Modi & Trump Giving Their Economies Self-Inflicted Wounds: Jairam
The global markets have been sent into a tailspin after the White House announced new tariffs, causing a significant decline in the Indian stock market. The Sensex opened over 3,900 points lower, while the Nifty opened over 1,000 points below. Amidst the chaos, Congress leader Jairam Ramesh has come down heavily on Prime Minister Narendra Modi and US President Donald Trump, accusing them of giving their economies self-inflicted wounds.
In a scathing tweet, Jairam Ramesh said, “It’s no wonder that Mr. Modi and Mr. Trump describe themselves as good friends. Both are experts in giving their economies self-inflicted wounds.” His remarks have sparked a heated debate on social media, with many calling out the two leaders for their protectionist policies.
The timing of the tweet couldn’t be more apt. The global economy is already reeling from the impact of the COVID-19 pandemic, and the latest tariffs announcement has only added to the uncertainty. The Indian rupee has also taken a hit, with the currency slipping to its lowest value against the US dollar in the past few months.
So, what exactly are these self-inflicted wounds that Jairam Ramesh is talking about? In the case of India, the government has been accused of pursuing a series of policies that have hindered economic growth. From the demonetization of high-denomination currency notes in 2016 to the recent introduction of a complex tax regime, the BJP-led government has been criticized for its lack of understanding of the economy.
The Goods and Services Tax (GST), for instance, was introduced with great fanfare, but its implementation has been marred by controversy and confusion. The tax regime has been criticized for being overly complex, with multiple slabs and exemptions creating confusion among businesses and consumers alike.
Similarly, the demonetization of high-denomination currency notes was touted as a move to curb black money and corruption, but it ended up causing widespread hardship to the common man. The move led to a severe cash crunch, with many small businesses and daily wage earners struggling to access their money.
In the case of the US, President Trump’s protectionist policies have been a major cause of concern for the global economy. His decision to impose tariffs on imported goods, including steel and aluminum, has sparked a trade war with several countries, including China, the EU, and Canada.
The tariffs have led to a surge in prices, causing inflation to rise and putting pressure on businesses and consumers alike. The US economy, which was previously booming, is now showing signs of slowing down.
The impact of these policies is not limited to the economic sphere. They have also had a significant impact on the social fabric of both countries. In India, the demonetization move led to widespread job losses and a significant decline in GDP growth. In the US, the trade war has led to a decline in consumer confidence, with many Americans feeling the pinch of higher prices and uncertainty.
In his tweet, Jairam Ramesh has also highlighted the irony of the situation. Both Modi and Trump have been known to describe themselves as champions of their respective economies, but their policies have ended up causing significant harm.
It’s no wonder that Mr. Modi and Mr. Trump describe themselves as good friends. Both are experts in giving their economies self-inflicted wounds.
— Jairam Ramesh (@jairam_ramesh) November 5, 2023
Ramesh’s remarks have sparked a heated debate on social media, with many calling out the two leaders for their protectionist policies. Some have argued that the policies are necessary to protect domestic industries, while others have criticized them for being a form of economic nationalism that is harmful to the global economy.
As the global economy continues to navigate the uncertainty caused by the tariffs and trade war, it’s clear that the impact of these policies will be felt for a long time to come. In the meantime, Jairam Ramesh’s tweet serves as a timely reminder of the importance of sound economic policy and the need for leaders to put the interests of their countries above their own personal agendas.
Source: https://x.com/Jairam_Ramesh/status/1909116322992009326
