The rollback of freebies by Himachal Pradesh government in the wake of severe financial crisis should become a case study of the possible hazards of politically motivated public welfare policies without any financial forecasting. If one remembers, Himachal Pradesh was one of the first states to go back to the Old Pension Scheme as well in spite of repeated flags raised by no less than the RBI governer himself, among others. Piling on the debt burden of a state to offer unsustainable welfare should be discouraged at the highest level especially when we as a nation are trying to reduce the fiscal deficit and becoming more self reliant. The public coffers don’t just fill by themselves and a lot of aspiring political leaders fail to understand this. Governance should be as much about generation of revenues as it is about equitable distribution of resources.
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Jerusalem College of Technology (Lev Academic Center) research fellow. Shomron Center for Economic Policy Research leading research fellow
This beautiful picture and verses should be included in every introductory course on economics, not to mention textbooks on economic history. Prices in the "Ruler of Waves" and "The Workshop of the World" were stable for decades! One could even tattoo it as an ever-relevant reference. The same is more or less true for all other taxpayer democracies of the 19th century. The main reason behind this price stability was not even the gold standard, but rather the balanced government budgets that were not burdened by "generous" welfare spending (at the taxpayers' expense for bureaucrats and "tax-consumers"' benefit - see https://lnkd.in/gEBjY9R) and the massive machinery of the welfare state.
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1moSome amazing facts and perspective out there! 👏