Infrastructure Spending Will Not Revive the Economy - WSJ.com

Back in the 30s when Infrastructure spending got us out of the Great Depression, it was the infrastructure of the future - highways, dams, etc. Today, the equivalent would be spending on the 21st century infrastructure - technology, communication, healthcare, education. I agree with Andy on all the areas. I might add additional areas like - increased spending on radically new cures for diseases like cancer, diabetes and a variety of genetic disorders, making our schools the best in the world bar none, spending on new energy technology - solar, wind, gas and also safer nuclear power.

Infrastructure Spending Will Not Revive the Economy - WSJ.com

How much difference 9 months make

I just noticed my blog post from last June and gas was touching almost $5. This weekend I took another picture with gas at close to $2!
How long do we have before inflation sets in? I say drive all you can - see California. I can recommend this great show - "Bay Area Backroads" for some excellent weekend driving ideas:









Here's the picture from June 2008

Is democracy a panacea?

A lot of people in India are feeling that democracy is overrated - it hasn't helped us deal with the national security issues and the tough economic decisions - specially on infrastructure fall prey to political in-fighting and vote bank politics. The Western media though continues to give India higher marks than China - perhaps to fulfill its own prophecy!

I'm kinda divided on this - I see good reasoning on both sides of the debate - haven't come to a conclusion yet. What do you think?

Buy an apartmnet, get a BMW free

Another one of "This happens only in India" phenomenon. I don't if this signifies a weakening of the property market or it's just a reflection of the enormous wealth being built up in the country.

In India, Even Gods Are Going Hungry

Poor Struggle to Donate to Temples as Food Prices Skyrocket

Check out this story from Washington Post today. All's not well around the world. India and China - countries that are often held up as examples of rising standards of living are facing problems. Rampant inflation, specially for energy and food have begun to impact the fragile economies - much of which is reliant on the an abundant supply of cheap labor pool.

Sign of things to come - Dollars no longer accepted at Taj Mahal

Dollars no longer accepted at Taj Mahal

The Associated Press

Article Launched: 01/03/2008 07:41:21 AM PST

NEW DELHI—In yet another troubling sign for the greenback, at least one of the seven wonders of the world is now off limits if you have only U.S. currency in your pocket.

India's tourism minister said Thursday that the dollar will no longer be accepted at the Taj Mahal and other national tourist sites.

For years tourists visiting most sites in India were charged either $5, or 250 rupees.

After falling 11 percent in 2007, hitting nine-year lows to hoover around 39 rupees, the dollar is out.

Charging only rupees now seems more practical and will save tourists money because "the dollar was weaker against the rupee," Tourism Minister Ambika Soni told the CNN-IBN news channel.

"Before the dollar lost its value, there was a demand to have (admission tickets) just in rupees," he added.

The Taj Mahal, India's famed white marble monument to love, began refusing dollars in November.

It means just one more place where American tourists will have to shell out more money—now nearly $20.

And it's likely to get worse in booming India.

"We expect a slight appreciation of the rupee to continue, although it won't be as dramatic as last year," said Agam Gupta, head of foreign exchange trading at Standard Chartered Bank in India.

The dollar has fallen against most major currencies, and it has lost ground against the rupee due to an influx of foreign capital, said Gupta.

The dollar hit record lows of $1.4967 against the euro on Nov. 23, the weakest since that currency began trading in 1999, and was down against almost every major currency Thursday.

Service sector jobs - the new panacea for the Indian masses

Here's a well researched report from Wall Street Journal on the growing impact of the service sector jobs - particularly retail jobs - but it raises another question - one reported some time back in Fortune - namely, the demise of small retailers.

Yes, it seems that the coming of big retail to India will generate a lot of service jobs - but perhaps a lot of these service jobs shall be the only options left for small retailers and their employees. The real question still remains - is this trend of service jobs in India just a lateral trend - a shift from unorganized, small business sector to corporate, large business? Not that there's anything wrong with this - India is perhaps a couple of decades behind other Asian countries where this has already happened. However, a deeper analysis of the economic impact is required before we start raising hopes of millions of Indian masses.

What do you think?