Banks are under pressure, the government is not in a position to help: Abhijeet Banerjee

Banks are under pressure, the government is not in a position to help: Abhijeet Banerjee

Nobel Prize-awarded economist Abhijeet Banerjee on Sunday said that the banking sector in the country is under pressure and the government is not in a position to get it out of the crisis by giving stimulus package. Talking to reporters during the Jaipur Sahitya Mahotsav, Banerjee said that the softening of demand in the automobile sector also shows that there is a lack of confidence in the people about the economy.

Biggest pressure on financial sector

He said, 'The financial sector is currently the biggest pressure center. The banking sector is under pressure and this is a matter of concern. In fact, the government is not in a position to get out of the crisis by giving it a stimulus package. ”Banerjee said,“ We ​​also know that the car and two-wheelers are not selling due to the demand slowdown in the economy. All this indicates that people are not confident of the rapid growth in the economy. That is why they are not spending. 

Poverty alleviation will be affected

The author of 'Good Economics for Hard Time' also said that softening of the economy will have an adverse effect on poverty alleviation in the country, as urban and poverty sectors are interlinked. He said, "Poverty alleviation takes place on the basis that the urban area generates low-skill employment and that the people of the villages get jobs in the urban area that bring the money back to the village." The Indian-American economist said, 'In this way, the growth from the urban area goes to the rural area and as soon as the urban area softens, the villages are affected. The people of the villages do not get employment in the construction sector and this affects the rural area. '