Sunday, December 07, 2008
Very clever fellow wrote a story in the paper. Appears that in a town there was only one rich man who owned a large shop where everyone went to buy stuff. The shop had a huge plate glass window. One day vandals broke the window. Instantly the man had to appoint short term security. A local glass firm got the order to manufacture a similar window. Then transporters earned money to bring it over and lastly fitters were paid to fix the glass sheet in place. With so many people earning it would appear to be good for the local economy but apparently it is bad and is known as broken window economics. A large chunk of Inida's economy functions in similar fashion. Take water. In Delhi you get water for only 30 to 60 minutes a day. Everyone large plastic tanks on the ground and pumps to raise the water to the everhead tank. Some days there is not a drop of supply when tankers charge Rs. 100 to Rs. 500 for 1000 litres. Since the water is polluted everyone has UV filters costing Rs. 6000. These days people are istalling reverse osmosis machines to eliminate heavy metals costing upto Rs. 15000. Frequently taps get air block so plumbers have to be begged to unblock them. In summer Delhi reaches 45 degrees Celsius so water is life literally. When I hear of politicians boasting about growth I wonder how much is broken window.
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