Friday 10 January 2014

AAP's enlightenment schemes and Economics


AAP success on Delhi election is still a miracle sending shock waves not only to other parts of the county but to the entire world. In industry there is always a fear for the unknown that is someone from nowhere comes and disrupts the entire Market and becomes the Market leader, but now this notion is applicable for politics also with the success of AAP in Delhi. When AAP party came to power in Delhi(with support from INC) I had a good feeling for its success. I'm sure that the AAP's success will bring positive changes in all part of the country because ruling parties now knew that if they keep on giving poor governance they'll be thrown out of the political race. But AAP itself proved that I was wrong and it is also a normal political party by it's populist measure. After coming to the power AAP's reforms to curb corruption and spur growth is by giving free water supply and slashing the power tariff. Delhi AAP government created a anticorruption helpline and i agree that it is welcome move. But still providing free water supply and slashing the power tariff is not what we expect from a anti corruption reformist AAP government. But by doing so Aravind Kejriwal proved that he is just a aam aadmi and not a good leader. One question I have for the AAP government is that "Is it sustainable in longer run?". What about the money deployed for those giveaway schemes. Everyone is the state pays tax in some form either by direct or indirect by means of VAT, service tax e.t.c., it is not fair to waste all the hard earned tax money in free schemes. I agree that it is the task of government to provide water and electricity at low cost, that doesn't mean that government should provide those below the market price of the product. AAP should have done something more like improving the infrastructure of the power distribution and water supply which in turn increases the efficiency of the system which can reduce the cost of the product. The more scaring thing is the spill out effect of his measures; more state governments may end up giving more free schemes disrupting the efficiency of the system. If people can get everything for free then who'll work. I think political parties need to think twice before giving freebies. It is better if government can create more jobs and make the citizen to buy products in Market price instead of reducing the cost of the product and giving away as freebie, we expect the government not to indulge in such unviable and unproductive activities in name of reforms.

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