What really our needs are?
Dr. Raghuram Rajan, RBI governor, recently tried to warn the global economies of the looming Great Depression. He was and is right in his assessment, though, may be because of the internal pressures he had to clarify that he didn’t mean that. Anyway, the facts are so obvious; one needn’t any economist to tell us where we are headed at!
The facts of our economy are that the priorities of the producers and consumers as well of lenders are far from realities. We still are to understand what our priority needs are. Most of the investments go in the areas those are manufacturing artificial priorities to create artificial demand and thus building an artificial economy, ceaselessly. Rather we are tirelessly walking towards economic anarchy. Greece is an example. The fact is every nation is busy in managing internal equilibrium artificially. Sometimes they do not bother even to project fake GDP’s and thus progress. Manipulated figures of recent Indian GDP are no exception. Everybody knows that most of the companies, including agriculture are showing negative growth…then how come that the GDP figures are rising?
The investment is a major resource for every economy. If Indian economy has survived recession it is because of the average monsoon, not because of the manufacturing segment. Agriculture has always been backbone of Indian economy. However we find that the investment in agriculture is gradually declining to alarming level whereas it is increasing in the segments that has done not too good to the Indian economy. Rather NPA’s in such segments are now has risen to threatening levels to harm health of the banking segment too.
No one can deny the fact that the technologies need to be developed to introduce newer products to make human life better. But wrapping olden technologies in attractive (?) packages to create artificial demands, sometimes applying unethical practices, such as happened about Maggy case in India, is certainly not the way of healthy economical progress. The supplies have gone up to enormous levels and they need buyers. They need to convert potential buyers to consumers so they offer easy loans. Loan has also become a product today that is sold amongst the consumers without giving due thought to the ability of the consumer to consume. This is outrageous situation we have fallen into.
The recent report on Indian economy is far more alarming. At one side housing prices have gone up, artificially, thanks to land mafias and corrupt Municipal authorities and politicians , beyond reach of so-called white-collar-job people in the cities, Rangarajan Committee tells us that 48.52% of Indian homes lack in basic amenities. They are just single room huts. 51% people still depend on farm labor. Unluckily, all these unfortunate people belong to the SC/ST categories. Indian budget never have adequately allocated funds enough to make them able to stand up in competitive age. At one side these classes are shown constantly the mesmerizing dreams of happy and luxurious life via TV serials and advertisements, the means they have at hand are so meager they have become a frustrated society, having no hope left for better tomorrow. Social psychology has enough reasons to have volcanic eruptions sooner or later.
The problem is with our economy. IT is not sustainable anymore. It is demand-creation based…it is not demand based.
The way dictators force their thoughts on the people they want to rule, similar way the corporate enforce their thoughts on the people of human life, how it is going to be with their products. Actually human life could have been, rather it had been, better when these products were non-existent. Our government is not for the human being to uplift their life but to encourage fulfill unquenching thirst of the corporate. Our investment in agriculture is declining, though Indian economy, if at all has been sustained, because of it. The prediction of weak monsoon even now can tumble the stock markets. A smallest country like Greece can throw a wave of tremor on global economy, then we must think where our economy is leading to and whether it really is realistic.
The credit agencies have lost their credibility. The government figures of GDP have become meaningless. We are living in an artificial figures and thus economy which has no sound basis. As far India is concerned, about 50% people are losing their buying capacity day after day for lack of new investment in the field, such as agriculture, they are working in. These facts are overlooked by the economists.
The bubble of the artificially escalated economy has started to burst in form of the Greece. Tax evasion and corruption are easy answers to blame for such problems, as are being given in case of the Greece. But it now is universal fact. India could be the major example. Main problem lies with the artificialness of our economic activities and our thoughts of the life. We have mechanized enough our minds, thanks to the media, to forget what really our needs are and this is where we need to think on.
Great Recession is not far away. Actually it is knocking on our doors and we still are deaf enough to not give any heed to it. The fact remains that every national economy is bogus, giving false statistics and stimulus hopes for better tomorrow…that is far away!