DesiPundit

In a recent verdict the Supreme Court upheld the 93rd amendment and Reservation act which enables the Government to have reservations for OBCs in educational institutions. Thus the limited number of higher education seats are now being divided among various groups with the Government acting as the pizza cutter. Atanu takes a look at this issue from the demand and supply perspective and says:

The shortage arises from the limited supply of seats in educational institutions. That shortage of seats is mandated by the government. The government mandates the shortage and then assigns itself the power to dictate how the rationing of seats will be done. That rationing is motivated primarily by vote-bank politics.

Now artificially created shortages are good for those who control the supply – whether it is about controlling the supply of diamonds or the supply of educational seats. In India’s case, government mandated shortage for the private profit of the politicians and bureaucrats is nothing short of criminal. It is responsible for much of the existing poverty in India and unless this situation is urgently changed will perpetuate poverty for the foreseeable future.