Articles

Subsidy is the Business model ?!

Date: 14th Aug 2018

Based on RTI response we received, Telangana can barely cover it’s operational expenses from it’s revenues. Subsidy is quickly becoming the only business model. Get something for free and then sell it for profit. Money distribution is the entire political strategy. For example: State buys rice for more than 30 rupees per kilo and gives it to the poor at 1 rupee per kilo. In times when a private business can’t produce anything for 1 rupee yet the government gives away 1 kilo of rice for 1 rupee they are destroying the incentive to work.

It’s a slippery slope. This will create more poor and result in less production of rice. Why would anyone work in the fields when they can easily get 1 kilo of rice for 1 rupee?! This very act is directly resulting in rise of daily labor wages which in turn is destroying small farming all across the country. There are so many other examples. Distribution of free sheep. Soon after that, these free sheep are sold for a profit after cutting off ears with tags. In this process, climate difference killed off a big portion of sheep brought from outside the state. Also, most of these benefits are not used for long term self sustenance but only for a quick profit.

Apart from this, the differences in benefits given to various groups also divide the people further. Most importantly, free money kills the fighting spirit, without which we’re not much. Inevitably, private businesses can’t survive and state revenues will dwindle. In continuing with the same policies of vote bank politics, we’re digging economic graves after which there will be economic chaos. Then, we can forget the rule of law and forget our democracy.

The video is added below.