The Indian Economy Blog

October 30, 2005

Middle-class Interest Groups

Filed under: Politics,Regulatory reforms — Amitabh @ 8:32 am

Following up on the post about interest groups holding back reform. We usually think of these groups as trade unions or cussed farmer lobbies. How about the pampered urban middle-classes? Shekhar Gupta castigates the citizens of South Delhi for trying to undermine reform of the water supply system.

1 Comment »

  1. What this columnist does not relate in the article is that the salaried middle class pays bulk of the government revenue. The “poor” described in this article do not pay any taxes.
    The uber-rich use professional accountants and legal loopholes to circumvent confiscatory taxes.

    The word “untaxed” has been used at least twice. If a bore well in one’s backyard should be taxed then so sould the air we breathe for free.

    While the writer rightly bemaons socialism and makes a good point that all people should pay for the goods and services they consume, he has not proposed any free market solution; his only solution seems to be to tax the middle class even more. A lot of good that will do!!

    Comment by Vivek G — October 31, 2005 @ 6:11 pm

  2. The reaction seems over the top – this group of people has benefitted a lot from liberalization and yet they are unwilling to countenance a small increase in rates for water usage.

    And yes, water is not ‘free’ – water rights need to be bought and sold like any other commodity.

    Comment by amitabh — November 1, 2005 @ 11:12 pm

RSS feed for comments on this post. TrackBack URL

Leave a comment

Powered by WP Hashcash

Powered by WordPress