Government-spending on infrastructure is concerned
because without transport, roads and railways, producers will find it difficult
to create demand for their products, they cannot reach each other....” if they
are unable to supply, they would be unable to create demand.... Moreover
another factor which creates demand is wages/income, beside supply... But, both
culminate in higher growth-rate... education and skills, intangible
infrastructure, are also a sine-quo-non for a sound industry and a sound life...
The more educated and skilled you are, the more the ways you can make your life
good with others equally productive which is measured in numbers, the number of
zeros in your pay-check... The more you earn the more you pay taxes... And this
is the raar between capitalists and the government that if they pay higher
taxes they should be given priority in benefits.... the government should
favour rich... a long-time battle... They have a indirect control over the
monetary and fiscal-policies... But, the capitalists in INDIA are unaware of
the real gains, real-interest-rate in this scenario... They are even lower in
case in savings... Inflation has kept the value of debt low in real terms and
if the industry increases its expenditure, now, it will stoke more inflation;
means lower value of debt... Industry has the (this) power... The industry can always offset the effect of
higher interest-rate by investing more and generating more inflation... We must
try...
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