Why socialist (Economics) professors don’t teach a simple fact about weak rupee and strong rupee?
Why Indian Commerce Minister doesn’t preach rupee appreciation?
Who will gain from rupee appreciation and who will not?
No jargon nothing. There are many way by which one can look into the simple economics of rupee appreciation and depreciation.
If the Indian rupee get stronger or otherwise appreciates against say US dollar it is good for every poor people in India, so that they get cheaper imported goods with high quality. In the case of good quality products which is not available within India is doubly welcome.
Of course the domestic industries will get affect and may lead to more employment losses. It doesn’t mean that the poor people should sacrifice their natural right to access the cheaper goods from other country.
If the rupee appreciates by which the particular industry faces greater challenges should be read for the alternative arrangement without taxing the poor people little choice.
No doubt the Government officials, ministers may wolf cry for foreign exchange reserve, this and that by lobbing. But they will never serve for poor people after they voted into power.
April 11 2008 is the day I felt amazing and more excited to purchase more stuffs usually liberal economists books but could not make use of that. That day the Indian rupee was at 39.98 for per US dollar.
The above story led me from the today’s news which I read in the Business Line “Rupee crashes by 90 paise”, in which Mr Kamal Nath, who is India’s Commerce Minister lauds stupidly “We have allowed rupee to move from 39 to 46 against the dollar. We should not calibrate. Not calibrating it shows the strength of our institutional systems and that the best practices have been adhered to in Asia”.
Is the right way to ‘strengthen our institutional system?’ or is the babus way of stealing poor people choices?
There is strong case from my side. For instance, the persons like me could not buy the book which has been published way back several decades. See the below list:
The millions of poor people and even non poor in India have hundred of things in list like mine (still goes long). Therefore there is no harm in the rupee appreciation (against US dollar) which is actually good for people. More the imports of quality goods attribute to more the rich people and innovate domestically more than they import further.
In other words Mr Kamal Nath is indeed producing more poverty or depraving poor people’s choice which is not permitted in the constitution. “No person shall not be deprived any of his or her basic choices which are essential for the life and that never be a sufficient condition.
There is other interesting post on this issue by Indian liberal economist Sauvik Chakraverti
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