Buddhi Heen Singh were dispersed to different departments. B.H. Singh has now been promoted. He had the sense to keep me apprised of the situation when his superior had foolishly ordered him to process the file.
Some day I hope to sit down and analyse the causes of the feeling of immortality. I shall then be able to explain to these children in their own language as to what makes them feel like this. why such fears are groundless and what are the remedies. till then, all that i can say is that they should leave thinking to those who do not get morbid thoughts. If they fear absence of death, it only means that they have not lived life fully. after all, a man who has not even lived, die ? Is not marriage the first prerequisite for getting a divorce ?
This article was written at a time when our LICENCE PERMIT RAJ was at its peak.It reveals the mind set of our buearaucrats (BOOR O CRATS ?). Despite 35 years of passage of time since this was written, there has not been much change. A biradari that treats its own so badly, how can you expect it to treat the public well?
A file once came to me with the following notings:-
It is seen that many people die in service without prior intimation to and approval of the competent authorities. Such a situation throws the administrative machinery out of gear as a new man has to be recruited to replace the dead man. Till such time as the proper procedures are gone through for recruitment which sometimes take two years. In the meantime, the work suffers. Apart from this, on humanitarian grounds, we have to sanction ex-gratia payments to the family of the deceased. This is an avoidable expenditure. If approved,I may put up draft rules for the purpose.
Sd/-
Mrityunjay Roy
Senior Assistant
O.S.
The idea is indeed laudable and I must congratulate Mr. Roy for his initiative in bringing to light, a handicap from which we have often suffered in the past.
You have my wholehearted approval to go ahead with the drafting of the rules.
Sd/-
Amar Deshmukh
Office Superintendent
Sr. Asst.( M.R. )
As desired the draft rules are placed below for scrutiny and approval of the competent authorities.
DRAFT RULES FOR PERMISSION TO DIE IN SERVICE
Short title and extent of application.
1. (i) These rules may be called the rules for permission to die while in service.
Note:- These rules supersede any other rules on the subject that may be in existence.
(ii) These rules shall be applicable to all government and semi-government servants.
DEFINITIONS:-
In these rules, unless there is anything repugnant to the subject or context,
(a) " COMPETENT AUTHORITY " shall mean the headof the department in which the employee is working.
RULES
1) No government servant shall die without obtaining prior approval of the competent authority.
2) When an employee wants to die, he must apply through proper channel well in advance to the competent authority.
3) The criteria for the granting of the said permission shall be as follows :-
a) The employee must have obtained clearance from all the concerned departments. A " No Objection " must be obtained from all the departments. This certificate must be attached to the application.
b) Proper reasons must be given in the space provided for in the proforma of application at annexure " A ". Simply writing that the employee is tired of life shall not be accepted.
c) The employee must repay all outstanding amounts against loans such as Car/Scooter/Cycle advance, loan against Provident Fund, loan for construction of a house etc. before applying for permission to die. " No claim " certificate specifically from the Accounts department in addition to the " No Objection " certificate mentioned in a) above must be attached with the application.
d) Permission to die will be granted by the departmental head after taking into account age, seniority in service, the likely dislocation to be caused by the death of the applicant etc...etc.
e) In case the employee's death application does not fit into the criteria listed above, death will have to be postponed till a suitable amendment to the rules is made.
Sd/-
Mrityunjay Roy
Sr. Asst.
O.S.
Thanks. I donot see the necessity of the note under 1i)since permission to die has never been necessary before. This is a new idea. Hence the note in question may be deleted.
As for applicability, what about members of the armed forces ? Should they apply for and await permission before going to the battlefront ? What about accidental death ? i think you should add some exceptions.
Annexure ' A ' has not been attached.
Sd/-
Amar Deshmukh
Office Supdt.
Sr. Asst. ( M.R. )
The note under 1i) has been deleted. The following is added under 1i) after the words 'to all government servants'
"except members of the armed forces who will automatically be deemed to have been granted permission to die.
Employees dying as a result of unforeseen accidents and murders shall also be exempted"
I trust that this is now in order. annexure ' A " has since been attached.
Sd/-
Mrityunjay Roy
Sr. Asst.
O.S.
Submitted for kind approval.
Sd/-
Amar Deshmukh
Office Superintendent
Under Secretary
What is all this nonsense ? I do not understand why such a permission is necessary and why are we wasting time like this ?
Let us stop bothering about death and get on with life. There is plenty of work to be done of a lot more importance. Returned. May be filed.
Sd/-
Buddhi Heen Singh
Under Secretary
Resubmitted as desired on phone.
Sd/-
Amar Deshmukh
Office Supdt.
Under Secretary
Submitted as ordered. My earlier noting however stands.
Sd/-
Buddhi Heen Singh
Under Secretary
Deputy Secretary
( What transpired between the Deputy Secretary and the Office Superintendent and the Office Superintendent after the Under Secretary's first noting can be imagined. Such matters are usually off the record. )
I have made a few minor alterations/additions. Joint Secretary may kindly get the approval of the secretary. As for the few people who are still not in government service and who therefore evade the provisions of these rules, a bill for parliament is under preparation.
Sd/-
Amarendra Rai
Deputy Secretary
Secretary may kindly approve the draft rules for issue.
Sd/-
T. Trishanku
Joint Secretary
On going through the above notings, I had a hearty laugh; but then, by and by I too started getting worried. Why do all these people ( but one ) consider death to be such a priviledge that they want it to be included in the list of permits and licences being granted by the government ? Surely they must have a feeling that they have themselves become immortal. Was I also immortal ? I had heard that power gives one a delusion of omnipotence. But immortality ?
Anyway, I dis not care if I had indeed become immortal. My worry is how to cure such people of their silly apprehensions. Send them to a Psychiartrist ? But then would the Psychiatrist himself not need admission to a mental asylum after interactions with these people ?
I took the file home and locked it up in a safe deposit vault. then I took a month's leave. I needed the rest. On return, all the frogs in the well, I mean all the officials figuring in the file except Buddhi Heen Singh were dispersed to different departments. B.H. Singh has now been promoted. He had the sense to keep me apprised of the situation when his superior had foolishly ordered him to process the file.
Some day I hope to sit down and analyse the causes of the feeling of immortality. I shall then be able to explain to these children in their own language as to what makes them feel like this. why such fears are groundless and what are the remedies. till then, all that i can say is that they should leave thinking to those who do not get morbid thoughts. If they fear absence of death, it only means that they have not lived life fully. after all, a man who has not even lived, die ? Is not marriage the first prerequisite for getting a divorce ?
Tuesday, August 2, 2011
IS THE INDIAN SOCIETY ANTI - PRODUCTIVITY ?
NOTE :- This article was originally written about 4-5 years before the so called Liberalisation, Privatisation and Globalisation in 1991. India is the only country here public servants proudly declared that they had become liberal to their masters - the people and that too in an ingratiating manner ! Two decades after the event - now demurely called Economic reforms - and GDP growth rate increasing from around 3 % to over 8% it is time whether we continue to be anti-productivity in another guise. The footnote to this article will do that.
Is the Indian Society Anti - Productivity ?
Persons engaged in economic pursuits can be divided into two broad categories viz, :
1) Those engaged in production of goods and
2) Those engaged in providing services.
The second category can be further sub-divided into :
2a) Those engaged in services contributing to production and
2b) Those engaged in providing regulatory services such as i ) the government, be it in the bureaucracy or in the political wing or ii ) religious bodies which tend to regulate the social norms by which people ought to live.
We have one category in addition to the above two which is not pursuing any economic activity except for consumption. They are the aged, the children and the beggars. The aged are being compensated for their past contribution. The children's consumption is our investment in expectation of their contribution to production at a later date. The beggars, especially the able-bodied ones are socially criminals. Even among beggars, there are the honest ones and the dishonest ones who collect donations for various stated purposes but use the money for their personal use. In India this category has a larger population than in other countries.
Any society which is pro-productivity and therefore flourishing, gives far better rewards to persons engaged in category 1) as compared to to those in category 2). Even among category 2) those in category 2a) have better rewards than those in category 2b).
The Indian society has traditionally rewarded the producers badly. In the old days when agriculture was the main productive venture, rewards to the agriculturists were much lower whether in economic terms or in terms of social status than to persons of the regulatory classes such as landlords, religious priests, government servants and so on.
The copndition after independence and industrialization has not changed. We tend to give too much importance to the regulatory personnel whose contribution to productivity is at best marginal if not on the negative side. Look at our political and social set up. The party, the prganization or the individual who can put the wheels of production to a more complete stop by means of strikes and bandhs is considered to have a bigger sway on the masses. Terrorism is only an accentuation of this coercive method by a section of the people to get their demands accepted by the people as a whole. The days of constructive work as a means of reaching out to the masses and influencing them by rendering actual help, empowering them to become self reliant, are over. In the same way, the bureaucrat who can put more spokes in the wheels of production is more fawned upon if not also more empowered. People who can incite violence and let loose terror, are wooed by the ruling establishment. Like the givernment, religion too has a regulatory role in a society. Religious leaders are also given too much importance as compared to their contribution to productivity. Even the media give too much coverage of non - productive activities of politics and religion. Both are luxuries which only a productive society can afford. We, Indians, tend to behave like a post - wealth generation society while still being in a pre - wealth generation phase. We forget that everything has a time and place.
In fact, in our country, rewards to persons in category 2b) are the highest, followed by persons in category 2a) and the least beneficiaries are persons in category 1). - exactly opposite to the desirable situation. It has resulted in the dignity of labour being forgotten and making blue collar infra dig. This is the main reason for our continued backwardness.
In view of the fact that a reduction in prices or at least stability in prices despite increasing demand is mainly dependent on an improvement in productivity, it is imperative that Indian society as a whole, nhould sit up and change its attitude and perspective. It is useless to expect only one section of the society viz. the regulatory personnel ( i.e. the bureaucratic and the political classes ) to do anything in this regard since any change for the better hurts their own self interests in terms of reduction of power and control not to speak of the rent collection.
A case in point is the procrastination, prevarication and finally outright rejection by these classes to concede a higher or even an equal dearness allowance to productive personnel of the public sector as compared to what is given to the government's own regulatory personnel. The government can merrily go on taking anti - productivity steps. Its personnel especially those in the lower rungs with whom the common man deals the most, are compensated fully for any consequent price rise. They care, therefore, the least for any price rise that takes place. Even its personnel in the higher rungs are compensated to the extent of 70 % of any price rise that takes place, the balance 30 % being taken care of by the power that they wield over the destiny of any productive personnel who dare to improve productivity and profitability. The regulatory personnel have thus no stake in improving productivity. The political class depends on donations and other similar sources of income which increase with price rises. The brunt of the burden of the price rises has therefore to be borne by the productive personnel while others who outnumber them in terms of numbers, income or influence can merrily take anti - productivity steps. Even the service personnel like doctors, lawyers, the trading classes can hike up their prices at their own will.
It may be argued that I have painted a picture that is gloomier than reality. However the fact remains that given the attitudes and perspective of the Indian society and our experience of the last 40 years and the results emanating therefrom, there appear to be only black clouds looming on the horizon on the productivity front.
Whenever any industry in the private sector is able to increase its profitability by an improvement in productivity, it is immediately more heavily taxed in the name of mopping up surpluses for " public good " . A case in point is the capital gains tax. Industries therefore find it easier to improve their profitability by oiling the appropriate regulatory wheels which can, by suitable variation in taxation and osuch other measures, do the trick. The world bank have also commented on these lines in a recent report published in the newspapers.
Mahatma Gandhi's idea of Swaraj was for a minimum of dependence on the government whether it was an alien one or an indigenous one. Since indepedence, we have gone in the opposite direction. We have become such slaves that perhaps very few activities such as death are not in government's control. Is it therefore any wonder that the common man expects the government - the so called Sarkar Mai-Baap to do everything for him without any contribution on his part. The addiction of the government is so strong that even while cursing it, he is unable to kick it off. In Transactional Analysis terms, the government has become the controlling parent and the common man , an adapted child. Surely not the freedom we fought for !
We can even say that we have by now imprisoned the Swaraj along with any possible improvement in productivity. The two go hand in hand. Creativity flourishes only in in an atmosphere free of throttling controls that regulate every activity. We have firmly locked up Swaraj and Creativity. Opinion leaders in all walks of lifemay like to ponder over the issues raised here and create the necessary climate for producing a "Shatalin Plan" of our own for regaining Swaraj. Or shall we wait to be fully imprisoned a la Eastern Europe or a la Pakistan before we break free ?
Improvement of productivity in all spheres of life, busting of the " Protection Racket " for our Private Sector are the crying need of the hour. the protected atmosphere in which the private sector operates has become an addiction. Unless we take all steps to improve productivity, we as a society, are heading for a runaway inflation of the type faced by the Germans in the 1930s and by the Chinese in the 1940s and what is staring the Eastern Europe at present. A change in the attitudes and perspective of the Indian elite as well as the masses is urgently called for.
FOOTNOTE:-
Within 4-5 years of writing the above article, the economic reforms came. As is normal with us Indians, they were forced on us by force of circumstances. Remember the pledging of our gold when only 15 days' worth of foreign exchange was left with us and cosequent launching of economic reforms? What are the pluses and the minuses of the economic reforms twenty years down the line ?
The pluses according to me are:-
1. Foreign exchange position is comfortable, perhaps far too comfortable. We are in fact contributing to the financial bail out of some European countries - a reversal of the situation pre reforms.
2.Our exports have increased manifold.
3. Our GDP growth rate has gone up from the " Hindu growth rate " of around 3 % to over 8 %.
4. Salaries have gone up, whether in the private or the public sector.
5.Disposable income has gone up, resulting in higher savings rate.
6. Waiting period for cars, scooters, telephones and other such largesse wheedled out of government functionaries at great cost of time, money and effort has been reduced to the time required for a telephone call. The spread of vehicles and telephones has perceptibly gone upto the lower strata of the society in this 'capitalist' era than in the earlier 'socialist' era. It is not uncmmon in cities now for a domestic servant to ring up on his mobile if he is going to be late for work as he is attending to a puncture on his moped wheel.
7. The rationing mentality caused by scarcity of goods of all descriptions has now been turned into a problem of which brand to choose due to a glut in the market. The quantity of old goods and variety of newer goods has gone up. The craze for 'phoren' goods has gone down.
The minuses according to me are :-
1.Corruption has gone up in intensity even as areas with scope for corruption have gone down judging by the scams coming out serially.
2. The salaries of regulatory personnel have gone up. Even the MPs have voted their own pay hike.
3. The expected reduction in government employees' strength has not taken place.
4.Inflation has reared its head as in the field of agriculture, no improvement has taken place.
5. The control and power mind set has not changed. This is a big hurdle in the path of eradication of corruption.
6. An attitude of service on the part of the public servants is not yet visible. They still behave as the masters of their " Ryots ".
7. The government's control on the life of the common man has not gone down. Least government is the best government. We must have more and more of self-regulation than a rigid but subject to correction by corruption governmental regulation. We must reduce the size and scope of government.
Is the Indian Society Anti - Productivity ?
Persons engaged in economic pursuits can be divided into two broad categories viz, :
1) Those engaged in production of goods and
2) Those engaged in providing services.
The second category can be further sub-divided into :
2a) Those engaged in services contributing to production and
2b) Those engaged in providing regulatory services such as i ) the government, be it in the bureaucracy or in the political wing or ii ) religious bodies which tend to regulate the social norms by which people ought to live.
We have one category in addition to the above two which is not pursuing any economic activity except for consumption. They are the aged, the children and the beggars. The aged are being compensated for their past contribution. The children's consumption is our investment in expectation of their contribution to production at a later date. The beggars, especially the able-bodied ones are socially criminals. Even among beggars, there are the honest ones and the dishonest ones who collect donations for various stated purposes but use the money for their personal use. In India this category has a larger population than in other countries.
Any society which is pro-productivity and therefore flourishing, gives far better rewards to persons engaged in category 1) as compared to to those in category 2). Even among category 2) those in category 2a) have better rewards than those in category 2b).
The Indian society has traditionally rewarded the producers badly. In the old days when agriculture was the main productive venture, rewards to the agriculturists were much lower whether in economic terms or in terms of social status than to persons of the regulatory classes such as landlords, religious priests, government servants and so on.
The copndition after independence and industrialization has not changed. We tend to give too much importance to the regulatory personnel whose contribution to productivity is at best marginal if not on the negative side. Look at our political and social set up. The party, the prganization or the individual who can put the wheels of production to a more complete stop by means of strikes and bandhs is considered to have a bigger sway on the masses. Terrorism is only an accentuation of this coercive method by a section of the people to get their demands accepted by the people as a whole. The days of constructive work as a means of reaching out to the masses and influencing them by rendering actual help, empowering them to become self reliant, are over. In the same way, the bureaucrat who can put more spokes in the wheels of production is more fawned upon if not also more empowered. People who can incite violence and let loose terror, are wooed by the ruling establishment. Like the givernment, religion too has a regulatory role in a society. Religious leaders are also given too much importance as compared to their contribution to productivity. Even the media give too much coverage of non - productive activities of politics and religion. Both are luxuries which only a productive society can afford. We, Indians, tend to behave like a post - wealth generation society while still being in a pre - wealth generation phase. We forget that everything has a time and place.
In fact, in our country, rewards to persons in category 2b) are the highest, followed by persons in category 2a) and the least beneficiaries are persons in category 1). - exactly opposite to the desirable situation. It has resulted in the dignity of labour being forgotten and making blue collar infra dig. This is the main reason for our continued backwardness.
In view of the fact that a reduction in prices or at least stability in prices despite increasing demand is mainly dependent on an improvement in productivity, it is imperative that Indian society as a whole, nhould sit up and change its attitude and perspective. It is useless to expect only one section of the society viz. the regulatory personnel ( i.e. the bureaucratic and the political classes ) to do anything in this regard since any change for the better hurts their own self interests in terms of reduction of power and control not to speak of the rent collection.
A case in point is the procrastination, prevarication and finally outright rejection by these classes to concede a higher or even an equal dearness allowance to productive personnel of the public sector as compared to what is given to the government's own regulatory personnel. The government can merrily go on taking anti - productivity steps. Its personnel especially those in the lower rungs with whom the common man deals the most, are compensated fully for any consequent price rise. They care, therefore, the least for any price rise that takes place. Even its personnel in the higher rungs are compensated to the extent of 70 % of any price rise that takes place, the balance 30 % being taken care of by the power that they wield over the destiny of any productive personnel who dare to improve productivity and profitability. The regulatory personnel have thus no stake in improving productivity. The political class depends on donations and other similar sources of income which increase with price rises. The brunt of the burden of the price rises has therefore to be borne by the productive personnel while others who outnumber them in terms of numbers, income or influence can merrily take anti - productivity steps. Even the service personnel like doctors, lawyers, the trading classes can hike up their prices at their own will.
It may be argued that I have painted a picture that is gloomier than reality. However the fact remains that given the attitudes and perspective of the Indian society and our experience of the last 40 years and the results emanating therefrom, there appear to be only black clouds looming on the horizon on the productivity front.
Whenever any industry in the private sector is able to increase its profitability by an improvement in productivity, it is immediately more heavily taxed in the name of mopping up surpluses for " public good " . A case in point is the capital gains tax. Industries therefore find it easier to improve their profitability by oiling the appropriate regulatory wheels which can, by suitable variation in taxation and osuch other measures, do the trick. The world bank have also commented on these lines in a recent report published in the newspapers.
Mahatma Gandhi's idea of Swaraj was for a minimum of dependence on the government whether it was an alien one or an indigenous one. Since indepedence, we have gone in the opposite direction. We have become such slaves that perhaps very few activities such as death are not in government's control. Is it therefore any wonder that the common man expects the government - the so called Sarkar Mai-Baap to do everything for him without any contribution on his part. The addiction of the government is so strong that even while cursing it, he is unable to kick it off. In Transactional Analysis terms, the government has become the controlling parent and the common man , an adapted child. Surely not the freedom we fought for !
We can even say that we have by now imprisoned the Swaraj along with any possible improvement in productivity. The two go hand in hand. Creativity flourishes only in in an atmosphere free of throttling controls that regulate every activity. We have firmly locked up Swaraj and Creativity. Opinion leaders in all walks of lifemay like to ponder over the issues raised here and create the necessary climate for producing a "Shatalin Plan" of our own for regaining Swaraj. Or shall we wait to be fully imprisoned a la Eastern Europe or a la Pakistan before we break free ?
Improvement of productivity in all spheres of life, busting of the " Protection Racket " for our Private Sector are the crying need of the hour. the protected atmosphere in which the private sector operates has become an addiction. Unless we take all steps to improve productivity, we as a society, are heading for a runaway inflation of the type faced by the Germans in the 1930s and by the Chinese in the 1940s and what is staring the Eastern Europe at present. A change in the attitudes and perspective of the Indian elite as well as the masses is urgently called for.
FOOTNOTE:-
Within 4-5 years of writing the above article, the economic reforms came. As is normal with us Indians, they were forced on us by force of circumstances. Remember the pledging of our gold when only 15 days' worth of foreign exchange was left with us and cosequent launching of economic reforms? What are the pluses and the minuses of the economic reforms twenty years down the line ?
The pluses according to me are:-
1. Foreign exchange position is comfortable, perhaps far too comfortable. We are in fact contributing to the financial bail out of some European countries - a reversal of the situation pre reforms.
2.Our exports have increased manifold.
3. Our GDP growth rate has gone up from the " Hindu growth rate " of around 3 % to over 8 %.
4. Salaries have gone up, whether in the private or the public sector.
5.Disposable income has gone up, resulting in higher savings rate.
6. Waiting period for cars, scooters, telephones and other such largesse wheedled out of government functionaries at great cost of time, money and effort has been reduced to the time required for a telephone call. The spread of vehicles and telephones has perceptibly gone upto the lower strata of the society in this 'capitalist' era than in the earlier 'socialist' era. It is not uncmmon in cities now for a domestic servant to ring up on his mobile if he is going to be late for work as he is attending to a puncture on his moped wheel.
7. The rationing mentality caused by scarcity of goods of all descriptions has now been turned into a problem of which brand to choose due to a glut in the market. The quantity of old goods and variety of newer goods has gone up. The craze for 'phoren' goods has gone down.
The minuses according to me are :-
1.Corruption has gone up in intensity even as areas with scope for corruption have gone down judging by the scams coming out serially.
2. The salaries of regulatory personnel have gone up. Even the MPs have voted their own pay hike.
3. The expected reduction in government employees' strength has not taken place.
4.Inflation has reared its head as in the field of agriculture, no improvement has taken place.
5. The control and power mind set has not changed. This is a big hurdle in the path of eradication of corruption.
6. An attitude of service on the part of the public servants is not yet visible. They still behave as the masters of their " Ryots ".
7. The government's control on the life of the common man has not gone down. Least government is the best government. We must have more and more of self-regulation than a rigid but subject to correction by corruption governmental regulation. We must reduce the size and scope of government.
Thursday, July 14, 2011
DADDY GOES TO OFFICE
BEDROOM AND BEYOND
Time 7-00 A.M. Everybody in the house alert except for Daddy who is asleep. Daddy has to leave for office at 7-30 A.M.So everybody else has to be alert and ready to do the jobs allotted to each member of the family. Daddy, of course does not like to be awakened abruptly ( Says it is bad for his nerves ). Daddy is an Efficiency Engineer, having specialized in Time & Motion Study. Everything connected with him has therefore to be done in the shortest possible time and in the most efficient manner.
Guddi, our four year old, is stationed at the bedroom door by 6-55 A.M. to report on Daddy's movements or the lack thereof. I am, in the meanwhile, squeezing the toothpaste on Daddy's toothbrush, laying out his shaving kit, laying out the morning newspaper by the side of the commode, taking out water ( warm in winter ) for his bath, laying out his clothes ... etc. Our eight year old son is busy polishing Daddy's shoes. Our twelve year old daughter stars making breakfast and our fourteen year old Prince Of Wales gets busy preparing Daddy's briefcase, changing the refill of his dotpen ( if needed )...etc. There is no servant, of course not because Daddy is a socialist but because no servants are needed in a well-ordered household of Daddy's conception.
INTHE BATHROOM
By about 7- 10 A.M. Daddy wakes up as is evident by the intelligence report conveyed by Guddi. Daddy rushes to the bathroom and gets busy with his morning duties. I station myself at the bathroom door. Daddy shouts across the bathroom door instructions about the letters he wants me to write to relatives, friends, the bank, the insurance company and so on. I shout back to him my instructions to him regarding the things i would like him to buy on his way back from the city. Daddy has perfected a technique for shaving with one hand while the other hand is brushing his teeth. He says his prayers while bathing and reads the newspaper while ........... . By about 7-22 A.M. he is out of the bathroom and into the dressing room; while I go into the bathroom to pick up the newspaper, fold it and shove it into his briefcase for him to finish reading it on his way to the office.
THE KISS IS IMPORTANT
The twelve year old is in the meantime bringing breakfast things on to the table. Daddy dressed, rushes to the dining table by which time, I am supposed to join him ( " BHOJYESHU MATA " ! ) While eating, he keeps a steady commentary on the day's news and current topics. I am, by then, far too weary to respond to his comments and merely nod to his views on the latest scam, the latest anti-productivity steps taken by the government, the inflation, the movements of the crony parasitic NGOs, licences secured by the crony capitalists, the latest anti-education agitation by student leaders and so on...... . Breakfast over, I pick up the briefcase to hand it to him while he sweeps me into his arms, briefcase and all, for a good bye kiss. Since the last morsel is still in the process of being chewed, the kiss tastes Omletty, Cheesy or Dosai or DESAI depending on the menu of the breakfast or whether the process of chewing has been completed by then. I expect the kiss to mean something else but being a traditional Hindu wife, I take the kiss philosophically. I even rationalize that a Hindu wife is supposed to feed herself on the leftovers of her husband's meals. Many a time have I pleaded with him to save a few seconds by omitting the kiss but then he would grow sentimental and lament at length on the lack of romance in our day-to-day life. " What use is all this hustle - bustle of a chap's life, if he can't even kiss his wife while parting for the day's work ? ", he would exclaim. After his missing the bus on such occasions and the consequent berating till a taxi was brought to our door, I now accept the kiss and the accompanying crumbs without any dissent.
Having turned himself in the direction of the door during the kiss, he deftly takes over the briefcase, depositing me on the floor at the same time. Now starts the dash to the bus terminus which is just across the park. It is a false start however. Little Guddi with clenched fists and dogged determination, pursues his steps, muttering threats to the ungrateful Daddy who always kisses mummy but never remembers Guddy. Daddy runs back, picks up Guddy in a sweeping turn, kisses her twice to make up for the lapse all the while running and depositing Guddy on the way.
C I D REPORTS
Our eight year old, stationed at the centre of the park, has all this time been passing the intelligence reports about the bus's arrival, the driver's getting back into his seat, the starting of the engine.....etc. through Guddi who, till she started pursuing Daddy was stationed at our gate. Our fourteen year old has been at the bus stand, pleading with the driver to delay the starting by a minute more. Time 7-30 A.M..... The driver, used to this daily drama, runs the bus a few feet to make Daddy run still faster. With the children urging him on, Daddy catches the doorpost of the running bus with one hand while waving triumphantly to anxious me with the briefcase brandishing other hand.
BUCK UP DADDY
The other regular passengers of the bus are also participants in the drama, being divided into "Encouragers " and " Discouragers ". Ever since his Daddy took our fourteen year old to the races ( to improve the latter's mind ), he has been accepting bets from Daddy's co-passengers on whether Daddy would make it. Earlier I was vehemently opposing this gambling bit but now I have learnt to accept it. It compensates for the occasional taxi fare when Daddy misses the bus !
THE AFTERMATH .................................
The bus out of sight, I struggle with myself for the last few steps to my bed and collapse. My last thought before falling into exhausted sleep is " Why in goodness can't Daddy wake up earlier. Eet eese baad for his nerves. His, of course. As for me, i am already a n..e..r..v..o..u..s w..r..e..c..k...........Grrr.........Grrrr.............
Time 7-00 A.M. Everybody in the house alert except for Daddy who is asleep. Daddy has to leave for office at 7-30 A.M.So everybody else has to be alert and ready to do the jobs allotted to each member of the family. Daddy, of course does not like to be awakened abruptly ( Says it is bad for his nerves ). Daddy is an Efficiency Engineer, having specialized in Time & Motion Study. Everything connected with him has therefore to be done in the shortest possible time and in the most efficient manner.
Guddi, our four year old, is stationed at the bedroom door by 6-55 A.M. to report on Daddy's movements or the lack thereof. I am, in the meanwhile, squeezing the toothpaste on Daddy's toothbrush, laying out his shaving kit, laying out the morning newspaper by the side of the commode, taking out water ( warm in winter ) for his bath, laying out his clothes ... etc. Our eight year old son is busy polishing Daddy's shoes. Our twelve year old daughter stars making breakfast and our fourteen year old Prince Of Wales gets busy preparing Daddy's briefcase, changing the refill of his dotpen ( if needed )...etc. There is no servant, of course not because Daddy is a socialist but because no servants are needed in a well-ordered household of Daddy's conception.
INTHE BATHROOM
By about 7- 10 A.M. Daddy wakes up as is evident by the intelligence report conveyed by Guddi. Daddy rushes to the bathroom and gets busy with his morning duties. I station myself at the bathroom door. Daddy shouts across the bathroom door instructions about the letters he wants me to write to relatives, friends, the bank, the insurance company and so on. I shout back to him my instructions to him regarding the things i would like him to buy on his way back from the city. Daddy has perfected a technique for shaving with one hand while the other hand is brushing his teeth. He says his prayers while bathing and reads the newspaper while ........... . By about 7-22 A.M. he is out of the bathroom and into the dressing room; while I go into the bathroom to pick up the newspaper, fold it and shove it into his briefcase for him to finish reading it on his way to the office.
THE KISS IS IMPORTANT
The twelve year old is in the meantime bringing breakfast things on to the table. Daddy dressed, rushes to the dining table by which time, I am supposed to join him ( " BHOJYESHU MATA " ! ) While eating, he keeps a steady commentary on the day's news and current topics. I am, by then, far too weary to respond to his comments and merely nod to his views on the latest scam, the latest anti-productivity steps taken by the government, the inflation, the movements of the crony parasitic NGOs, licences secured by the crony capitalists, the latest anti-education agitation by student leaders and so on...... . Breakfast over, I pick up the briefcase to hand it to him while he sweeps me into his arms, briefcase and all, for a good bye kiss. Since the last morsel is still in the process of being chewed, the kiss tastes Omletty, Cheesy or Dosai or DESAI depending on the menu of the breakfast or whether the process of chewing has been completed by then. I expect the kiss to mean something else but being a traditional Hindu wife, I take the kiss philosophically. I even rationalize that a Hindu wife is supposed to feed herself on the leftovers of her husband's meals. Many a time have I pleaded with him to save a few seconds by omitting the kiss but then he would grow sentimental and lament at length on the lack of romance in our day-to-day life. " What use is all this hustle - bustle of a chap's life, if he can't even kiss his wife while parting for the day's work ? ", he would exclaim. After his missing the bus on such occasions and the consequent berating till a taxi was brought to our door, I now accept the kiss and the accompanying crumbs without any dissent.
Having turned himself in the direction of the door during the kiss, he deftly takes over the briefcase, depositing me on the floor at the same time. Now starts the dash to the bus terminus which is just across the park. It is a false start however. Little Guddi with clenched fists and dogged determination, pursues his steps, muttering threats to the ungrateful Daddy who always kisses mummy but never remembers Guddy. Daddy runs back, picks up Guddy in a sweeping turn, kisses her twice to make up for the lapse all the while running and depositing Guddy on the way.
C I D REPORTS
Our eight year old, stationed at the centre of the park, has all this time been passing the intelligence reports about the bus's arrival, the driver's getting back into his seat, the starting of the engine.....etc. through Guddi who, till she started pursuing Daddy was stationed at our gate. Our fourteen year old has been at the bus stand, pleading with the driver to delay the starting by a minute more. Time 7-30 A.M..... The driver, used to this daily drama, runs the bus a few feet to make Daddy run still faster. With the children urging him on, Daddy catches the doorpost of the running bus with one hand while waving triumphantly to anxious me with the briefcase brandishing other hand.
BUCK UP DADDY
The other regular passengers of the bus are also participants in the drama, being divided into "Encouragers " and " Discouragers ". Ever since his Daddy took our fourteen year old to the races ( to improve the latter's mind ), he has been accepting bets from Daddy's co-passengers on whether Daddy would make it. Earlier I was vehemently opposing this gambling bit but now I have learnt to accept it. It compensates for the occasional taxi fare when Daddy misses the bus !
THE AFTERMATH .................................
The bus out of sight, I struggle with myself for the last few steps to my bed and collapse. My last thought before falling into exhausted sleep is " Why in goodness can't Daddy wake up earlier. Eet eese baad for his nerves. His, of course. As for me, i am already a n..e..r..v..o..u..s w..r..e..c..k...........Grrr.........Grrrr.............
Thursday, July 22, 2010
THE LAW OF PRICE RISE
There are many factors that cause prices to rise. Apart from the known factors such as greed on the part of manufacturers, middle men, retailers, labourers (both industrial and agricultural) scarcity of goods or the components go into them and so on,there is one important factor that does not seem to have received adequate publicity. This is the factor of resistance to increase in prices.
Now, let us see what happens when prices increase. There is naturally a clamour against it. Nobody likes to pay more for the same quantity and quality of goods or to get lesser quantity and/or inferior quality of goods for the same amount as paid hitherto. Everyone feels that something should be done about it.
This "something" can take two alternative or simulltaneous routes. One is to make the government to control prices by legislation and implementation thereof. The other is the root of consumer resistance.
In the first case the legislature which consists of elected representatives who are supposed to voice the feelings of their electorates, passes certain legislations. This process costs some money, not much though. Then comes the implemention. The government has necessarily to recruit certain number of people and setup and maintain a price control administration right down to the level of a municipal war or to the level of a village. This costs money.
The traders have to keep their books in a certain way. This costs money. The comman man has to have ration cards or permits. Getting this and maintaining them also costs money. All this expenditure has to be born directly or indirectly by the consumer.
Long after the original reason for the price increase has disappeared, the price control administration continues to rule the roost. A number of vested intersts that have sprung up and the fears of the public see to it. I am ignoring the cost of corruption that would not have existed in the absence of controls but as a factor in perpetuating controls, it cannot be ignored.
The opposition parties mount a protest by way of rallies, strikes and bandhs. This results in loss of production, reduction in GDP and further increase in prices.
Thus, we see that people keep on paying more in a controlled and labourious way for their uncontrol fears or lack of understanding of the real causes of increase in prices.
In the next alternative, the one of consumer resistance , firstly it peters out after a time as no sustained effort is possible. Apaart from this, if people resist a price increase, tha additional cost to the trader on account of countering this resistane makes him either to take to some other trade or further jack up the prices at the first available opportunity. The trader too has his own fears! Even organising a consumer resistance movement and sustaining it, costs money.
We have thus seen any resistance to increase in prices only tends to further increase in prices. We have been resisting price increase ever since the second world war and look at the situation that it has led us to.
The law of price rise can, therefore, be stated as follows:
Price increases are directly propoortional to the amount of resistance offered to them and perpetuate long after the original real cost that led to them has disappeared.
What is then the remedy?
The remedy is very simple and apparently satirical, though realistic. It is this:
A. When a price increasse takes place, grumble (if you must) but do nothing, absolutely nothing about it.
B. If possible, prevent others from doing anything about it.
C. On no account allow those in authority i.e. the political class consisting of the ruling and the opposition parties and the bureaucratic class to know of the increse in prices. They have, you see, a notable weakness of doing "something" about it. The kind that "Denis the menace" does to "help" his mother. We all adore people in authority just as we adore Denis but that does not make Denis's help any more acceptable to his mother except as a means of occasionally relieving boredom.
D. One more thing. Kindly forget that you read this. As it is, T have already pushed up prices by the cost incurred in writing about them!
E. Believe the economists. Work harder, produce more (except babies), consume less, improve productivity and all that rot that we do not like to do.
If the above remedy is not acceptable and you would insted like to have a big holiday, then go on having a series of bandhs, bring about a collapse of the economy, allow coming up of an authoritarian or a fundamentalist Marxist government that forcibly makes you follow the E. part of the above remedy in a violent way. Follow the E. part voluntarily or compulsorily. The choice is yours!
Now, let us see what happens when prices increase. There is naturally a clamour against it. Nobody likes to pay more for the same quantity and quality of goods or to get lesser quantity and/or inferior quality of goods for the same amount as paid hitherto. Everyone feels that something should be done about it.
This "something" can take two alternative or simulltaneous routes. One is to make the government to control prices by legislation and implementation thereof. The other is the root of consumer resistance.
In the first case the legislature which consists of elected representatives who are supposed to voice the feelings of their electorates, passes certain legislations. This process costs some money, not much though. Then comes the implemention. The government has necessarily to recruit certain number of people and setup and maintain a price control administration right down to the level of a municipal war or to the level of a village. This costs money.
The traders have to keep their books in a certain way. This costs money. The comman man has to have ration cards or permits. Getting this and maintaining them also costs money. All this expenditure has to be born directly or indirectly by the consumer.
Long after the original reason for the price increase has disappeared, the price control administration continues to rule the roost. A number of vested intersts that have sprung up and the fears of the public see to it. I am ignoring the cost of corruption that would not have existed in the absence of controls but as a factor in perpetuating controls, it cannot be ignored.
The opposition parties mount a protest by way of rallies, strikes and bandhs. This results in loss of production, reduction in GDP and further increase in prices.
Thus, we see that people keep on paying more in a controlled and labourious way for their uncontrol fears or lack of understanding of the real causes of increase in prices.
In the next alternative, the one of consumer resistance , firstly it peters out after a time as no sustained effort is possible. Apaart from this, if people resist a price increase, tha additional cost to the trader on account of countering this resistane makes him either to take to some other trade or further jack up the prices at the first available opportunity. The trader too has his own fears! Even organising a consumer resistance movement and sustaining it, costs money.
We have thus seen any resistance to increase in prices only tends to further increase in prices. We have been resisting price increase ever since the second world war and look at the situation that it has led us to.
The law of price rise can, therefore, be stated as follows:
Price increases are directly propoortional to the amount of resistance offered to them and perpetuate long after the original real cost that led to them has disappeared.
What is then the remedy?
The remedy is very simple and apparently satirical, though realistic. It is this:
A. When a price increasse takes place, grumble (if you must) but do nothing, absolutely nothing about it.
B. If possible, prevent others from doing anything about it.
C. On no account allow those in authority i.e. the political class consisting of the ruling and the opposition parties and the bureaucratic class to know of the increse in prices. They have, you see, a notable weakness of doing "something" about it. The kind that "Denis the menace" does to "help" his mother. We all adore people in authority just as we adore Denis but that does not make Denis's help any more acceptable to his mother except as a means of occasionally relieving boredom.
D. One more thing. Kindly forget that you read this. As it is, T have already pushed up prices by the cost incurred in writing about them!
E. Believe the economists. Work harder, produce more (except babies), consume less, improve productivity and all that rot that we do not like to do.
If the above remedy is not acceptable and you would insted like to have a big holiday, then go on having a series of bandhs, bring about a collapse of the economy, allow coming up of an authoritarian or a fundamentalist Marxist government that forcibly makes you follow the E. part of the above remedy in a violent way. Follow the E. part voluntarily or compulsorily. The choice is yours!
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