Sunday, May 1, 2011

Sudsidies...

Article;

http://economictimes.indiatimes.com/features/financial-times/will-liquidity-from-fiis-be-able-to-support-sensex-for-long/articleshow/8131388.cms

Comment;

Some countries oppose subsidies on agricultural products in the developing world. However, it is another way to sustain consumption. Since during the great re-cession, although not so great, has ended, signs are there, consumption suffered. Market is efficient when every body has an equal voice and most often government has an upper hand and it has fiscal devices to sustain the same, means it can make way for resources which markets do very aggressively and hurt consumption. Subsidies are another kind of capacity the governments generate and markets consume. They are often justified on necessary products. India needs to address the issue and subsidies are a way around.

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