Sunday, 17 May 2020

Economic package

Recently economic package of 20 lacs crore were announced. We were expecting charity/donation ....Hence many people disappointed that they did not get any cash.
Govt collects taxes for high quality governance. I feel that aprogressive government should never gives money to citizens. Instead make them self sufficient to make money on their own.
Money has been given in form of loan, subsidy, policy reforms which will directly indirectly benefit all the people.
What is required is that business flourishes and jobs are created.
Further It depends on people to work fruitfully and provide world class goods and service.
More the quality work services and it's supply ...More is the prosperity for the society.

In economics everything is circular and not linear
Every economic action or policy affects each other. Intent of the policy maker and their will decides how the society is shaped.

Demand side will improve once people start working and get money in return for their goods or service
Govt has started giving work. Encouraging private sector also to expand
FDI provision also relaxed to bring foreign capital and expertise

COVID is extraordinary times. 2 months of lockdown....People were given free food in hunger shelters...Free rations distributed...Needy people..Cash credited in their accounts.....
I feel the economic package is more about reviving the economy so that prosperity can return for all

Giving cash is a dead expense
Giving loan means using the same money over and over again
Also it encourages people to perform 
If people perform then only the quality of life of a society can improve

Demand will be generated with loans....People will take loan money and buy product and services for providing further product t and services

It's circular and keep on rotating...The loan money will keep on circulating and keep on adding to GDP and prosperity

The faster it moves the faster will be growth

We should be careful about environment also.....In our greed we should not forget nature

We should maintain the balance






No comments:

Post a Comment