Job creation should always be a byproduct of need based development of industry. JOB CREATION for the heck of JOB CREATION ( like the congress government did ) is like siphoning your tax money and distributing to a bunch of people for their votes.
EVery one has seen what a disaster roajgar yojna is.
Slow and organic growth of economy ( like CHina or Gernany ) is more sustainable than artificially inflating the economy through rate cuts.
Job creating powered by artificial boom through rate cuts is like silicon implants of your body parts to look big. Nothing more.
Rate should be a balanced act. There are more people in this country who survive on savings than on jobs.The culture of converting them into work force should be brought about slowly and through generation.
If you cut rates, the retired people whose survival is through their lifes savings will starve.
Job creation should always be a byproduct of need based development of industry. JOB CREATION for the heck of JOB CREATION ( like the congress government did ) is like siphoning your tax money and distributing to a bunch of people for their votes.
EVery one has seen what a disaster roajgar yojna is.
Slow and organic growth of economy ( like CHina or Gernany ) is more sustainable than artificially inflating the economy through rate cuts.
Job creating powered by artificial boom through rate cuts is like silicon implants of your body parts to look big. Nothing more.
Rate should be a balanced act. There are more people in this country who survive on savings than on jobs.The culture of converting them into work force should be brought about slowly and through generation.
If you cut rates, the retired people whose survival is through their lifes savings will starve.
Re: CREATING JOBS is the worst thing one can do to economy
by Logan D on Nov 14, 2017 08:07 PM
Corporates want rate cuts, more crate cuts , more and more rate cuts.
The damage caused by rate cuts outweighs the benefits by 100 to 1.
Housing :
Successive rate cuts means builders can loan money at cheap rates and build over priced apartments on government lands. The inflated property price naturally suck up your hard work and hard earned money
Secondly, if you are a land owner, you do not want to work hard like your fore fathers any more in the fields producing food. You sell the land to real estate and kill the golden goose once and for all. Burning example to this phenomenon is the state of Andhra Pradesh state - once considered granary of INdia , now imports rice and vegetables from Gujarat and Tamilnadu. Why ? They destroyed the gold like arable land - several lacs hectares and converted into concrete, steel and sickness.
Rate cuts are like reservations of in India. Easy to enforce without any cost but pay dearly later.
Cutting rate is like the devil teasing you wearing lingerie. You take loan and buy a property or buy an automobile is like you live your life on some one else's money. You take loan for 10 lacs and pay 20 lacs. So the result of your hard work which earned you that promotion and rise in your salary will go into the inflated price of property you purchased and help increasing the pollution of the city with the automobile you purchased with loaned money.
Why can't government encourage people put money into agriculture because we need more food.
Why are we buying vegetables at 50 rupees a kilo today ? Is it not because of this false sense of development ?
If rate is ct by 200 points, people of India will eat from the garbage bins as the will not be able to afford food any more. The economy will go to dogs and will be like Argentina in 2003/4. There will be civil war. The debt bubble will inflate like Gini and and food prices will shoot up to the roof ( remember 1930 USA ?).
The defaulters on housing loans ( as a result of successive rate cuts in the past ) are the reason why many banks are in red today. So called HOUSING BOOM is the principle culprit of BLACK MONEY , INFLATED PRICES and INFLATION of food prices. Real estate is mother of all devils as far as economics of this country is concerned.
The automobile sales ? Are you insane ? We should actually take steps to cut down on automobiles. Haven't we learned any thing from Delhi smog recently ?
We should actually do the opposite by encouraging people to save more money in banks so that banks can come out of red.
If rate is ct by 200 points, people of India will eat from the garbage bins as the will not be able to afford food any more. The economy will go to dogs and will be like Argentina in 2003/4. There will be civil war. The debt bubble will inflate like Gini and and food prices will shoot up to the roof ( remember 1930 USA ?).
The defaulters on housing loans ( as a result of successive rate cuts in the past ) are the reason why many banks are in red today. So called HOUSING BOOM is the principle culprit of BLACK MONEY , INFLATED PRICES and INFLATION of food prices. Real estate is mother of all devils as far as economics of this country is concerned.
The automobile sales ? Are you insane ? We should actually take steps to cut down on automobiles. Haven't we learned any thing from Delhi smog recently ?
We should actually do the opposite by encouraging people to save more money in banks so that banks can come out of red.
To make SMEs perform better, Govt should come out with rules proportionate to the size of the business. Barring some essential rules ( like for example FSSI no for food item) SMEs must be exempted from all other rules and approvals that applies for big businesses. Then SMEs will flourish and that is what is needed in India, instead of following same rules and approvals for small or big business. We need not copy the western model for everything and it is high time we start thing on our own..
iIF INTEREST RATES GETS REDUCED FURTHER THEN THE INCOME OF MILLIONS WHO HAVE TOILED HARD IN THE PVT. SECTOR(EXCEPT LARGE CORPORATES), FOR MANY YEARS. AND ALSO WANT TO LEAD A SIMPLE RETIRED LIFE WILL HAVE TO GO HUNGRY WITHOUT ATLEST ONE TIME MEAL AS HIS INTEREST INCOME WILL GET REDUCED FROM HIS DEPOSITS OF LIFE TIME SAVINGS. AND ALSO WITH THE DAY BY DAY INCRESING COST OF MEDICINES , HE WILL HAVE TO STAY AWAY FROM HOSPITALS AND ACCEPT DEATH AS THE ONLY FINAL ACTION OF HIS LIFE AND THUS SACRIFICING HIS LIFE FOR FEW LAKHS WHO WANT TO LEAD A EASY LIFE, ESPECIALLY THE WHITE ELEPHANT GOVT. PENSIONERS WHO ARE AUTOMATICALLY GETTING HIGHER PENSION EACH YEAR OF INFLATION AND DA RAISE BASIS WHICH IS VERY BAISED AND CRUEL TOWARDS THE CRORES OF PVT. SECTOR OR LOW SELF EMPLOYED PEOPLE. aT LEAST THE SR. CITIZEN INTEREST SHOULD BE HIGHER BY 3% THAN NORMAL BANKS f.d INTEREST SO THAT THE PVT SECTOR SR. CIZIZENS CAN GET SOME RELIEF.
Re: WHY NOBODY IS ASKING THE RBI
by RAJ on Nov 14, 2017 03:51 PM
I agree with you , if you look at Balance sheet of top 5 borrowers in India , they have gained almost 4000-5000 crores pa just by reduction in lending rates to them by banks. Yes at the cost of those persons who have given FDs to the Banks.I also agree withnyour suggestions. Jai Hind
