Its another election gimmick from Congress party. After being in power for over 50 years and now they have woke up to do social justice!
Giving Rs 72000 per year to 20% poor people of India, by no means will alleviate poverty.
From being in power for over 50 years, Congress did not learn a thing about poverty. Poverty is not about just lacking money, its also lack of basic amenities, lack of support from the system, lack of opportunities to participate in economic and social activity.
Only way to alleviate poverty is to make basic needs available to all the people, provide infrastructure, bring business friendly environment, cultivate a sense of nationhood so that everyone can participate in the work force. That is what Mr. Modi has done for 4 years. made electricity accessible to every house hold, build roads, support startup companies, provide interest free loans to women.
Where will you get this money from? Trump?
If you give money to 20% of poor people called A. next year another set B is formed… and this is a endless cycle. no matter how much money you give, few people will be poor compared to others if you gage them in terms of money they possess!
And where are you getting this money from? Will Trump give it? Will EU give it? You only take it from middle class who are already under burden of heavy taxes?
Vetted by Raghuram Rajan!
This scheme is purportedly vetted by former RBI Governor Mr. Raghuram Rajan.
“It has to be a way of creating a platform for them to become regular contributors of the workforce,” The New Indian Express quoted him as saying. Rajan said the scheme, which promises Rs 72,000 per annum to the poorest 20% families of the country, is doable.
I want to ask this great economist on what basis this is could pave way for contribution to workforce? Where on earth did this happen? Giving away free money makes people do no work. And seeing that more people will follow suit, destroying the whole economy.
Idle people are booze stores’ workshops. This will lead to more hardships to women.
What about Inflation?
Mr. Rajan did not mention anywhere about the effect of free money on the inflation. Extra cash leads to higher prices and thus at the end of 5 years, Rs.72000 will only be worth 7000 compared to present value.
I did not expect this from an Economist of his calibre, unless he wants to pay back to Congress for making him RBI governor or for some future favors!