Showing posts with label Storytelling. Show all posts
Showing posts with label Storytelling. Show all posts

Subsidies and its Impact on the Economy



It all started with the government trying to win the votes of the farmers and promised them subsidies and write-off on their loans from the banks.  This led to huge amounts of money being written off as bad loans and the money accumulated to such enormous amounts that most government banks had their market share and shares go below their actual value due to the debt that they incurred.

When any company or even anybody that has more debt than they are generating income, for the next succeeding years it is always hard for them to balance their balance sheets.  The thing is you’re trying to match the positives and the negatives of balance sheet.  You can technically write this off, but on the actual books, you are in the red.  Once you are in the red, it now becomes the race to equal it off or come back into the black or positive side of the balance sheet.

Suppose I have a book that is worth 10, but I’m giving it to you for 8.  If my manufacturing or production cost is less than 8, then whatever I’m making will be gross profit and after forgoing my costs and other expenses it will be my net income/profit.  Until the cost that I’m providing it to you does not go below my manufacturing or production cost, I will still make a profit but at a lower amount.

Impact of Fiscal Deficit, Current Account Deficit on Indian economy



The main thing is that both fiscal deficit and current account deficit are differences between income/revenue and expenditure.

Fiscal deficit is the difference between the government’s total expenditures and its revenues (excluding money from borrowings).

Current account deficit is the difference between the revenue earned by a country from its trade activities and its expenditure due to imports.

Now that we’ve got the definitions out of the way, in a sense both of them deal with either the positives of the negatives (in terms of income/expenditure) that the country has.  In India’s case, both are in negatives or we have high deficit.  Too bluntly (or technically) put it we are in the red on the balance sheet.

There are many things that have led to this.  An open economy, imports, manufacturing practices, rules and regulations, easiness of setting up a business, subsidies/favors, taxes (corporate), inflation, salaries, infusion of foreign capital and the proper use, et cetera…

When you open up an economy to the outside world, this leads to something called as innovation and brings in various methods and ways to circumvent the rules and regulations (i.e., cheating/evasion).  Any common that comes into power would like its name to be remembered forever for the good things it does, and along the way it tries to do things with a different approach.

Now, you must wonder why after more than 60+ (65) years after independence from British rule we have not been able to become truly independent from our archaic rules and regulations that the British had setup.  We have now become a true software powerhouse and in the coming years become a truly independent manufacturing powerhouse, but with the current colonialist and dynasty type of ruling where the government that comes into power, they try to get their loved ones and relatives into prominent positions to help them later out.

This leads to the Indian economy again going down as the deficit keeps on building up and there is a negative balance which needs to attain zero or rise to the positive or plus side of the balance sheet.  Unless there is a proper overhaul of the current archaic rules and regulations and a serious and it the various amendments and or repeal of these rules and regulations the Indian economy will still be in tatters down the line.

Any government that is going to be in power needs to look at the bottom-line of the economy, proper education and providence of food and shelter to the needy, better building up of its workforce, all-round development, and a boost to the roots of the economy.


The economy is struggling because of the deficit and it is being protected due to the reason that whatever income or surplus (if at all any) is being generated by the country goes into filling up the deficit that has been created over the past 60+ years.  The situation now is that however much we are creating or producing is just not enough to fill that gap and the negativity or bad side effect is that we’re still creating more deficit year over year which still makes the deficit higher.

The government or we as the people have to look at ways to get things going in a way that the Japanese, Korean, and Chinese people have done.  If you remember correctly, after the Hiroshima bombing Japan was devastated, but with hard work and determination they were able to turn themselves around and are now the world leaders in manufacturing of various products.  The sheer volume of which they are able to maintain quality of their products at a lower rate and still beat out competitors is truly amazing.

Our country (India) needs an all-round look into how we do things on all aspects.  There are many areas where we are lacking (if you ask me, I would say in everything).  It is not just the simple things that we look to circumvent.  Our dependence on technology has risen to such a point that we are now not able to live without it.  When we buy things from a foreign country it essentially means that the money we earn is going to that country or it is flowing out of the country to simply put it.


Due to globalization and the three nations (Japanese, Korean, and Chinese) capacity to mass produce on an exceptionally high scale, our local manufacturers and producers are not able to keep up due to hindrances placed by our own elected leaders.

When we do not have inbuilt production or manufacturing, we depend on outside assistance for products.  You have to understand that for manufacturing or production there is the need for raw materials and importing that is somewhat of a good thing.  But our dependence should not be on importing the full finished product, but should be on importing only the raw materials and exporting the finished products.

When you have less income and your expenses are high that is when you get either fiscal deficit or a current account deficit and this leads to our economy going down irrespective of whatever steps we take to bring it back up.
1. Though you may not publicly own to this, at the age of 12-17 years, you were very proud of your first "Bell bottom" or your first first Apache jeans.

2. Phantom & Mandrake were your only true heroes. The brainy ones read "Competition Success Review".

3. Your "Camlin" geometry box & Natraj/Flora pencil was your prized possession.

4. The only "Holidays" you took were to go to your grandparents' or your cousins' houses.

5. Ice-cream meant only - either an orange stick, a vanilla stick – or a Choco Bar if you were better off than most.

6. You gave your neighbour’s phone number to others with a ‘c/o’ written against it because you had booked yours only 7 years ago and were still waiting for your number to come.

7. Your first family car (and the only one) was a Fiat or an Ambassador. This often had to be pushed by the entire family to get going.

8. The glass windows in the back seats used to get stuck at the two-thirds down level and used to irk the shit out of you! The window went down only if your puny arm could manage the tacky rotary handle to pull it down. Locking the door was easy. You just whacked the other tacky, non-rotary handle downwards.

9. Your mom had stitched the weirdest lace curtains for all the windows of the car. They were tied in the middle and if your dad was the comfort-oriented kinds, you had a magnificent small fan upfront.

10. Your parents were proud owners of HMT watches. You "earned" yours after SSC exams.

11. You have been to "Jumbo Circus"; have held your breath while the pretty young thing in the glittery skirt did acrobatics, quite enjoyed the elephants hitting football, the motorcyclist vrooming in the "Maut ka Gola" and it was politically okay to laugh your guts out at dwarfs hitting each others bottoms!

12. You have at least once heard "Hawa Mahal" on the radio.

13. If you had a TV, it was normal to expect the neighborhood to gather around to watch the Chitrahaar or the Sunday movie. If you didn't have a TV, you just went to a house that did. It mattered little if you knew the owners or not.

14. Sometimes the owners of these TVs got very creative and got a bi or even a tri-colored anti-glare screen which they attached with two side clips onto their Weston TVs. That confused the hell out of you!

15. Black & White TVs weren't so bad after all because cricket was played in whites.

16. You thought your Dad rocked because you got your own (the family's; not your own own!) color TV when the Asian Games started. Everyone else got the same idea as well and ever since, no one came over to your house and you didn't go to anyone else's.

17. You dreaded the death of any political leader because of the mourning they would announce on the TV. After all how much "Shashtriya Sangeet" can a kid take? Salma Sultana also didn't smile during the mourning.

18. You knew that "Indira Gandhi" was somebody really powerful and terribly important. And that's all you needed to know.

19. The only "Gadgets" in the house were the TV, the Fridge and possibly a mixer.

20. All the gadgets had to be duly covered with a crochet covers and sometimes even with ingenious, custom-fit plastic covers.

21. Movies meant Rajesh Khanna or Amitabh Bachchan. Before the start of the movie you always had to watch the obligatory "Newsreel".

22. You thought you were so rocking, because you knew almost all the songs of Abba and Boney M.

23. Your hormones went crazy when you heard "Disco Deewane" by Naziya Hassan & Zoheb Hassan.

24. School teachers, your parents and even your neighbors could whack you and it was all okay.

25. Photograph taking was a big thing. You were lucky if your family owned a camera. A reel of 36 exposures was valuable, hence it justified the half hour preparation & "setting" & the "posing" for each picture. Therefore, you have at least one family picture where everyone is holding their breath and standing at attention!

You were really happy then...... peace of mind, no pressure no stress.
One of the most prominent revolutionaries of India, Bhagat Singh was born on September 27, 1907 in a Sikh family in the village of Banga in Layalpur district of present-day Pakistan. The third son of Sardar Kishan Singh and Vidyavati, Bhagat Singh's father and uncle were members of Ghadar party. He was greatly attracted towards socialism. Believed to be one of India's earliest Marxists, Bhagat Singh was one of the leaders and founders of the "Hindustan Socialist Republican Association (HSRA)".

Bhagat Singh was deeply saddened by the Jalianwala Bagh massacre of 1919. Though he participated in the Non-cooperation movement, he was disappointed when Gandhi called off the agitation after the Chauri Chaura incident. He studied at the National College in Lahore where he came into contact with other revolutionaries such as Bhagwati Charan, Sukhdev, and others. He fled from home to escape early marriage & became a member of the organization Naujawan Bharat Sabha.

Bhagat Singh was against individual acts of terrorism and gave a clarion call for mass mobilization. In 1928 he came into contact with another famous revolutionary Chandrasekhar Azad. The two combined to form the "Hindustan Samajvadi Prajatantra Sangha". During the Simon Commission's visit to India in February 1928, there were protests against the Simon Commission's visit to Lahore. In one of these protests, Lala Lajpat Rai was injured in a lathi-charge and later on succumbed to his injuries. To avenge Lajpat Rai's death, Bhagat Singh decided to kill the British official responsible for the killing, Deputy Inspector General Scott, but he accidently shot Assistant Superintendent Saunders instead, mistaking him for Scott.

Bhagat Singh threw a bomb in the Central Legislative Assembly on April 8, 1929 & thereafter courted arrest. Bhagat Singh, Sukh Dev and Raj Guru were awarded death sentence by a court for their subversive activities. They were hanged on March 23, 1931.

There was a rich old noble who lived in a great palace. There also lived nearby a poor man in a dilapidated hut, who subsisted on crumbs of food cast away by others. But he was ever cheerful, and never complained of his ill-luck.

Once it so happened that the poor man had nothing to eat for a long while. So he went to the rich noble for help. The old noble received him kindly and asked what for he had come. The poor man said that for days he had nothing to eat and that he would be happy if he was given some food. "Is that all!" said the noble."Come, sit down!" Then he called-out; "Boy! A very important guest has come to dine with me. Ask the chief to make ready the dinner at once, and bring some water to wash our hands."

The poor man was surprised. He had heard that the noble was a very kind man, but he did not expect such a ready welcome. He was all praise about his host. The noble at once interrupted him and said, "Don't mention it, my friend. Let us sit down for the feast." And the old noble began to rub his hands as if some water was poured on them and asked the poor man why he did not wash his hands.

The poor man found no boy or water but decided that he should do what he was told, and so he pretended to wash his hands likewise. "Now let us sit down to dinner," said the noble, and began to order various delicious dishes. But there was no trace of any food or even a single bearer.

Then the noble said to the poor man, "We have such wonderful feast before us. Enjoy yourself, my friend. You must finish all these fine dishes." And the noble pretended to eat from imaginary plates.

The poor man was faint with hunger, but kept his wits. He did not allow despair to overcome him. He also pretended to eat from the empty table. The noble now and then exclaimed, "What a delicious soup! The curry is wonderful, isn't it my friend?" The poor man replied, "Sure, sure!" "Then why not have some more," and the noble pretended to dish out some imaginary curry. Likewise, he pressed more and more imaginary dishes on the poor man and asked him if they tasted all right.

Though desperately hungry, the poor man thanked his host profusely and said that he had never eaten such a glorious feast in his life. He did not betray a sign of remorse. He kept on maintaining the face cheerfully without the least affectation, as though everything was real.

The noble was a generous person. He was a man of charitable disposition. He wanted to test whether the poor man would give way to despair. He had heard of his reputation that he never lost patience. He thought that such a contented, cheerful person as this poor man should not starve and suffer from poverty. But he had his doubts. So he himself wanted to test him. Now he found that, all that was said about him was true.

The noble then clapped his hands and a retinue of servants came in with all the delicious dishes he had been mentioning. An elaborate dinner was laid on the table. This time the poor man did not have to pretend. He now ate heartily with the noble.

After they had finished their meals, the noble said, "Friend, you are a man of infinite patience. You know well how to make best of everything and bear adversity cheerfully. You are the man I was looking for to manage one of my farms. You should live with me hereafter."  Thereupon the poor man did not have to suffer any more from poverty.

This story has several lessons for the common man to learn. When the poor man went to the rich man, he did not ask for any charity so that he might dispense with begging for some days. This shows that he was not greedy. He lived in the present. He wanted some food and he asked for only that. Now, if he had asked for some money, he would have got it, and would have spent it in a few days, only to revert back to his former poverty. He did not ask any more than what he needed immediately, and this paved the way for his good luck in being employed in the rich man's farm.

When the poor man was harassed by his host with imaginary dishes, he did not lose his patience in spite of his extreme hunger. If he had done so, he would have been asked to get out and would have lost his dinner as well as his unforeseen appointment.

He did not either complain about his ill-luck or bewail his misfortune as an ordinary beggar would have done before a rich man.

Hence the moral is that one must be patient and make the best of everything. One should learn to bear adversity cheerfully, do one's best, pray to God, and trust in His grace. One should never complain about one's misfortune.  One must learn how to master courage and build one's destiny through self-effort.

Patience is golden. Without patience life will be a total failure. One important point in this story is that when one goes to somebody for any favor, one should be prepared, to nod to his tune, if anything is to be expected from him.

Greed & the Grace of God cannot live together. Where there is greed, there good luck can hardly exist. One should learn to live in the present, & ask for nothing more than one's due.



With patience, cheerfulness, contentment and amiable disposition one should learn to make the best of the circumstances one is situated in.


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The Patient Poor Man

by on 9:40:00 AM
There was a rich old noble who lived in a great palace. There also lived nearby a poor man in a dilapidated hut, who subsisted on crumbs of...