Having spent hours standing in the ration line during my youth, I can certainly empathize, albeit in a very very small way, with the poor in India who are suffering due to food prices. As it is the poor (and some in the middle class) survived on "daal - roti". With daal close to Rs. 100 / kg, it is down to only roti. Are our poor on their way to achieving a parity with the poor of North Korea who sometimes have to eat grass?
I am not an economist. In fact, truth be told, I do not understand economics at all. I am told that our PM is something of an economist. But judging by the inflation and the price situation, what can we deduce about his team's ability to handle the inflation and the price rise.
The following is an article which, at least point in the right direction.
A couple of quotes from the article and the url are as follows.
Speculative hoarding causes price-rise
By Himanshu Shekhar Jha
"THE recent spurt in the prices of essential commodities which has made the life of common people in India miserable is a new phenomenon. In fact, this trend started only after the entry of the multinational companies in our country. Prior to that prices registered a hike rarely and had never been excessive as it is today. "
"In my recent visit to Deoghar, a holy place of international fame in Jharkhand, I heard a government official complaining against the UPA Government in particular Prime Minister Manmohan Singh and his Cabinet Colleagues. He wanted to bring home the truth to me that when the BJP was in Power, prices were at least stable and were not likely to wobble over at every turn of the event. He said that Prime Minister Manmohan Singh often talks about expected price-rise as a result of which hoarders swing into action immediately and pile up goods in great demand which automatically lead to inflation. "
http://www.organiser.org/dynamic/modules.php?name=Content&pa=showpage&pid=344&page=41
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