MIRAGE

The migrant workers,
Our house makers, product makers,
Those who make possible the existence of manufacturers,
Presently clueless about their futures.
But what they know,
They have to reach their homes at any cost!
Scorching heat can't stop them to take extreme measures,
They are walking thousands of kilometers with their children,
Devoid of money, food, water and shelter,
They are dying of hunger!
Their pain is unbearable,
Words cannot express their dismal.

Government has taken some steps to lessen their troubles,
But upto what extent these are helping workers?
Train fares are so high, they are not able to buy the tickets,
And if they, unable to get on it.
And some trains are running so late,
People are dying of hunger in trains.
Then what difference it makes?
Is there any cure for their pains?
.
.
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Ohh! I remember,
Prime minister has announced economic relief package of 20 lakh crores(10% of GDP),
And held 5 days marathon to unbox this package.
So, what is in the box?

First, Liquidity stimulus to MSMEs, agriculture sector, middle class, organized sector workers and migrant laborers.
It is given by providing liquidity through lines of credit,
It seeks to focus on the supply side,rather than on the demand side.
Secondly, Reform measures are taken in various sectors with a longer term perspective viz defence and allows the inclusion of private sectors in coal mining, PSUs and ISRO.

But what have been done to stabilise the economy in short run?
Or is it suffice for reviving Indian economy which is on the verge of collapse due to prolonged lockdown?
Will it generate jobs which have been lost in this lockdown?
What is in this package for the migrant workers who have heard the big number 20 lakh crore?

In 1929 Great Depression, the economists emphasized on increasing the demand first to kickstart the economy.
But in this package, the liquidity stimulus provided by government to improve demand in the economy is very less( by some estimates only o.75% of GDP). Government has provided more in liquidity support for supply side intervention. This has been done to balance fiscal prudence with stimulus to the economy while not resorting to inflationary demand driven Keynesian economic principles.
As there will be little or no increase in demand, there is no use of giving liquidity stimulus to MSMEs.
People have still no money in their hands then how will they be able to sustain their lives?
But government is obsessively concerned about fiscal deficit. It doesn't want to increase its expenditures even in this crisis. It offers loans to manufacturers, but how will they return it when there will be no consumption of goods as people have no money to buy products. The accounts will become NPA and increase the fiscal deficit in future.
Thus it is time for the economists in government to put on their thinking caps.

This package has proven to be a MIRAGE in the desert, an illusion created by government in this crisis. It is just a myth of relief without any veracity.

Instead of politicizing the situation, government should focus on the current problems of people arised due to lockdown and forced the migrant laborers to walk barefoot to reach their homes.