The economics of life: Conclusion

It is quite revealing & interesting when we look at the way how everything is inter-connected & eventually tagged to "The Economics of Life". While one may argue that the economics of life is very subjective and more dependent on the individual than on the larger society, the fact of the matter is that it is subject to Government policy. While it is for the individual to make the ultimate choices, it is the Government that enables these choices thru' its various policies - be it taxes, cess, surcharge, or any other. For example, the Government plays a major role in determining price points of goods and services in most economies. Even in the so called free market economies, there is greater and increasing call for stringent regulations to rein in corporations so that profit motive (which is incidentally the goal of all commercial establishments & corporations) does not lead to any uncontrolled eventualities. The ultimate objective is to ensure that by and large, the common man is in a position to afford essential goods and services to lead his day-to-day life. What is potentially likely to happen is very easy to see by just rewinding back to the so called "worst recession since the great depression" of 2008 - 09. It is very unfortunate that despite the crash, corporates are yet to mend their ways and return to "responsible profit making". The result? We just have to look at our own backyard. Inflation remains the deadliest thorn in the flesh of the present Union Government. Despite all the assurances from the Government and the so called "best economic brains" coming together, inflation is everywhere except where most like to be: 5% - 6%. It is ironical that the who's who of economics in India are either advising the Government or busy making policies. Still, even 3 years after the incumbent Government came to power, there is no sign of inflation coming down. While the RBI has responded to rein in demand thru' its monetary policies by continually increasing the rates, the Government is still looking for the policy window which would offer it the opportunity to tame inflation & show it to the aam aadmi. The point is, inflation by itself means nothing to the aam aadmi unless it eventually results in the actual drop in prices of essential goods & commodities.

Take a look at the education sector. I recently got my little son (he's 2.5 years old) admitted to a play school. I ended up paying a whopping INR 22K for a playshool admission. It is very much possible that this amount may still be among the most competitive. The cost of education has shot up to such exhorbitant levels, the common man cannot even dare to dream of sending his kids to the best schools. A friend of mine told me recently that he paid almost INR 1 lac to get his daughter admitted to a kindergarten. 1 lac for a kindergarten?

The problem is not just about demand - supply for good schools / education. It is the failure of Government to rein in private schools for charging exhorbitantly. This is because of the lack of effective policy for the governance and administration of education sector and to make good education affordable to all. True, agreed that in order to make good education affordable to all, few will have to pay more so that others also can afford the same quality of education. But, 1 lac for kindergarten admission cannot be digested. Having said that, if a parent pays more for his child, he is bound to ask for that "extra" for his child so that his child is differentiated from the children who don't pay as much. This cannot be controlled or prevented until Government intervenes with a strong policy to regulate the education sector and creates a level playing field for all. Alternatively, the Government can stop all privatisation of education sector and make it a State subject. After all, what rationale does Right to Education (RTE) serve if quality education is not affordable to all?

It is clearly the Government's lackadaisical and half hearted approach that has lead to such a mess in the education sector. And, that happens to be the first that has to be addressed so that every child in this country gets quality education as promised by Right to Education. Until that happens, the chances of affordable economics of life is very grim & may not be realized until the distant future. I am sounding not just sceptical but cynical as well, while being open to optimism and hope.