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Sreekrishna Koppuravuri , I am an economist. Nov, 08 2016

People should not depend on governments for growth


Why should people depend on governments for growth?

People are desperately depending on governments for growth. So, development became an agenda in elections. Every government is trying to boast themselves as champions of development. Governments are creating fictitious figures to show high growth rates. But, understand that earning capacity of common person decreased in Capitalism. Let us compare the earning capacity of a common man in this aspect. About 25 years back, the salary of a fresh graduate was Rs: 600/- per month and price of a meal was Rs: 2.25. It means that one could buy 267 meals with that salary. Nowadays, we can take Rs: 8,000/- as an average salary for a fresh graduate and the price of a meal is Rs: 80/-. It means that one can buy 100 meals with this salary. Then, whose purchasing capacity is more? Actually, the standard of living of an average Indian has come down by about 2.7 times from the last 25 years. Previously, even if one man in a family earns money, they could bring up about 3 – 4 children. But, it is very difficult to bring up one child nowadays even if both parents work hard in their jobs. It is enough proof that our standards of living have come down. So, we should not depend on growth rates of governments

Why should people depend on governments for growth?People are desperately depending on governments for growth. So, development became an agenda in elections. Every government is trying to boast themselves as champions of development. Governments are creating fictitious figures to show high growth rates. But, understand that earning capacity of common person decreased in Capitalism. Let us compare the earning capacity of a common man in this aspect. About 25 years back, the salary of a fresh graduate was Rs: 600/- per month and price of a meal was Rs: 2.25. It means that one could buy 267 meals with that salary. Nowadays, we can take Rs: 8,000/- as an average salary for a fresh graduate and the price of a meal is Rs: 80/-. It means that one can buy 100 meals with this salary. Then, whose purchasing capacity is more? Actually, the standard of living of an average Indian has come down by about 2.7 times from the last 25 years. Previously, even if one man in a family earns money, they could bring up about 3 – 4 children. But, it is very difficult to bring up one child nowadays even if both parents work hard in their jobs. It is enough proof that our standards of living have come down. So, we should not depend on growth rates of governments

Rohit pande , Have a view on many things but happy to thras Nov, 08 2016


In fact contrary to the sentiment of this thread, a large part of the current economic engine of India is being fueled by the government spend. Private investments and exports are at all time low and the VC binge also halted


Rajeev Gutpa , BITSian Nov, 08 2016


You have written "understand that earning capacity of common person decreased in Capitalism." Can you elaborate on that in a general sense? Also, if not capitalism, what system would you recommend?


Vikram Gupta , Exploring, learning, believing Nov, 08 2016


Sreekrishna Koppuravuri you are correct in pointing out the decline in purchasing power of an average Indian, something which takes into account inflation as well. However, the reasoning behind this fact is something I don't agree with. The main reason for this trend is the excessive westernization in our culture. In our attempts to mimic the west, we spend on things an average Indian would never have done 30 years back. To realign the mass ideology, we probably do need the government. Not for development per se, but for the general meaning of development.
Sreekrishna Koppuravuri you are correct in pointing out the decline in purchasing power of an average Indian, something which takes into account inflation as well. However, the reasoning behind this fact is something I don't agree with. The main reason for this trend is the excessive westernization


Malik , An engineer turned into a student of conflict Nov, 08 2016


Growth rate is not just a ratio measure of income/purchasing capacity. and your figure of Rs. 80 per meal is not justified. A good meal in India (home cooked) is still for Rs. 25, this gives 4 times jump to the figure of Rs. 100 and hence justifies the growth rate. I am trying to explain that this is not the right way of explaining growthrate.

Also I agree to both your points that people should not depend on govts. for growth and that govt is lying with its data.

Rohit pande something that we were discussing yesterday.
Growth rate is not just a ratio measure of income/purchasing capacity. and your figure of Rs. 80 per meal is not justified. A good meal in India (home cooked) is still for Rs. 25, this gives 4 times jump to the figure of Rs. 100 and hence justifies the growth rate. I am trying to explain that this i


Rohit pande , Have a view on many things but happy to thras Nov, 08 2016


Indeed, it is. Governments not only eat a lions share of taxes between their inefficiency and greed, but also miss the complex linkages between the social and physical infrastructure and the evolving future. On top of it ( or rather because of it ), they obfuscate measurement through hyperbole and emotion. But where I do not agree is that change can happen independent of government and political reform. Pilots / proof of concept surely, but no scaling.
Indeed, it is. Governments not only eat a lions share of taxes between their inefficiency and greed, but also miss the complex linkages between the social and physical infrastructure and the evolving future. On top of it ( or rather because of it ), they obfuscate measurement through hyperbole and e


Malik , An engineer turned into a student of conflict Nov, 08 2016


Totally agree with your last statement. It has to be either via govt or via huge capital influx which in turn takes care of the govt.