Many learning economists are amused at 5% GDP figures shown by government.
In my opinion this is jacked up figure and in reality we are already contracting. However within a year (before 2014) we will see official figures of GDP contraction.
Brazil which has gone in the same route is paying for its sins now and it is matter of time for us.
Subbarao somehow understood this and made right noises yesterday. But it is too little too late. Subbarao can pray whatever collapse has to happen after September once he retires. But nobody can save this crazy country.
Why do you worry about GDP? There is only a small relationship between GDP and per capita income. India is the 4th largest economy in terms of GDP, but has about 125th place in per capita income.
ReplyDeleteMoreover, there is no relationship between our standards of living to the growth of GDP. . Now a days, despite earning much money, are we enjoying better standards of living than our forefathers considering the facilities like 1) Air 2) Water 3) Food 4) Own House 5) Education 6) Health? No, there is an alarming degradation in the quality of life for us even after earning more money.
What is the aim of governments?- To see that our country develops well.
ReplyDeleteWhat is the aim of people? – To get better standards of living or to earn more money.
To develop our country well, people have to work more. People work more only when they become poor. So, our government is making people poor so that they work more and our country can achieve good development. So, our government is doing its work well.
On the other hand, the aim of people is to earn more. Are they doing well? No. So, our government is doing its work well and people are not doing their work well. The funny thing is that those who are not doing well are criticizing those who are doing well. How ridiculous it is?
Some times, there is a necessity to show 5% GDP growth rate also, because on this pretext, more FDI can be invited. It is a wish of many foreign corporations to enter in retail FDI in India. How can our politician deny them this opportunity?
ReplyDeleteThe heads of various departments works with their self interests like puppets in the hands of western corporations. Some foreign magazine says that Mr. Manmohan singh lost his credibility because the growth of the country is coming down as he is not proceeding with reforms in the economy. Next day, he invites foreign direct investments in retail also. This is all a drama. For those who read news papers feel that Mr. Manmohan Singh is trying hard to bring reforms to increase the momentum of growth. So, there won’t be any opposition in the public for his acts. Otherwise, without publishing any such article, if he invites FDI in retail directly, then newspapers denounce him that he is working for the foreign corporations. So, the decision to invite FDI in retail was taken first, and to suppress the anger of public they create a story and publish grandly in any magazine.
ReplyDeleteSimilarly, when the Rupee comes down to Rs: 56/- from Rs: 54/- Mr. Raghuram Rajan, the chief economic adviser to the government of India says that there is no need for panic on rupee front.
Then, Mr. Anand Sharma reveals his grand plan for increasing exports as if it is the best effort for the development of our country.
Then, Mr. Montak Singh Alhluwalia says that every effort would be taken to bring down the inflation. First of all tell me who created this inflation? They only create inflation with deficit budgets and printing of more money, but act as if they are trying their best to control it. Mahatma Gandhi said- “India lives in its villages”. The soul of Gandhi would weep for conferring Padma Vibhushan to the people like Montek Singh Ahluwalia who is silently bulldozing the lives of our villagers and the agriculture in the name of new economic agendas. (Are these awards of Padma Vibhushan given for “Best Actors”?)
Is more FDI, losing value of Rupee, or increasing exports good for our country? No, but they all create an environment in which they make all the public to believe that this is the way to develop our country.
We, the people read the news with interest and waste our time. Of course, after some time you may get some idea on how to improve the lives of people without the help of our politicians.
All the best
We have to see whether at present people are getting enough returns for their work or not. Now, a person may get a salary of Rs: 7,000/- and @ Rs: 70/- per meal, he can buy 100 meals with his present salary. About 30 years back @ 2.25 per meal, one could buy about 267 meals with their monthly salary of Rs: 600/-. Previously, only the man in a family used to work and able to sustain the family. Our parents could bring up 3 to 4 children even with some difficulty. But now a days, even if both man and woman in a family work, they could not meet their both ends. At present, in western countries, most of the young adults are poorer than their parents. India is also following the footsteps of America. So, you have to understand what the meaning of development is.
ReplyDeleteIt is very sad and deplorable on the part of our well educated, to think that every thing will be managed by the experts at the Reserve Bank. Actually, the experts at the Reserve Bank are also pawns in the robbing culture of this society. They have their own limitations. Our ministers flare up if there is any decrease in the budget of their department. They get hysteria and only cool down when budgets becomes normal. Our politicians go on increasing the budgets of government, to get a bigger share and rub their targets on the officials of RBI. That means, the experts at the Reserve Bank have to work according to the fancies of our politicians. The work done by the experts is to advise our politicians on the effects of more currency printing. They have to advise the politicians on the possibilities of increase of prices at different levels of printing. The decision on the quantity of printing of the currency is in the hands of our politicians only. If we put 50 kgs of weight on a donkey, it can bear it, but if we put 300 kgs on it, what happens? The donkey drops everything on the ground. Like wise, the experts at the reserve Bank give advice to our politicians on how much a common man can bear the price rise like a donkey. The theme is that a common man should not die at once with the price increases; but has to pull his life cart like a donkey only. To increase his income, he has to go on working more and more in order to maintain his standard of living.
ReplyDeleteAs explained in my earlier comment, the standard of living for 90% people is decreasing and at the same time it is increasing for the remaining 10%. This was explained on how the present real income of common people is decreasing. At the height of good growth also the incomes of middle class and poor decreased. So, there is no need to discuss about the growth figures of our GDP.
ReplyDeleteYour blog revealed the realities of robberies of our politicians. But there is no use in writing these realities because our politicians won't listen to us and change their ways. Of course, you can continue this blog to spread awareness of misdeeds of our politicians and to make a group. It is most important to find a solution to our problems.
In this context, I prepared a plan on how a common person without any investment can earn Rs: 80,000/- per month and also the best standards of living. Then we can just ignore the the robberies of our politicians. If we go on listening to the bad stories about our politicians, it would only increase pain and anger for us which in turn spoil our health. If anybody is interested please send your email address so that I can send my plan. Contact: sreekrishna2011@hotmail.com