Thursday, May 7, 2009
stick it to the man - part 1 - getting a move on
for those wondering what this story is gonna be about...a minor correction to their line of thought...this is a political commentary...but u can read it like a story...after all...we are a democrazy aren't we :P
So todays diatribe on the handling of the recession by the government and how we should get a move on and get out of this situation.
But first a few basic lessons in economics for the un-initiated. If I print a Rs 100 note and u do some work for me for that amount, that money passes on to u...u spend that money buying apples, ordering some garden work etc etc and that same money passes on to those people who in turn spend that money forward. This is called the multiplier effect.
What happens in a recession is that someone stopped spending (for whatever reason) and the multiplier effect works the opposite way reducing everybody's spending power and the cycle goes on.
Hence in such times when people are shy of spending, it falls to the government to spend and put money into the market. It needs to spend. The last boom was in a great deal spurned by the govt spending massively on the golden quadrilateral project.
Now look why our governments hands are tied. It spent 60k crore on waving of farm loans, it spent another huge chunk of money on NREGS and it'll be spending more money on tax sops further on. I won't just as of now comment on the merits/de-merits of these spendings
just that other than the NREGS none of them have even a remote chance at helping anybody get out of recession.
So what would I have done if I were in the hot seat.
(stolen all the money and gone to the carribeans :P )
I would have spent my money on two key things
1. Greening the industries
2. Development of sports as an industry
When we were growing at 9% nobody had time to think about how to do things in a better, cleaner way. Now would be the time to say...hey we are destroying the earth the way we are going...lets see how we can reduce the damage, lets spend on green energy. Millions of dollars would need to be spent on this over many years. Technology would need to be brought in from abroad, developed indigenously etc etc. We would achieve the dual purpose of getting money back into circulation and improving earth's sustainability
Now the second avenue for spending money. You know the tally of medals (gold or otherwise) we got in the olympics? Ok thats a rhetoric question, dont answer it please, it hurts. Other than the fact that we have absolutely hideous sports facilities for the size of the nation we are (what would you expect given that we have worse educational facilities), but what's even worse is that a 'career in sports' is not something you'd hear a parent talk about usually. There are no sports scholarships, no high school or college level leagues, dirth of playable stadiums. And that is why there is so much opportunity in sports as an industry we haven't even begun to tap into it yet.
So as MGM says when one episode ends...That's all Folks :)
p.s. don't go by the date on the pic...that's only cause i didnt set the camera settings before shooting