Saturday, March 27, 2010

Is it cheating/exploitation?

This is what I heard during conversation between RJs in RadioCity Bangalore recently.
RJ Pradeepa: Sir, Isn't it that wizards, astrolgers, swamijis, witches etc are cheating/exploiting people? (Kannada: Saar, e baba galu, maatavadi galu, swamigalu ella duddu kitkondu mosa madtaralva? )

RJ Upendra (Yes! our Sandlewood actor. He was RJ for a month or so) : How is it cheating/exploitation? (Mosa hege?) Suppose I sell Idli. If cost is Rs.4 and I sell at Rs.6, is it good/bad or cheating? Similarly, people go to these people and give Rs.10 or Rs.100 (in their capacity) and in turn get “peace of mind”. So what’s wrong in it?

I don’t go to such people. Hence I don’t worry.

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But, I felt, I was exploited when I went to Horanadu (a holy place near Sringeri) recently.

The hotel guy was quoting prices exorbitantly. I got room for Rs.300 per day. Next day, he charged (remaining rooms) some rooms at Rs.500 and others at Rs.600. In a way, I was lucky about my timing there.

Also, since there was mobile service except BSNL. I had to depend on STD booth. He charged me “STD service charge (Rs.3.40) + STD call charges” for making call.

Isn’t an exploitation?

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On the other hand, I charge “x” amount as rent to my tenants. The “x” is decided by me. I say rent is reasonable and fair. Truth is
- I can’t give prompt service (plumbing, electrical or other maintenance works)
- My rents are lower only “relative” to the rents in my locality.

So am I also exploiting people?

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Some more examples: Exorbitant ticket prices at multiplexes, parking rent for 4 wheelers at IT Park Bangalore (Rs.15 per hour!), fees charged by many schools in Bangalore.

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However if look into bigger picture, I see more. Let me explain.

Consider I invest in a property and rent it out. To buy the property, I take loan and I pay interest. To cover my interest expenses and other expenses, unless I am doing charity, I am bound to keep rent at certain levels.
Tenant earns money and pays me rent. I cover my expenses, pay interest to bank and retain profits. The bank covers its costs of managing money transactions and makes some profits.
Hence I see a chain of different entities(persons/organizations) involved. The "amount" of profit each entity retains is what decides whether it is cheating/exploitation. However it is difficult to make out if a product/service is reasonably priced or exploitation is at play.

The greed (to make money) easily takes over and it can lead to exploitation.

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Exploitation is kept under control due to competition among entities providing similar products/services. Also as a consumer of a product/service I have the "choice" of going for a product or service and hence controlling the exploitation.

However if I am addicted to certain brands, certain level of quality, certain level of comfort etc then I give an opportunity for product/service providers. And unless I make an effort to be Buddha, I continue to be dictated by my desires, giving an opportunity for exploitation.

What are your views?

2 comments:

  1. Comments from Google Buzz
    Pramod Dsouza
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    Generally accepted term for it is "Business" !!!. As long as it is done within the legal framework. Only two ways of doing it, ethical way and unethical way!!!.

    Ex1: If a village does not have school and if one private company starts by charging higher fees, it may be called exploitation, but it is nothing but Business and its a demand-supply and value-addition which determines the pricing.

    Ex2: Compare IPL salary (2008 Auction)- Virat Kohli - 12lakhs v/s Dravid - 4.5Crores ($1m). Although now one may rate Virat Kohli higher than Dravid in T20. Can we say cheating / exploitation? I wouldnt think so. Its all based on demand and teams are enjoying 3-year lock-in period!!! I would not be surprised if one pays more to Virat than Dravid in next auction.

    Vinay Alase
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    If we get mental peace after giving something then its not cheating, but if we get mental tension even after giving its cheating.

    For Ex: I pay for Blind children school when they ask for some help. I feel happy and proud for giving..

    But if the money is not used for right purpose then i feel cheated. So i take things like this. :)

    Ratty's geniekids
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    What I take / pay BY CHOICE is FINE and what is FORCED / done surreptitiously is cheating. When i pay 500 for astrology or pay extra for a brand - i am doing it on my own will - how i can i say - i am exploited. But when I am promised X but i am given X-Y then i am cheated.
    I think , hence in terms of education we need to EMPOWER children to
    1) Take sound decisions
    2) Fight when they are cheated

    Prakash Gudnavar
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    Ratnesh,
    Wow! It is not cheating (1) as a consumer, if it is my decision/choice (2) as provider, if I deliver what I promise. That gives me an empowering context.

    Pramod,
    Oh! Yeah! It is business and the provider dictates the terms, and consumer has choice to accept or not.

    Vinay,
    As mentioned in other comment, its on our part to do the home work and make sound decisions.

    ReplyDelete
  2. Guddu - nice article

    ReplyDelete