Wednesday, December 18, 2013

Are the rats deserting the Congress ship?

Have these gentlemen seen the writing on the wall that they are writing complete opposite of what they have been preaching for years. One man writes," I am delirious with joy that the tide is turning." And what is the tide whose turning has made him so delirious? It is the defeat of the Congress in elections in 4 states earlier this month despite throwing handouts on taxpayer money to bribe voters. Ashok Gehlot in Rajasthan was a ' case in point '. Why? Because he used the revenues from oil in his state for all kinds of social schemes, such as free prescription medicines, pension schemes and schemes for women. And yet  the Congress was thrashed, ending up with just 21 seats to BJP's 162. The article says that the poor feel demeaned to be given handouts such as the NREGA scheme which pays the rural poor for 100 days every year for doing no work. This, along with the Food Security Bill, was supposed to be a ' game changer ' for the Congress to win the parliament in 2014. So the conclusion in the article is that the people are sick with corruption and are refusing to be treated a beggars. The other gentleman is supposedly an economist and he writes that it will be dangerous for the Congress to resort to more social schemes to try and win elections in 2014. He says that budget figures can be fudged but will not fool economists or foreign investors. Really? He was clearly fooled because he has been writing articles, singing praises of the Congress, for years. He also mentions Ashok Gehlot of Rajasthan as an example of abject failure of bribing the voters. He says that the Food Security Bill failed because various state governments were already distributing food virtually for free. He cautions against even greater social spending, such as on free pilgrimages for people, free medicines, free energy efficient CFL bulbs or free mangalsutras for anyone getting married, because this will only add to the fiscal deficit and even if a large portion of the deficit is rolled over to next year's budget it may result in a credit downgrade to junk status. That will initiate a stampede of foreign funds because many of these funds have internal rules forbidding them from investing in countries which are not credit worthy. It is men such as these that have encouraged the Congress to bring the country close to bankruptcy. Surely they should say sorry.

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