Tuesday, February 4, 2014

100 % DA : What Economists would say ?

This is the title news of  Malayala Manorama dated 3rd January.




The report indicates that  this situation ( 35% increase over the last two years ) is due to the high rate of inflation. True.  Economists would say  that the DA increase (and so the total wages  ) is a reason for the increase in Inflation, though not the only reason. ie. It's a Catch22 situation !  The question is, should the high wages be controlled for controlling the inflation ?  Yes and No.
But the fact is, Economists and so the Govt would think of  limiting the annual wage rises, not only in Govt sector, but also in Private and other sectors as well, as a means to control Inflation.

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