It is easy to sit in India and look at the problems in America and Europe. For many of us it has also become fashionable to say “Americans do not know how to save” or “Americans do not study enough.”
But PLEASE do remember it is the economy which is closest to reality. People pay market prices for everything that they consume. There is no subsidy. Except of course some things like farm products.People pay market prices for energy, transport, education, health services, and even basic sanitation, …..
In India we are STILL being pampered with
Subsidized public transport:If we were to privatize our railway services, or charge at least variable cost in full + a portion of the fixed costs; the fares will have to go up by 200-300%, at the minimum. After that, it has to be indexed.
Subsidized education:Good, well run schools in Mumbai are subsidized – and the students pay Rs. 8 per month per child. Is this low? Well my Mother paid such fees – and she is 74 years old! So much for inflation.
Subsidized sanitation:The charges we pay for keeping our houses clean – being provided by the Municipalities is not commercially priced, Far from it, this will go up, and go up dramatically soon.
Subsidized water:If you have grown up in some lucky parts of India you do not even know what a water shortage is. This excellent potable water is perhaps the cheapest in the world!
So even if you have a high income, be prepared for certain expenses going through the roof…when you least expect it. The Americans on the other hand gets paid for the job he does, he could get laid off, he could change his career – from selling cars, to selling life insurance, to being a carpenter. But, remember, he pays market price for absolutely everything he uses.