When India and US are trying to put the ball in each other's court for the current global crisis of high food prices and oil pices , surprisingly me ,an Indian thinks that India is responsible ... but not as US shows us .. in a different perspective ..
The simple law of economics says as demand increases supply should increase and if supply wouldn't increase then demand has to go down .. Now as the crude oil price goes on increasing , our government is tryin to shield us from the high price by providing us subsidy .. this subsidy is allowing to keep the demand high and as the supply is not increasing the price is rising .. due to ths subsidy RBI is trying to compensate this by priniting more paper money and hence too much money runnning for not so high products . putting the infaltion bug-bear in full throttle ...
US says India and China are responsible for food price increase as they are consuming much more because of their growth .. i am unable to find any base on this argumnet .. but I would say as India is playing its part in global price increase through hoading .. in order to curb inflation government has banned the export of food grain and thus the artificial hoarding is making the global food price high ...
think about this as the oil price is high the OPEC and oil rich countries are not willing to drill more oil and are also doing the same thing what India is doing for food ..
Hence for the "invsible hand" of economics to come true and make everything as usual we should make our market complete free .. a "laissez-faire " approach .. which will make all of us to become more responsible for what we are spending ..and doing .. and not make responsible government for everything .. austerity hence is the call ....
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