The stock market is a complex breathing living mechanism it decides the fate of a nation and its people living it. For a layman the logic is simple you buy at a low cost and sell at a high cost. The investment happens in a company who is producing a product and your fate gets tied to that company. If they are making money invariably you make money.The fact that a lot of people are making money means that the country these people live in is making money.
That is when our GDP which counts how much stuff we are producing with how much stuff is pretty good. Nobody talks about sale, I guess we just assume that if we are producing we are selling and even if we are selling to who exactly doesn't matter. If most of what we make is sold out of our country then how can we deduce that a majority of our country is earning enough when they are not buying.
The new government is brandishing a good report card with a 5.5 percent GDP that means we are doing good and the fact that the oil prices are falling and commodity prices are tagging along is painting a very good picture in the press.
Per Capita is the money that a average Indian earns currently it is 5729 ! And the average Indian is mostly male who supports a family of at least four !
Every day India loses 2000 farmers every day, 12 farmers die everyday and I am not going to get into the malnourished numbers.
Education, Sanitation, Electricity basic needs which lay barren in a growing India. Markets are making money and we are supposed to be happy, poetry, art , literature are bowing down to numbers, there is no value for quality rather there is no money for it.
The equation between the stock market and the health of a nation is difficult for me to understand.
Then again for a literature graduate who is not fond of the multiplication table equations are difficult to understand .
Anybody is welcome to provide a explanation will post it for all to read and understand !
That is when our GDP which counts how much stuff we are producing with how much stuff is pretty good. Nobody talks about sale, I guess we just assume that if we are producing we are selling and even if we are selling to who exactly doesn't matter. If most of what we make is sold out of our country then how can we deduce that a majority of our country is earning enough when they are not buying.
The new government is brandishing a good report card with a 5.5 percent GDP that means we are doing good and the fact that the oil prices are falling and commodity prices are tagging along is painting a very good picture in the press.
Per Capita is the money that a average Indian earns currently it is 5729 ! And the average Indian is mostly male who supports a family of at least four !
Every day India loses 2000 farmers every day, 12 farmers die everyday and I am not going to get into the malnourished numbers.
Education, Sanitation, Electricity basic needs which lay barren in a growing India. Markets are making money and we are supposed to be happy, poetry, art , literature are bowing down to numbers, there is no value for quality rather there is no money for it.
The equation between the stock market and the health of a nation is difficult for me to understand.
Then again for a literature graduate who is not fond of the multiplication table equations are difficult to understand .
Anybody is welcome to provide a explanation will post it for all to read and understand !
1 comment:
While I agree with the fundamental premise of your article that government's role is to provide public services such as power, water, roads, affordable housing to name a few this will require a lot of collaboration between state and the central government. Also India has number of age old laws that need reform this will improve the climate for big businesses to invest which will create more jobs for the common man. However in order to do that the government has to strike peace with the opposition. The government has resorted to obstructionism as a strategy to stall the previous government's progress whatever little was being made and now they are being paid back with the same coin. What this means is that we are paying our government 1000s of crores in both direct and indirect taxes for these guys to literally sit in the coffee shop. So unless this stops major reforms cannot happen and the economy will not recover. The GDP per capita will take a few decades of sustained growth to bring it anywhere close to global standards this will require stable-honest governments both at the centre and state and a lot of foreign investments. Finally capital markets is at best a broad indicator of industry but less than 10% of India invest in capital markets and therefore yes means very little to the common man.
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