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WHY CAPITALISM IS AGAINST SUBSIDY?

WHY CAPITALISM IS AGAINST SUBSIDY?
WHAT IS CAPITALISM?

Capitalism thrives on cut-throat competition and wants minimal state intervention.( capitalists want everything to be left to the market forces)          WHY CAPITALISM IS AGAINST SUBSIDY?

-They want that they should be left free to use all the resources and fill their coffers with trucks of money. Capitalists have rajnikant attitude(I will do all)

HOW IS CAPITALISM BENEFICIAL?

-In pure form of capitalism state intervention is least and the market forces decide what has to be produced(good and services)                              WHY CAPITALISM IS AGAINST SUBSIDY?

-One thing is sure that in open competition one can survive if one is efficient and innovative(see the cut throat competition amongst the cell phone manufacturers, Every second day  Samsung or apple comes out with new models and hence people feel magnetized to buy them so that they can upgrade their so called status(rat race)

WHERE DOES CAPITALISM FAIL?

-Capitalism fails to take care of the poor people who need support of  the  government. Moreover, people expect good services from the government in terms of health(hospitals),education(schools and colleges) and infrastructure(roads, power, railways) because people pay taxes to the government. moreover capitalists  will not give money to set up schools or to built houses for the poor people(why would Mukesh  finance do “boond zindagi ke” ie polio drops)

-Capitalists have money running in their veins and they want to mint money at any cost.

WHO NEEDS SUPPORT?

-Farmers(kisan)

-Rural people(gaon ke log)

-Women(they really need lot of support,not every one is Jhansi ki rani)

-Small scale industry

-Tribal people                          WHY CAPITALISM IS AGAINST SUBSIDY?

-And lot no of other sectors of the economy.

WHO PROVIDES SUPPORT & HOW?

-To help the society develop in an equitable manner government supports different sections of the society by providing subsidy.the major subsidy is provided for the FOOD,FUEL AND FERTILIZER.

1.Food(subsidized wheat and rice from the pds(dipu))

2.Fuel(sasta petrol diesel)

3.Fertilizer(to increase the productivity of the crops)

WHAT IS THE SUBSIDY ISSUE? WHY CAPITALISM IS AGAINST SUBSIDY?

-Subsidy stems from protectionism and capitalism is against it.

-Protectionism is sin-qua-non of socialism(subsidy gives protection to different section of the society as they cannot buy the goods at market price)

-Indian government is providing subsidy and it has underpinnings of populism.government is spending about 2% on the subsidy(huge money, but not as huge as adnam sami lolz) and because of it the deficit is increasing like anything(deficit means ghata) and governments have to borrow money from the market to finance themselves(A day will come when the government itself will fall under BPL LOLZ).          WHY CAPITALISM IS AGAINST SUBSIDY?

-Nobody like poor and because of it the credit worthiness of the governments decline  and investment goes dwon . In case of less investment there will be no dollars (Goras come to India and bring dollars )and our Manmohan Singh ji can’t afford to buy petrol even for his own 2nd hand car lolz)          WHY CAPITALISM IS AGAINST SUBSIDY?

ALSO READ : https://www.brainyias.com/parallel-economy-in-india/

Indian Economy

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