“Iron and steel factories are shutting down all over India,”-a businessman.
What Jairam Ramesh and Sonia Gandhi’s NAC wrought:
1. They brought down the GDP growth to 3.5%. That meant people lost jobs, and new entrants did not get jobs.
2. If people do not expect to hold jobs for next twenty years, they do not buy houses.
3. If people do not buy houses, new houses do not get built.
4. If nobody is building anything new, Iron and steel, and cement factories also, do not get orders and close shop.
5. Banks get NPAs. New loans are also not taken. Their earnings nosedive.
6. Because businesses are closing down, and new are not being set up, people do not get jobs/lose jobs.
7. Because people are not getting jobs/losing jobs, they do not buy houses……..
We can go on and on……..
Thrombosis does not cause loss of blood. It just blocks it. Blood is still there. Body is still there. Just the circulation stops. First the particular part of body that is not getting blood dies, then gradually whole body collapses, because it is all interlinked.
When socialists mutilate economy, they do not immediately take away Capital, or people, or businesses. They just kill the sentiment. As the people feel that their Capital is not safe, they stop investing, and as people feel that their jobs are not safe, they stop buying. That leads to even more loss of jobs.
Economy is also like human body. Self-evolving, finely tuned machine. Not designed by anybody, and whose individual components-the individuals-do not even know why what they are doing to earn a living is helping the whole machine to run.
Of course unlike thrombosis, the socialist not only block circulation of money, they also cause its leakage through freebies. So the body-economy- dies in double quick time, and reviving it takes double the time. Those who have incurred the losses in the collapses are too scared to try again, and those who have seen the fate of the businessmen around them, also get equally scared.
Of course the economist is the guiltiest of all. He never tells this to people, so people go ahead and in desperation vote for Lalu. He at least has free chara to offer, and those peon’s jobs that now command a salary of Rs 40000/ per month, and job security for life. So what if only few thousands will get to be peons even under Lalu. At least the hope, the positive sentiment is there.