Why do newspapers have such strong political inclinations?
There was a pro-Congress editorial in a local print about how the loan waiver is a glittering example of its farmer-friendliness. Now, I like the Congress way more than I will ever support a communalist BJP. But the loan-waiver is a very bad move.
Who is suffering here? I don’t know. Maybe the money, if invested in better fertilizers/irrigation/education, could have had better results. The government and the banks are surely not losing. The national banks that are going to write off loans, will be issued government bonds of an equivalent amount. That’s as good as money. If the treasury is doing well, government will liquidate the bonds and pay the banks. If it does not feel like paying, it will just raise capital requirements for banks, so they’ll have to increase their reserves.
Such an example of how bad politics reigns over common sense, and the right thing to do.