Tuesday, April 6, 2010

30KG of rice at very low (small) price

recently i was with my friend when i raised this topic to know his view on distributing the rice at a very small price by the govt to the poor. I felt there is a better way of doing it. However the discussion flared up and finally concluded nothing.

He is from a very poor family and had seen people very much relieved/happy by this decision of the govt. His was supporting the govt decision. Mine was the other view:

Let me start off with an example. Say u are earning 100 rs. That means the community/ society around you is earning about 200 Rs. How? See when u get ur money... u buy something out of it.. say clothes. Now the clothes guy will inturn buy rice + few more clothes. The rice guy and the clothes dealer will now make abt 10rs and 90 rs inturn. Or in other words, u earned 100 Rs but it inturn had a side affect of earning 100 more rupees to few more people. But how does this address the problem of low priced rice? My point is: instead of giving them 100 Rs (say the rice worthed it) show them an employment which can earn them 100Rs.

There are many high demand business which can only be done in villages. Like milk. ALmost ones every year the prices go up  by atleast 2Rs. Now, say the poor was given a buffallow worth 8000 rs (instead of rice the entire year...) they will earn bread (which was the whole purpose of ur rice scheme) + have cumulative effect on community/ village.

what do u say?

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