Liberals' denial of farm crisis II
Earlier, I posted about how some commentators have been constantly trying to undermine the farm crisis, and how it comes in way of creating discourse on long-term strategies
A famous commentator's recent column is a good example. In this column, the columnist who is also an economist, cites the increasing MSPs for rice and wheat to argue that economic crisis is not the cause of farm crisis but a political agenda is.
This is precisely this type of analysis that I was referring to in my earlier post, when I referred to emerging data witches using data to support pre-determined conclusions.
In this case, the columnist cites only YoY increase of output prices. An objective analysis would be to consider inflation adjusted prices (real prices) and also increase in input prices. Without considering these two factors, the increase in output prices doesn't tell anything about the situation of farmers.
As another column rightly points out, the inflation adjusted prices (real prices) of rice and wheat have in fact been falling since 2008-09. For instance, the real price of per quintal wheat was 220 in 2008-09. It fell to 170+ in 2016.
It's important to note that the logic of considering real prices and input costs is not because of lack of knowledge to do so. One doesn't even need to be an economist to know this. This is nothing more than pure blatant dishonesty.
One can oppose loan waivers for many reasons but it shouldn't come at the expense of facts. Some may be thinking that denying the farm crisis is going to solve the problem. One can't be more mistaken than that. It only worsens the problem.
PS: I do acknowledge that the term liberal is abstract. There are many shades of it. Also, not every one who is a liberal does this. The purpose of this post is to point out a general phenomenon among "some" prominent people, who drive the media discourse.