News Tamil Nadu

DMK Min PTR Makes Unwarranted Comments About Economist Sadanand Dhume, Gets Royally Slammed

May 20, 2024
The Commune

Palanivel Thiagarajan (PTR), the current DMK Minister of Information Technology and Digital Services, was made to eat crow as he came in support of Congress’ free money scheme.

Despite PTR’s background in finance management, his endorsement of the Congress party’s nightmarish idea of “Wealth Redistribution” has led to ridicule from economist Sadanad Dhume as he highlighted the adverse consequences of the economic policies he endorsed.

Sadanand Dhume ridiculed the last-minute advertisement promoting the Congress party’s poll promise of the Mahalaxmi Scheme, which promises an unconditional cash transfer of ₹1 lakh per year to the poor.

Priyanka Gandhi Vadra endorsed the programme as, “Crores of women of the country, who are struggling with inflation, are waiting for their rights. Congress’s Mahalaxmi Yojana will open the way to prosperity for every family. ₹1 lakh will be deposited annually in the account of an elderly woman from every poor family. The situation will change.” in her official X handle.

The ad depicts women wearing saffron scarves, suggesting a BJP event, urging villagers to send their women to a rally. In response, several men mention that the women are in the “1 Lakh ki line” (the line for Rs 1 lakh). The women arrive at a location with a long queue and a signboard reading ‘₹1,00,000 Mahalakshmi Yojna.’ When asked why she is there, one woman explains that the money is not a lottery but their “right.”

This advertisement was mocked by Dhume, who commented, “Both true: 1. Effective ad. 2. Insane idea.”

 

Later on 16 May 2024, Sadanand Dhume posted on his official X handle, commending PM Modi for his response to a query about inequality by emphasizing the importance of not striving for absolute equality if it means everyone remains equally poor. He argues that it’s acceptable if some individuals accumulate wealth first, as this is a natural part of a country’s development process. Modi also highlights the necessity of respecting wealth creators instead of criticizing them.

Dhume wrote, “Good to see Modi echo Deng Xiaoping on Aaj Tak just now. When asked about inequality Modi turned the question around and asked the journalist (@rahulkanwal) if he would prefer it if everyone in India was equally poor. It’s okay if some people get rich first, said Modi. That’s how countries make progress. And wealth creators deserve respect, not admonition.” further added, “In a normal country this would be an obvious, commonsensical point. In India, steeped in nearly 100 years of leftist economic rhetoric, it’s a big deal.” further quoting UNDP estimates to valid his notion, “UNDP estimates that India has lifted more than 415 million people out of poverty since 2005, and that poverty reduction has accelerated since 2015. The poor in India are not getting poorer, and anyone who believes that they are is economically illiterate.“

 

Later, he also mocked the Congress sympathizers that, “People are all upset with me because I praised Modi for making a sensible point about how to view inequality in a developing country. (You should allow some people to get rich first instead of forcibly keeping everyone poor in the name of equality.) This is not political partisanship. I would just as happily praise Rahul Gandhi if he said something sensible about the economy. Not my fault that he chooses instead to spout nonsense about lakhs of rupees of free cash pouring into bank accounts khat-a-khat, khat-a-khat.”

 

In the name of effective counter, the former finance minister and current IT minister of DMK, supported the Congress idea with collected and shared data points. He argued that there are trade-offs between growth and inequality, debunked the trickle-down fallacy, and pointed out the levels of agglomeration and deprivation reminiscent of colonial-era capitalism and crony capitalism, which no humane or reasonable person would defend. He suggested that Mr. Dhume may be either stunningly ill-informed or something much worse.

The data shared by IT Minister Palanivel Thiagarajan highlights the long-term trends in income inequality in India between 1951-2022. It reveals that the bottom 50% of the population has seen no progress, remaining deprived, while the middle-income 40% has benefited, and the top 10% has experienced a decline. Additionally, the data illustrates wealth inequality from 1992-2022, showing significant growth in the income of the top 1%, particularly after 1992, and substantial growth in the wealth of the top 10%. Surprisingly, both income and wealth for the top 10% have increased concurrently. Furthermore, when compared globally, India’s top 1% has higher income levels than Brazil, the USA, China, France, and South Africa, ranking third in wealth. The idea of PTR was to send message that WDI data underscores the increasing inequality in India, emphasizing the necessity of income redistribution and economic measures.

PTR stated that, “There are Growth vs Inequality trade-offs There is Trickle-down fallacy There is Colonial Era / Robber Barron / Crony-Capitalism level agglomeration & deprivation – which no humane/reasonable person will defend Mr. Dhume is either stunningly ill-informed.. Or much much worse.”

In response to the condescending X post of PTR, Sadanand Dhume royally slammed the DMK Minister by stating, “Thanks. Totally agree that, as you famously pointed out, the accumulation by certain politicians of ₹30,000 crores in a year does bring to mind robber barons. Hope you will continue to bring such problems to light.” This critique arises from PTR’s purported audio accusing Chief Minister MK Stalin’s family of making more money in one year than they’ve made during their life time.

Dhume further nudged that he fundamentally disagrees with the notion that a country with a nominal per capita GDP of $2730 should excessively prioritize inequality. He stressed that the primary focus should be on eradicating poverty, which necessitates economic growth. Dhume expressed that he isn’t particularly concerned if certain individuals, such as DMK leaders, become wealthy as long as the lives of the impoverished are consistently improving. He argued that being excessively preoccupied with inequality is a luxury that India cannot afford, and any responsible politician should acknowledge this fact.

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