Sunday, December 21, 2008
the discussion that happend in the class regarding giving more money to those who are deprived, more than what they are actually working for, i wonder how is this going to help that poor person. just in case, if all such people are similarly given extra money then ceratinly they will have more money to spend, but on the other hand wont the goods also become expensive, as more money would be available to buy the same goods. consequently, those who would have been brought to a minimum level of comfortable sustenance would again slip below it as the goods and services would also become more expensive. so isnt it a a sort of vicious circle going on. the basic question that i wonder sometimes is whether it is actually possible to remove poverty, because just because millions are poor a lot of vested interests are served. few people get to exploit those who are poor and for the rich its not possible to become rich without exploiting the poor. is it actually possible to eliminate this exploitation completely, this exploitation on which the whole structure of the society is based.
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2 comments:
Dear subhasis, i think this simple example may help us in understanding the issues raised by you. suppose you have Rs.200 and I have Rs.5. I am definitely much poorer than you. If you transfer Rs.50 to me, I am still poorer but better off and able to meet my daily needs, however toatl money in the economy remains the same.
As far as your concern of increase in prices are concerned, it wouldnot happen unless and until there is a comparative shortage of goods.In practical example, it is not a huge problem of supply. Another point is this transfer of income will definitely change the demand pattern in the economy, but most important thing to look is demand for which commodities are increasing.
Last but not the least rich and poor are comparative terms. they will always co-exist. what matters is the intensity of the gap. and please do not say that all society is based on exploitation. who gets exploited in irma as a society?
dear ravi.....
thanx for the clarification
but.....
first i would like to clarify a point that by society, i meant a capitalist system of society....which most of the countries in the world are following or are tending to follow...where profits are the main driving force.....and regarding the example u gave........what i intended to say was......if i give u Rs 50....then u too would like to buy a good/service of Rs 10....which i am buying and was out of bounds for u earlier........but since now u are buying it......wont the demand of the good increase.....and wont it lead to increse in the price of the good ( if we assume that the market forces are operating the way they should)......i would be very grateful if you could further clarify my doubt
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