We have been aware of the fact that there are couple of races in the gracious race of human being who have been
challenged by the almighty. These are :
1. Physically Challenged
2. Mentally Challenged
We have been brave and fought like worriers to fight against these challenges. We humans, have
defied the challenged put in front of us by the almighty.
Apart from these challenges, we have created a new challenge. A challenge for ourselves, first
to realize and then to face. I call this a social challenge.
Social Challenge, is a challenge which we have created with the comfort of advancement coupled
with the social divide.
One good example is what I faced just few days before Diwali.
On a bright day morning, a bell ring from the door. As usual, pretending to be busy I waited for someone
to open the door. I was busy with my father in arranging Diwali Lights.
After 3 bells when no one opened the door I realized that I am the only one who is not so busy.
Even my 3 year son was busy in figuring out how did the wheel of his toy car broke.
So finally I decided to open the door and there I saw someone vaguely known, having a pretty smile.
He asked me "Can you please send the electrician across to our house once you are done.
We are not getting anyone due to busy festival season."
With a surprising look, I told him "We do not have the electrician. We are fixing things ourselves".
He gave me a strange look for few seconds and left.
I wanted to know the story and realized that most of the work around my locality was done by
electricians by paying heavy price.
It was then when I figured out how socially challenged is our society. Today my locality has more maids
then people living there.
I could see from my window that people were standing and monitoring what an electrician is doing and in some cases guiding him.
Yes we have better jobs to do and time to invest in more meaningful jobs, but If i have time and knowledge to
monitor what an electrician is doing then I should better do the job or I am victim of being socially challenged.
I am amazed of the fact that not only my father is able to do most of his work, but capable of doing lot more. I am scared of the fact that our generation might make a miserable old age population.
Well my intentions are not to offend anyone, I do respect everyone facet of life and believer that
everyone and everything has a role to play in the economy.
Saturday, November 6, 2010
Tuesday, October 26, 2010
Recession and Great Indian Middle Class
We are already interpolating another recession fears, when we have not been completely out of the previous yet.
We dont know whether it will happen again or not, there is a fractured opinion in the international community of economists. But we have the chance to look back and see what happened.
It is well evident that India as a nation came out of the recession in flying colors. Well, atleast thats what the world says. Following are some Real GDP growth rates for India.
2007 - 9.37
2008 - 7.35
2009 - 5.36
Now the second quarter GDP 2010 is 8.8. It has not been that bad.
So the point of the discussion is that, who let us out of this phase, RBI or the great Indian Middle Class.
First Point: Being over leveraged was the biggest problem Western World had. But did they have any choice. No..
India was not over leveraged, not by chance but by choice. We are still developing and at this stature economies cant afford to be over leveraged. The Middle Class of India still believe in savings and can afford to be over invested. Whereas western world is of the other choice. Its not their mistake but they have no choice.
Why? Because lets take a example. If you earn $20, of which you invest $10 (50% of your earning)and make $2 out of it. This makes a 20% of profit.
The next year you would have $22 and you have to grow to you would have a pressure to make more than 20% profit. We would have the pessure to invest $10(our capital) and $2(our profit) means $12, which is slightly more than 50% of our total capital i.e. $22. This is how as you keep growing you start increasing the percentage of income being invested.
Second Point: Having a big middle class population has come to our rescue not only as a work force but also as the consumer base. Our domestic consumption was high enough to handle recessionary pressures for a longer time.
Third point: The untapped, unnoticed black money. Due to sectors like automobile, reality etc. the huge amount of black money came into circulation to save from the drought of liquidity.
Fourth Point: On the back of the large Middle Class, the state owned organizations like LIC, EPFO etc. are so cash rich that they have the capability to take the country out from small hiccups. Even they bailed out the government from recent low subscribed IPOs like NMDC, NTPC.
Fifth point: The love for gold for this class. No matter how much the price of gold goes up, we tend to buy more due to the customs we have. And as we know, as of now till dollar is the pegging currency around the world, the more it weakens more the price of gold goes up. So atleast in recent times gold prices are supposed to go up till the world economy stabilizes and dollar holds up its value.
So in the end my credit goes to the Great Indian Middle Class. Hats off to them. But this cannot happen everytime. We have also started getting into the vicious loop of long term loans in reality, I dont understand why there is so much of rush as if in five years there would be no place to live on earth. We should learn and not follow West. As Chanakya famously said "You do not have time to commit all the mistakes in single life".
We dont know whether it will happen again or not, there is a fractured opinion in the international community of economists. But we have the chance to look back and see what happened.
It is well evident that India as a nation came out of the recession in flying colors. Well, atleast thats what the world says. Following are some Real GDP growth rates for India.
2007 - 9.37
2008 - 7.35
2009 - 5.36
Now the second quarter GDP 2010 is 8.8. It has not been that bad.
So the point of the discussion is that, who let us out of this phase, RBI or the great Indian Middle Class.
First Point: Being over leveraged was the biggest problem Western World had. But did they have any choice. No..
India was not over leveraged, not by chance but by choice. We are still developing and at this stature economies cant afford to be over leveraged. The Middle Class of India still believe in savings and can afford to be over invested. Whereas western world is of the other choice. Its not their mistake but they have no choice.
Why? Because lets take a example. If you earn $20, of which you invest $10 (50% of your earning)and make $2 out of it. This makes a 20% of profit.
The next year you would have $22 and you have to grow to you would have a pressure to make more than 20% profit. We would have the pessure to invest $10(our capital) and $2(our profit) means $12, which is slightly more than 50% of our total capital i.e. $22. This is how as you keep growing you start increasing the percentage of income being invested.
Second Point: Having a big middle class population has come to our rescue not only as a work force but also as the consumer base. Our domestic consumption was high enough to handle recessionary pressures for a longer time.
Third point: The untapped, unnoticed black money. Due to sectors like automobile, reality etc. the huge amount of black money came into circulation to save from the drought of liquidity.
Fourth Point: On the back of the large Middle Class, the state owned organizations like LIC, EPFO etc. are so cash rich that they have the capability to take the country out from small hiccups. Even they bailed out the government from recent low subscribed IPOs like NMDC, NTPC.
Fifth point: The love for gold for this class. No matter how much the price of gold goes up, we tend to buy more due to the customs we have. And as we know, as of now till dollar is the pegging currency around the world, the more it weakens more the price of gold goes up. So atleast in recent times gold prices are supposed to go up till the world economy stabilizes and dollar holds up its value.
So in the end my credit goes to the Great Indian Middle Class. Hats off to them. But this cannot happen everytime. We have also started getting into the vicious loop of long term loans in reality, I dont understand why there is so much of rush as if in five years there would be no place to live on earth. We should learn and not follow West. As Chanakya famously said "You do not have time to commit all the mistakes in single life".
Friday, October 22, 2010
Moving Forward to the Backward Class
This was a day of satisfaction, when we worked in the office as a true team and we resolved an important issue.
Went home and was relaxing, playing with my kid. After long time had a feeling of accomplishment and went to sleep with a smile.
The very same day, I had a very strange dream. I would not say disturbing but definately intriguing. I thought may be its worth sharing and ask the help from people you trust to understand the meaning, so I thought this may be a good place to start with.
I went to the bed and in few seconds I found myself in deep sleep. Suddenly I saw myself falling in the dark.
It was a feeling of waitlessness and did not seem to end. In the midst of the dep fall I was trying my best to pull out of it but no help.
Then suddenly i started gaining weight. I realized the fall was slowing down. But the darkness remained like the opaque space.
The darkess stared turning smokey and to the whiteness of the fog and in flash of a second I found myself out of it in a wodden cottage.
I cold see my attire has changed to that of a Brahmin. I went outside of the cottage and saw lot of people like me. It appeared to be a cool foggy morning. The streets were made of mud and some people appearing from the dense fog and the suddenly disappearing into it.
I could hear the morning temple bells and those chants of shlokas.
I was aking myself, where am I? I went inside the cottage and sat on the wooden chair, confused, amazed and before could react or do anything.....
I saw a personality appearing in front of me. He was weraing a saffron Dhoti and the Holy thread (Janeyu) across his chest. He was having a bronze tumbler in his hands. The one people in Mideval times used to keep while offering prayers.
I had a close look at right through. He was wearing a wooden sleepers. He was looking a brahmin on his way to temple. He was seriously tall, broad and had an grace on his face. He was appering extremely intellactual.
Before I could say anything, he said in his strong voice in low pitch:
He: Welcome, I thought you would come.
me: Hi! Can you tell me where I am.
He: Magadh!! (In his strong voice. Moving to a table near by to grab small pot of water).
me: And you are?!!
He: Chanakya. (Looking straigh in my eyes). Have some water and relax (Commanding).
me: (Gulping some water and trying to relate) Well....
Chanakya: Dont worry. You would be back in some time. I was told someone would come to take my acessment of your times. Sit and listen. I have lot more job to be done.
......(Taking a breath and grabbing a seat). Well I am glad after a long time things are going good. Do you understand the system here?
me: Well somewhat. I have read a little.
Chanakya: So you dont. Knowledge is never little. You either know it or you dont.
me: Yes I am not aware.
Chanakya: In short. We have a caste system prevalent here which I dont believe in. I am a believer of the old class system where we used to have the Brahmin, Kshatriya, Vaishya and Shudra.
me: Ya, I know (Trying to stand in front of him to have a two sided conversation)...
Chanakya: No, You dont.
Chanakya: I am glad that the era you live in is moving towards a class system.
me: Ya, the modern era//
Chanakya: You can think its modern, I dont. There isnt anything modern.
..... Brahmins are supposed to be the with knowledge. Devoted to research and anything to do with "Vidya". I can see you have a class of learned people who are devoted to research and finding new things and theories in field of science, art, commerce, medicine. I would call them true Brahmins.
..... Kshatriyas are supposed to be the fighters and owners of fighting skills. There are huge armies and policing around your place doing the true job of a kshatriyas.
..... Vaishyas are the business community. You have big and great buisiness houses, doing great and creating huge job opportunities. They are also generating great wealth for the nation.
me: Yes! you are right.
Chanakya: (Looking at me with not so good respect) Well I am not going to explain Shudra. (Looking outside the window) For me who does not fall in above categories, falls here.
So (looking in my eyes), can you tell me whats your class.....
................
................
.....
And my mother woke me up.
I was feeling happy that the one sided drilling by a personality like Chanakya ended.
But what really remains a question is "What class are we?".
Went home and was relaxing, playing with my kid. After long time had a feeling of accomplishment and went to sleep with a smile.
The very same day, I had a very strange dream. I would not say disturbing but definately intriguing. I thought may be its worth sharing and ask the help from people you trust to understand the meaning, so I thought this may be a good place to start with.
I went to the bed and in few seconds I found myself in deep sleep. Suddenly I saw myself falling in the dark.
It was a feeling of waitlessness and did not seem to end. In the midst of the dep fall I was trying my best to pull out of it but no help.
Then suddenly i started gaining weight. I realized the fall was slowing down. But the darkness remained like the opaque space.
The darkess stared turning smokey and to the whiteness of the fog and in flash of a second I found myself out of it in a wodden cottage.
I cold see my attire has changed to that of a Brahmin. I went outside of the cottage and saw lot of people like me. It appeared to be a cool foggy morning. The streets were made of mud and some people appearing from the dense fog and the suddenly disappearing into it.
I could hear the morning temple bells and those chants of shlokas.
I was aking myself, where am I? I went inside the cottage and sat on the wooden chair, confused, amazed and before could react or do anything.....
I saw a personality appearing in front of me. He was weraing a saffron Dhoti and the Holy thread (Janeyu) across his chest. He was having a bronze tumbler in his hands. The one people in Mideval times used to keep while offering prayers.
I had a close look at right through. He was wearing a wooden sleepers. He was looking a brahmin on his way to temple. He was seriously tall, broad and had an grace on his face. He was appering extremely intellactual.
Before I could say anything, he said in his strong voice in low pitch:
He: Welcome, I thought you would come.
me: Hi! Can you tell me where I am.
He: Magadh!! (In his strong voice. Moving to a table near by to grab small pot of water).
me: And you are?!!
He: Chanakya. (Looking straigh in my eyes). Have some water and relax (Commanding).
me: (Gulping some water and trying to relate) Well....
Chanakya: Dont worry. You would be back in some time. I was told someone would come to take my acessment of your times. Sit and listen. I have lot more job to be done.
......(Taking a breath and grabbing a seat). Well I am glad after a long time things are going good. Do you understand the system here?
me: Well somewhat. I have read a little.
Chanakya: So you dont. Knowledge is never little. You either know it or you dont.
me: Yes I am not aware.
Chanakya: In short. We have a caste system prevalent here which I dont believe in. I am a believer of the old class system where we used to have the Brahmin, Kshatriya, Vaishya and Shudra.
me: Ya, I know (Trying to stand in front of him to have a two sided conversation)...
Chanakya: No, You dont.
Chanakya: I am glad that the era you live in is moving towards a class system.
me: Ya, the modern era//
Chanakya: You can think its modern, I dont. There isnt anything modern.
..... Brahmins are supposed to be the with knowledge. Devoted to research and anything to do with "Vidya". I can see you have a class of learned people who are devoted to research and finding new things and theories in field of science, art, commerce, medicine. I would call them true Brahmins.
..... Kshatriyas are supposed to be the fighters and owners of fighting skills. There are huge armies and policing around your place doing the true job of a kshatriyas.
..... Vaishyas are the business community. You have big and great buisiness houses, doing great and creating huge job opportunities. They are also generating great wealth for the nation.
me: Yes! you are right.
Chanakya: (Looking at me with not so good respect) Well I am not going to explain Shudra. (Looking outside the window) For me who does not fall in above categories, falls here.
So (looking in my eyes), can you tell me whats your class.....
................
................
.....
And my mother woke me up.
I was feeling happy that the one sided drilling by a personality like Chanakya ended.
But what really remains a question is "What class are we?".
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