A Modest Proposal to Cut Inflation

Our esteemed Prime Minister, Dr Manmohan Singh, has precisely the right solution. High salaries to employees of  Multinational Corporations is the cause of inflation. Giving salaries to too many people causes them to chase goods pushing up their prices. Instead, salaries at the low levels should be cut and it should be increased at the highest levels. That will reduce inflation in two ways. First, the consumption basket of the rich is different. The likes of Anil and Mukesh Ambani do not compete with the poor people as much as people like me do for their consumption basket. Second, super-rich people save more than merely rich people,  putting downward pressure on prices.

Increasing income disparity is just the right approach to controlling inflation.