Thursday, July 4, 2013

Consumers and Prices of consumer durables

This refers to your editorial Paying the price (Business Line, july4,2013)The economy itself has become high cost thanks to erroneous taxation, imported inflation, domestic inflation, the aggressive pricing pursued without really assessing the affordability of a large segment of population and the never ending greed to maximize profit without any ethics or values . The service tax, low rate of interest on savings of the people, high cost of borrowings, uncertainty of continuing in jobs because of employment conditions in a deteriorating economy have been the major issues affecting the general consumption.  Above all, lack of confidence to survive in the whole system as to what is in store for the future in the absence of any social security, lack of accountability on serious lapses in the event of failure of the institutions etc have been lingering in the minds of people which find expression in the lack of demand for consumer items and general consumption pattern. The practice of having maintenance expenditures on every consumer item discourages the demand for such items. 
Dr.T.V.Gopalakrishnan
(This comment is in response to the editorial paying the price that appeared in Business Line dated 4th July 2013).

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