FE@CAMPUS MASTERMIND: Response by Harish Kumar to question for Jan 21-27
If you can't convince them, Confuse them , and that's what government is doing for economic revival of the country's beleaguered deficit position.
Even suppose austerity measures is an optimistic step then why Europe is still struggling with their negative growth figures and in Indian economy we can see that if these scams ( CWG , Stamp Duty scam , Adarsh scam, 2G Scam ,the list is on & on ) had been controlled , if the Black money accessed from the Swiss banks A/c , infrastructure to restrict misuse of Electricity and of course heavy investment of public money in political functions and If money from this source had been invested for the well being of the people then there is no need of taking austerity measures which compromise with the quality of life and living standard of people.
At the micro level if we see companies like HUL & DABUR who had recently stepped to support not only their firms need of resources but also claim to increase their shrinking margin through recycling the 12k tonne/day plastic junk wastage in India , their by contributing to the upliftment of the rag pickers.
As these companies have not focussed on salary cut in order to increase their profit margin but the reverse is the perfect analogy the way austerity had been viewed by the government.
So austerity measures are not the only way out for economic recovery it is just an option for the last resort.
Balaji Institute of Modern Management (BIMM) , PUNE
(This entry is part of our FE MASTERMIND contest. The views expressed in this article are personal and not that of the newspaper.)