Wednesday, May 18, 2011

Subsidy Cut: Brave or Grave decisions?

While certain quarters have been claiming that subsidy cuts are neccessary and the move have been hailed as a brave decision and the way forward, others are quite sceptical.....I would call the first group 'apple polishers' whilst the sceptics are just being realist.Sugar subsidy cut,,,petrol subsidy cut..diesel subsidy cut...all these have huge impact on the man on the street. Why dont we hear the subsidy cut for IPP? In contrary with the unpopular believe that this is a brave decision, I strongly believe they are making a grave mistake...( or they really don't care about the man on the street?) Yes, I  do agree to a certain extend, (afterall I have to walk the talk...I teach and preach economics...). that subsidies or any kind of market distortion is not good, and will make the market less efficient, but hey, we have to look at the bigger picture here. Or is there a masterplan..with the Central Bank recently increasing the interest rate, increasing the statutory requirement...ah ha...now it is making sense...Bank Negara Malaysia is preparing for the inflation..they are indeed working hand in in glove..with the Government...the subsidy cuts are inevitable...The United States of America...the so called developed state itself is heavily subsidising its agriculture and textile industry, why can,t we keep the subsidies.... And another thing that really disturbs me is when they keep on harping that the Barisan Nasional is subsidizing the rakyat...hellooooo....it is not coming from their party coffers..it is the rakyat's...stop making ridiculuous and evil statements...what is the point of us moving towards a high income country when the wealth is shared among a few percent of elites a.k.a politicians and the majority of the rakyat suffers...the income inequality gap would become wider.......?...... GOD help us...signing off for now...adios..a.h.baharom

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