1. For long, we've been doled out a host of 'subsidies' by successive governments, under the pretext of helping the 'aam aadmi'(made further popular by Vadra's famous tweet - 'mango people') in our efforts at socialism. The flip side was to tax the rich - which was too lopsided - as the steps taken towards achieving it, invariably, affected the middle class with the 'lower middle class' bearing the brunt.
2. To put it in perspective, let's be clear by the fact that whatever be the tax regimes, neither the rich nor the poor are really affected. Its effects are felt by the wannabe rich - the high percentage of the population that constitutes the 'middle class'. To illustrate it let me take you through some of the ridiculous myths that we've been fed over the years:-
(a) Anyone who 'owns' a car is classified as being rich. And almost all the cars, until recently, were petrol
driven. Hence, because tax deductions had to be made to fill the government's coffers, the price of
petrol was continuously hiked, over the past, that Indian petrol is the dearest in the world.
(b) Farmers on agricultural activity used generators, irrigation pumps and tractors that guzzled diesel. But
they'd to be given subsidised diesel, not necessarily as a welfare measure, but for other reasons which
are highlighted by the following:-
(i) All farming activity, in the country, is restricted to rural areas only.
(ii) Only the wealthy farmers - with huge land holdings - can afford and therefore, own farming
implements like tractors, pumps and generators(When former PM, Deve Gowda, called
himself 'a humble farmer' one could only laugh cynically as he and his family possess vast
land holdings).
(iii) They also had a large part of the rural folk, whose daily earnings were from the work done on
their agricultural tract, under their strict control. And whose remuneration was a pittance!
Moreover, their thought processes were shaped by their masters - an incredible and
pliant votebank!
(iv) It can thus be seen that the subsidised diesel was actually to pander to the whims and fancies
of those few rich farmers.
(c) With improved education and the continuous feed of information, drastic changes are coming around
in the rural landscape. The educated aspires for better jobs, better remuneration and a life better
than what their parents and elders had lived thus far.
(d) The case of subsidy in cooking gas doesn't have to be amplified because, it too, follows a similar
pattern.
3. This situation could not have gone any further without the total collapse of the country's economics with the rich growing richer and the poor getting poorer. The new thrust is fine, though it's gonna pinch us and soon find us gasping for the next 'pay commission'!
Tailpiece.
(a) My Chevy is diesel driven and the economics derived over a petrol driven one is gonna dwindle in the not too distant future.
(b) Only hope that sloth and unproductive governmental expenditure are also removed in right earnest.
PS.
The freight, both by rail and by road, entails diesel guzzling traction. The cascading effect of increased price of diesel is the price rise off all commodities. A never ending circle!
2. To put it in perspective, let's be clear by the fact that whatever be the tax regimes, neither the rich nor the poor are really affected. Its effects are felt by the wannabe rich - the high percentage of the population that constitutes the 'middle class'. To illustrate it let me take you through some of the ridiculous myths that we've been fed over the years:-
(a) Anyone who 'owns' a car is classified as being rich. And almost all the cars, until recently, were petrol
driven. Hence, because tax deductions had to be made to fill the government's coffers, the price of
petrol was continuously hiked, over the past, that Indian petrol is the dearest in the world.
(b) Farmers on agricultural activity used generators, irrigation pumps and tractors that guzzled diesel. But
they'd to be given subsidised diesel, not necessarily as a welfare measure, but for other reasons which
are highlighted by the following:-
(i) All farming activity, in the country, is restricted to rural areas only.
(ii) Only the wealthy farmers - with huge land holdings - can afford and therefore, own farming
implements like tractors, pumps and generators(When former PM, Deve Gowda, called
himself 'a humble farmer' one could only laugh cynically as he and his family possess vast
land holdings).
(iii) They also had a large part of the rural folk, whose daily earnings were from the work done on
their agricultural tract, under their strict control. And whose remuneration was a pittance!
Moreover, their thought processes were shaped by their masters - an incredible and
pliant votebank!
(iv) It can thus be seen that the subsidised diesel was actually to pander to the whims and fancies
of those few rich farmers.
(c) With improved education and the continuous feed of information, drastic changes are coming around
in the rural landscape. The educated aspires for better jobs, better remuneration and a life better
than what their parents and elders had lived thus far.
(d) The case of subsidy in cooking gas doesn't have to be amplified because, it too, follows a similar
pattern.
3. This situation could not have gone any further without the total collapse of the country's economics with the rich growing richer and the poor getting poorer. The new thrust is fine, though it's gonna pinch us and soon find us gasping for the next 'pay commission'!
Tailpiece.
(a) My Chevy is diesel driven and the economics derived over a petrol driven one is gonna dwindle in the not too distant future.
(b) Only hope that sloth and unproductive governmental expenditure are also removed in right earnest.
PS.
The freight, both by rail and by road, entails diesel guzzling traction. The cascading effect of increased price of diesel is the price rise off all commodities. A never ending circle!
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