As regards recession we must now depart from the classical model of economics. An economic boom was caused due to technology. With slowdown in the dramatic technological development the growth was sure to plateau. A new technological product is required to drive real sustainable growth. Unrealistic petrol prices are causing recession. Cheap oil is solution to our economic woes.
Oil is not so limited but the real technology intervention will produce an alternative to oil. The immediate remedy is to ask Saudis and others to pump more oil.
The pricing of oil can not be subject to a cartel when every other thing in the world is priced at market rates based on free competition.
For an economy to be showing good growth, it is essential that input costs are low so that businesses make sound profits and make further investments. The inputs costs include the cost of energy, cost of money, cost of labour and cost of raw material. Thus energy prices must remain low, interest rates must remain low, wages must remain reasonable and commodity prices must remain low.
Any deviation is bound to cause peril to the economy. How the above measures are achieved is the real acid test for decision makers.
The West can not afford to lose the Economic Leadership of the World because the West remains the source of all technologies. Technology will ultimately result in a leisure society but that being little away as yet working still is required for the mass population.
Ideally in a developed economy All families ( husband, wife and minor
children ) shouldl be provided with a min. 1000 sq. ft. concrete houses fitted with all necessary household gadgets like fridge, tv, computers etc. along with appropriate education and employment..
Electricity sector should be delicensed and electricity should be priced at Rs. 2.50 per unit for all categories of consumers . Similarky Petrol should be sold at Rs. 25/- per litre max.
An Energy Policy be in place to safeguard national interests and make industries and services globally competitive as also to prevent the fleecing of customers
Personal Income Tax rates should be fixed at 15% max.
Corporate Taxes could be fixed at 20% max. The number
of total taxes in any country should be reduced to four or five ( income tax, customs, excise, sales tax) .All other taxes must go.
Needy citizens should be given cash assistance directly into their bank accounts.
Education should be delicensed. Good Quality education must be made universal and higher education must be made more affordable to achieve a highly qualified work force. Such arrangements will increase the national productivity and economic prosperity can be achieved.
