E agencies, BT poll respondents say

cost of living for the poor, import duties have to be reduced. The increase in cost of living is attributable to the economy having more money (currency and credit) in circulation than goods and services it produces compared to the previous year. The budget deficit (and printing money to fund it) is the primary cause for demand side inflation. Depreciation of the rupee contributes to supply side inflation.

On calls for a wage hike:

Workers seem happy with the government policies and this is amply reflected at recent elections where they have overwhelmingly given the government a mandate; based on this giving a wage hike is not necessary. A wage hike may be imperative for state workers since life is difficult for everyone but the poor will bear the burden of the salary increa- ses given to state workers (benefitting also politicians) through higher taxes, or borrowing or printing money (inflation). A wage hike for rulers and their (public) servants has to be affordable to productive citizens. If inflation is kept down and the exchange rate stable it is possible for tax spending state workers to live comfortably with a smaller salary hike. The answer is to stop recruiting unemployable graduates – employ them in productive areas - reduce the state workforce and raise their salaries. This will also help keep inflation and interest rates down, making housing loans cheaper. But for that the state workforce has to be reduced or allowed to shrink with retirements. That way everyone will benefit. It is a shame that when masons, carpenters, construction workers, bread deliverers, fish mongers and street sweepers are doing gainful work in productive sectors (without even A/Ls in some cases), university graduates who have learned at the expense of tax payers are becoming tax spenders for life. Wage increases would erode the competitiveness of goods and services produced and fuel inflation. One way to break the vicious cycle of inflation, wage increases, more money in circulation, depreciation of the currency and supply side inflation, more and more demands for wage increases is to compete in the global market place, improve productivity, produce more goods and services and overtake the growth of money supply. In short the government and the people have to tighten their belts and reverse the trend. This should be done gradually to avoid a contraction of the economy due to a drop in demand and to avoid a loss of jobs.