Ramaswami

This Blog is about the democratic movements in India. Its only aim and objective is to fight against the anti-people policies of the ruling class.

Friday, February 7, 2020

Most people are agreed that the 2020-21 budget has done nothing to stimulate demand and hence to counter the unemployment problem which today is much worse than it has been for nearly half a century. But the need for taxing capitalists to overcome this crisis is seen by very few. Some would go so far as to concede the need for a larger fiscal deficit, but a fiscal deficit, while overcoming deficiency of demand, puts wealth gratuitously in the hands of the capitalists and the well-to-do, in the form of claims upon the government. Growing wealth inequality however fundamentally threatens democracy; government spending, financed by wealth taxation, takes away this wealth. It does not leave the capitalists and the well-to-do any poorer than they were initially, ie, before the tax-cum-spending policy was introduced; but it works towards overcoming the crisis. It would however be too much to expect the Modi government to understand this.

Budget 2020-21: Short-Term “Fixes” Endangering the Economy | Peoples Democracy




Ramaswami at 5:52 AM
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