"the tax-GDP ratio is 50 and 49 per cent in Sweden and Denmark, and 45 per cent in France. (These figures used to be much higher before the advent of neoliberal policies two decades ago.)" And why did these enlightened souls move to neoliberal policies? Because they realized that socialist crap had brought down their GDP growth to pathetic levels. Just because they had a high per capita GDP to begin with they were able to live with low growth rates but when the recession pinch was felt they realised there is no alternative to GDP growth for development. Much as Mr Prful Bidwai would hate it, wealth with upper middle class has a much better rate of utilization/distribution to poor than the wealth that is taxed by the govt. Unlike 10ps of govt money spent on populist socialism(that reaches the needy). Most of the money spent by upper middle class on so called luxury like car driver, house maid etc reaches the deserving needy(not the ones who want food/house guarantee without work) much more efficiently(no politicians/bureaucrats to skim the grant). Most of the (white)wealth owned by Industrialists is invested back into the economy like setting up factories that provide employment to poor as well as help GDP growth. The only problem is the black money owned by Politicians, bureaucrats and crony capitalists. Since it is black they cant invest it in economy for growth. Unaccountable socialist schemes of govt spending are going to increase this black money.
Re: Our plumeted GDP growth rate has not yet satisfied communists
by American Indian on Mar 23, 2013 05:43 AM
PS: "10ps of govt money" refers to Rajiv gandhi quote that 10ps of evry 1Rs spent by govt reaches targeted needy. Wealth of rich can be broken into two parts: a) legaly earned white money that can be invested in economy to generate more wealth for owner(or atleast parked in Indian bank/share market for interest) b) Illegaly generated black money for which owners are willing to pay more money to swiss banks to keep it hidden. 90ps of the 1Rs spent by govt(that did not reach the targeted needy) is what has been skimmed by politians, bureaucrats, crony capitalists(like mr Vadra who makes 300crores out of 50 lakhs in a short time). This is black money that is lost out of the growth engine for ever. Hope the aam admi party or BJP is able to bring back all this money from swiss banks.
Majority of Indians are poor as clearly they are not smart and are being taken to cleaners.
One sees that in the UP woman living in a shack without electricity, water supply and kids running without shoes crying as Rahul did not win UP!!!
No wonder Congress is happy to keep these people begger and treat Indians with deserved disdain.
They know dull masses will vote them in for a few ruppes given as gifts.
Then there is the lazy middle class who know better ,but don't vote and
the rulling class make it more difficult for middle class to vote by making the ques bigger outside polling stations and removing a number of names from the voting lists rather that making the voting lists transparent and allow online voting,
Politicians would rather that Middle class go on holiday on voting day, so that they can get the poor in truckloads to the polling stations and play thier dirty polictics
Re: There is saying .. "if you are so smart.then how come y
by vikas jindal on Mar 22, 2013 07:58 PM
There is a saying "if you are so smart.then how come your poor"
