Is Economics an Optional Subject for our Government?

 

16^th September 2020

Is Economics an Optional Subject for our Government?

Dear Fellow Travelers,

Namaste! Today’s Economic Times carried a meaningful cartoon by R Prasad. The same is given below. An executive is telling the boss that – “We can improve only the corporate pages, Sir. As for the economy pages, God has His own designs.”

This is the beauty of a good cartoonist. He can sum up in one sentence what we need pages.

When I look at the track record of Government – we see fantastic networking in the world / we see a lot of talks about India as a great destination for doing business / changed the face of India / Vocal for Local / Direct Fund transfer to poor/strong military and you name it – there are tons of good things have happened since 2014.

Economy as Optional Subject: -

My grandfather has given me superb advice and I remember it each time when I get motivation or an urge to go mad on shopping – “You are Hazam (barber) and not Nizam. Don’t try to show others what you are not.” Nizam can keep diamond on his shoes. I can’t copy him. If at all I copy him with borrowed money – (which many of my friends have done) – I will suffer a lot with the tension to payback my loan installments.

Narayan Murthy was the first to recommend to open up the LOCKDOWN as we can’t afford it as a POOR country. He was trolled. I also wrote a letter to MODIJI with my suggestions. I did get a reply but actions were not taken.

The common link from all the events starting from Notebandi to Lockdown is giving me a feeling that the ECONOMY was treated as an Optional subject.

Only Supply Side Push: -

Some of the major steps taken in the last 6 months – they are giving various loans/moratorium period / direct money transfer to farmers and others / various schemes for small and medium entrepreneurs / special schemes for women / reducing stamp duty / reducing GST rates in some items and things like that.

When you hear this or read this you feel Government is carrying for us. Isn’t it?

Dis-ease of doing business in India: -

They are talking about the EASE of doing business in India. The genuine guys who take the above loans have a lot of difficulties to do the business due to various impractical laws. Moreover, some bigger players are selling goods ONLINE and they are minting money. But small guys have no market to sell. He has to follow a lot of procedures which he can’t afford without proper manpower. Being a small shop – he can’t afford a big salary guys.

Let me share an example of Share Market. SEBI has come out with laws and volume is down by 50% or more. If you read the laws – they are making it difficult to make money for small investors. At the same time – BIG guys are trading and minting money.

Big guys are making single IPO applications for Rs.200 Crs to Rs.500Crs. Issues are getting oversubscribed 200 times. It means small guys don’t get the allotments. None of my clients who applied for Rs.2 lakhs to Rs.25 lakhs of Happiest Mind IPO got allotments. It means all the money went to BIG guys only. Small investors have to take a lot of pains while trading / depend only on LUCK in IPO. Can you call it the EASE of doing business?

It seems in order to show our GDP is moving up fast – the government is pushing BIG guys at the cost of small guys. Another nonsense is they are settling big outstanding loans at 10% of the total loan while small guys are asked to sell their house to pay up the loan. The same way YES bank was saved and other two small banks were allowed to close down in recent months.

Where this will lead to?

This is Mass Mismanagement of Economy. The economy is like an Echo. The way echo multiplies your sound, small mismanagement in the economy will lead to bigger pain for the times to come.

Let October starts and we all will see the results of mismanagement in terms of various negative events. You must read my post on RAHU transit in Vrishabh Rashi wrote in July / Shani transit in Makar Rashi written in January 2020 / Guru transit in Dhanu Rashi written in September 2019. If you read them – you can connect the dots for the coming times.

If you think you have no time to read and understand – you can take our services to smoothen your journey in the coming period.

What Now?

History shows that a strong Military was always sustained with a strong Economy only. We have seen what happened to PAKISTAN who focused only on the Military.

If you also want to sustain your Standard of Living in the coming time, learn investments, generate passive income along with your regular income. If you like our idea – approach us.

This is one of the best HINT, I am sharing with the smart reader.  

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Live With Passion…Invest With Passion.

Hitesh Parikh.