Interest Rates need relook

Tackling inflation through high interest rates can be only a temporary measure. Keeping interest rates high over a longer period can have following implications:
A. Increases the cost of goods, specially products of capital-intensive industries like steel, cement, power etc.
B. Discourage entrepreneurship due to high cost of capital
C. Increases the cost of living for buying capital assets like House, Cars, Consumer Durables
D. Increases the cost of services like transport, electricity as they are capital intensive.










It is high time, we take stock of the situation and resist of just keeping the interest rates over a long period. It can be counterproductive or is it already so in India, where we find high inflation rate instead of high interest rates.

Entrepreneurship

It is said that Indians have entrepreneurship in their blood. But of late, we are finding young boys and girls prefer to go for jobs instead of joining their parental business or start a new one. Some people say that these young guys want to enjoy easy life than a hardworking businessman. But these people will be surprised to know that their kids are working harder than they have ever done it. Most of these young boys and girls prefer hard-pressed private jobs than the easy government ones. If these people wanted an easy life, why they prefer to work extra hours in a private organization. Is it only for money or something else? It is not that they want job satisfaction and recognition for their hard work and efforts. Businessman parents need to realize this and discuss the growth strategy of their business with their children and learn to respect their ideas. We will see a huge change in their attitude. They too want recognition and respect.