Rather than suffering from Hunger, Poor people would like to better receive money directly from Govt either its NREGA or some other krap. Its a vote bank tactic. NREGA created shortage of labour in urban and rural areas. But if it Poor are able eat because of it, it does make sense.NREGA is for such people who are struggling to have 3 meals a day.
and your defending of mnreg is defendig the UPA at its worst policy. and this is not the first time you hve defended their stupid policy.
Its not entirely krap. The biggest flaw of NREGA is the projects that are being taken up. They are simply useless and don't provide any value to the society.
If projects in NREGA are able to give some economic boost then it will be great.
Let me tell you an example-
Now lets take that there are 100 citizens in the a city. It has 10 cars. Now the car is in demand among the 100 citizens and the demand sets the price at .1 Lakh. OK? Now lets suppose only 10 members of the city have that money and they will buy it. Then this stupid govt like UPA steps in to remove the disparity to make the citizens able to afford the car. Now The govt pays 1Lakh for the citizens. Now everyone will have 1 Lakh. And the no. of Cars are just 10 hence every one will afford it and hence the demand will push the car price to 2 Lakh , and once again only those ten members will be able to afford it(again). But the people will have more money but its value is useless as it is only a product of inflation and not actual growth.
So the actual way of making the people afford the car is to make 100 cars- .ie increase the production, which will bring down the price and will contribute to the actual economy.
I hope you got the message
Any who, this is what UPA is doing with its subsidies- triggering Inflation without actually increasing the production- leading to increase in the Nominal economy while no increase in real economy. Or else Simply put it is a simple hog wash.
Still any supporters for MNREG?
UPA is not providing Cars to everyone
MNERGA pays 100 to 200 per day to every individual.
if they are able to eat well, meet their basic needs, then purpose is served. there is no economic output from the activity, but that is a different matter.
Its a crime if Govt fails to provide enough food to all people in country, There is absolutely nothing wrong in Subsidizing food & basic needs. Look at the nutrition levels of poor, infant-mortality rate. Every country provides subsidies to support some weak segments of their society.
blaming this as reason to inflation is like blaming the poor for leading their lives decently, without dying of hunger.
Its utter failure on the part of market & govt if there is food inflation because of supply side constraints- you can blame Govt Public Distribution, Blame the Hoarding, Speculation.
If food prices have rised because poor are eating well then its a shame on our country.
In my entire post, i have concentrated only on food because at Rs 130 per day (minimum wage of NREGA), you can hardly provide anything more than food to a household.
policy, program itself are not that much flawed in our nation, its the implementation thats almost always flawed, the corruption etc.