Income Shifts and Recession - A Comment

A Comment Samuel Paul IN his article "Income Shifts as a Factor in the Recession" (July 27, Medhora has argued that the income
Medhora has argued that the income shifts in the Indian economy in recent years have led to lower expenditure by government and industry which in turn has brought about the recession. According to him, the income shift has favoured the agricultural sector and more particularly the bigger farmers. Since there are limits to the use of taxes for tapping agricultural incomes and since agriculture does not offer adequate demand for industrial products, Medhora suggests that price policy should be deliberately used to transfer income from agriculture to the spending sectors of government and industry.