NREGA An Inflationary Program

P

prsh25

New member
I just want to discuss whether pumping this much amount in economy coupled with increase wages of Govt employees has increased inflation what is ur take pls update...
 
yaa it seemslikea inflationary program:SugarwareZ-078::SugarwareZ-078::SugarwareZ-078::SugarwareZ-078:
 
I feel the current inflation we are facing is due to the supply side constraints and not due to demand-supply mismatch.I feel this has nothing to do with the wage increase for Govt employees.When you feel that there is a sudden rush of money into the system because of the wage increase there is also another side to the same coin.Most of the private sector employees have lost their jobs and ppl who have job also had their salary slashed,export sector was badly hit.All factors could have certainly sucked out the liquidity from the system.This could have not been balanced by the wage revision for Govt employees.

-Deepak.
 
I believe NREGA has a dual impact: apart from empowering the rural population financially it also empowers them socially by providing them opportunity to find employment. Though I doubt that the work would be able to add any skills
 
NREGA scheme has demerits like
1. The supply of labor to agricultural activities is highly reduced, thereby farmers suffer heavily by this scheme.
2. Inflation in the nation.
3. Increase in deficit for Government. etc.
 
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