how to reduce Inflation?

Our suggestions to our Prime Minister Sh Narinder Modi Ji dated June 13, 2014 on controlling inflation;
1. Cap maximum wage in govt sector to Rs 70-80,000.
2. Cap maximum wage in private sector to % of tax revenue given by the  concerned company.
3. Reduction in minimum wage will boost employment.
4. Increase land area under cultivation.
5. Increase supply across the board of all products, even if it is by cheaper imports.
6. Give job reservation to those having One child. this will control population.
7. Reduction in interest rates will reduce cost of manufacturing.

8. The only way to put inflation in reverse path is to reduce wages, duties and support prices. Within 6 months, purchasing power will be back to normal and deflation will be in place.

Interest cost reduction and Wage reduction leads to lower demand leads to lower prices. Wage reduction leads to decrease in cost of manufacturing leading to more factories, more factories leads to increased employment which means increased output and further lower cost leading to lower prices. Lower wages means lessor NPAs as lower cost means more profits means more factories means more competition means further lower prices.

Decreased support prices means lower prices and lower overall inflation. increased support prices of wheat leads to rise in food prices leads to hyper inflation. lower duties means lower cost means lower prices. eg sugar for all has increased by Rs 2 because duty was increased to 40% to save some industrialists we kill consumers.

Kapil Dev Aggarwal