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Bilal Hassan · #46 Friday, June 14, 2013

Quote:

Originally Posted by Invincible

I don't know why are you unnecessarily dragging Islam in this Budget & Battered Economic debate (which revolves around INTEREST)

However, One & Only salient feature of this budget is: If you earn 400K a year, you will pay tax. If you earn 400K a day, you will not.

My friend Islam is the foundation of everything.....and i think whatever we do or say, Islam must be the quintessence of that.....People were lamenting at not increasing the salaries, i just told them that do not long for increment rather seek Barkat in your incomes.....However one thing is very sure that people would only appreciate what is away from Islam.....true said Sir Muhammad Iqbal.....

وہ زمانے میں معزز تھے مسلمان ھو کر
اور تم خوار ھوے تارک قرآن ھو کر

Now what is happening is that if you want your opinion be appreciated just talk what is against Islam and people will adulate you, i am well of without such appreciation.....

Stay Blessed....

Quote:

Originally Posted by sabahatbhutta

I don't agree that measures taken are solid and they have not done things for window dressing. Distributing useless laptops to students who instead of taking classes spend time in canteen watching videos and songs on laptops, and giving stipend to masters degree holders instead of giving jobs is stupid. They should have increased Direct taxes. Why the farce of flooding economy with indirect taxes? Taxing banking sector means people will cease their money from banks and hence less investment. In my previous post I have stated that we will have to give more sacrifices and thats it. But the sacrifices should be on equal footings. Investors and Landlords should also sacrifice something

Its not a bad budget for investors neither good for 90% non-industrialist population.
No increment in salaries means people will be left with less savings as S=I, so less savings mean less investment. Means there will be inflation accompanied with unemployment i.e Stagflation.

I know a friend of mine who was jobless but now he earns 25000/month thanks to the Laptop given to him....however that is beside the mark.....
You are always giving incomplete equation, S= Y-C.....now if the Indirect taxes are increased, the Demand Pull inflation will come down, and if the demand pull inflation ebbs then after Consumption money will go to savings as per your equation....if you take into account the implication of Philips Curve then the Inflation and Unemployment cannot occur simultaneously, and if you want to decrease the Inflation then the unemployment will have to be accepted and if you want a decrease in unemployment, you will have to live with higher inflation.....so your analysis is wrong in that Unemployment and Inflation will both occur.....