Economics and AAP

I'm not a scholar in economics, but found the points quoted below to be quite true.
Read this answer on quora, http://www.quora.com/Aam-Aadmi-Party/Is-the-AAP-anti-business and unfortunately the answer was collapsed. I don't know who the author is as the answer was posted by someone as anonymous. Nevertheless, I thought I could share it. Please point out if you find any inconsistency in the post. Also I have not edited the answer. I'm just supporting the view.

_________________________________________

When asked  about the reasons of inflation and what he will do about it, he says-  'There is only one reason of inflation, and it's corruption.Our analysis  is that all these complex theories on inflation are there to make a  fool out of us.' What amazing analysis! A grade 12 commerce student can  tell that inflation doesn't arise out of corruption. Corruption might  accentuate it, depending upon the circumstances, but the root of  inflation is never corruption. I dare Kajriwal to make an economy  growing at a decent rate inflation free. Development and inflation go  hand in hand. The complex theories are there to understand the cause,  effect and flow and to make development as equitable and as   without  inflation as possible. Does he even know that some inflation is even  necessary for an economy? I am not even talking in terms of graphs and  complex mathematics, it's almost common sense!

Then he says that  if Goa can have petrol at 55Rs per liter, why not in Delhi? I am a BJP  supporter and it will give me much glee to point this out, but the fact  is that it's not possible everywhere. Goa is able to do it because they  hope that this will increase the carriage transport going through their  state, giving them transit tax, which will in turn effectively subsidize  the petrol prices. They get the Mumbai going traffic this way. Is it  possible in Delhi? Where would the extra revenue come from, if the  government does that?

The only valid point he says there is that  if corruption is less we will save money and that can be used to  decrease prices of other commodities.That even a child knows.There is  nothing new to it.

Then there is his  stance of fixing prices  of  essential commodities by popular consensus! Do we even need to know  any economic theory to know that this is an absolutely stupid and  disastrous  idea? Sure you will fix the prices, but how will you find  the suppliers  who will supply at those prices? When no one will supply  at those prices, people will get desperate and black markets will come  into picture! Anyone with commonsense can see what that will lead to. If  the answer is to subsidize everything to keep the prices fixed, I ask  him where he will get that money from? He  wants to lower taxes, lower  prices  of everything and then thinks he  will be able to subsidize  everything  (don't tell me he is planning to  simply print more money!  We will be Zimbabwe soon then!)? And what about the rise in inflation of  other  things? When people will save money on basic commodities, they  will  spend it somewhere else or invest it. Their spending will lead to   inflation (surprise!). If they start buying (investing in) gold (which   is of course a possibility), it will lead to rise in gold prices. When   people will feel its giving better returns, they will take out money   form banks and invest in gold. With  savings rate going down and no  money  in banks, how will domestic  industry get the money to invest?  The  economy will come to a screeching  halt, increasing unemployment. I  can go on and on, but I think its  pretty clear that it will be a  disaster. This scheme can't last for 1  month!

• To cut electricity bill by 50% (i.e. 780 crore plus per month subsidized) within 7 days of forming gov
• To provide 700liters of pure drinking water per day per household within seven days of forming gov
• Free land line to every house hold by D15
• Dilli free of mosquito by D5 hence free of Dengue and Malaria and the likes
• Rupee 10 per kg of Onion by D3. 

The  AAP may signal the birth of honest politics (I believe it  does) but it  most likely signals the birth of Luddite and extremely  dishonest  economics. Until I read the AAP manifesto, I believed that it  was a  close race between Ms Sonia Gandhi and Mr Hugo Chavez of Venezuela  for  the title of Populist of the Century. In her spurt over the last  five  years, the close race is no more—Ms Gandhi is the champion. But I   believe the title should go to Mr Kejriwal as revealed by his economic   views as quoted above.