Job reservation backlash

This refers to the editorial ‘Retrograde idea’ (July 19). The recent job reservation Bill of Karnataka is ludicrous. The States is India’s IT headquarters, housing thousands of medium and large size tech companies which contribute significantly to the State’s GDP. Skilled labour and modern infrastructure are vital for IT companies.

In the past States like Maharashtra, Haryana, Andhra Pradesh and Telangana tried to float similar policies but had to withdraw them abruptly due to opposition from across industries. Such moves by any State would be a disservice to skilled and productive workers.

GS Santharam

Madurai

Biden on the back-foot

This refers to ‘Biden gets a reprieve, but a temporary one’ (July 19). The latest turn of events make it clear that Trump is surging ahead with the sympathy wave created by the assassination attempt and the inherent weakness prevailing in the Democratic party, caused largely by the ineffective leadership of Biden. The Democrats haven’t been able to leverage the court cases against Trump.

AG Rajmohan

Anantapur, AP

Splurging on weddings

Apropos ‘Wedding expenses drive farmers further into debt’ (July 19), societal pressures play a big part in farmers celebrating their children’s weddings on a scale they cannot afford. Many small farmers are forced to sell whatever little holdings they have in order to pay for the expenses incurred for the weddings. While it may seem economically foolish to borrow to celebrate weddings. it does create a bonding among the villagers which is absent in urban India.

Going against the trend of celebrating grand weddings would mean the family facing the taunts and jibes of their tribe for generations.

Anthony Henriques

Mumbai

Behavioural economics

The article ‘Does public policy need to be behavioural?’ (July 19) made for a good read. The consumer is rational to the extent of spending his scarce resources to get maximum satisfaction. However, irrationality creeps in his consumption behaviour since he is guided by monotonic preference too which in essence means he would like to have more of a good than even really necessary.

For instance, when the Tamil Nadu government offered television free of cost to every ration card holder in the State a few years ago, the rich and the poor gleefully accepted it.

S Ramakrishnasayee

Chennai

Interest on savings

The article ‘A case for tax waiver on savings’ (July 19) has made out a logical and cogent case for comprehensive examination of the real returns on savings and to consider waiving tax on savings.

It is a well known fact that a large section of people, especially senior citizens, depend on interest earned on savings, either in bank savings accounts or term deposits or in governments small savings schemes. However, the real returns on savings has fallen drastically, due to high inflation rate.

Making matters worse for them, government taxes those meagre returns on savings also. Banks also have not been considerate towards depositors.

They promptly effected changes in interest on loans in consonance with repo rate hikes in recent years, but the hike in interest rates on deposits was not in tune with the repo rate changes.

Kosaraju Chandramouli

Hyderabad