Current Recession - My View

Hi Dear Indians,

When all the world is talking about current recession and policymakers of all countries are trying to everything to overcome from this situation, i am thinking different about it.

From the point of economics, Recession is a period in which, producers have insufficient consumers for buying their products, at this selling point they unable to get revenue for covering their cost. For some producers it arrives them at shut-down point.

Above is for the understanding the term "Recession". We know that following decisions are taken in economics like What to produce, How to produce, For Whom to produce, but i think we ignore one decision i.e. "In what quantity & Quality to produce?". This ignorance is the reason for recession.

The only motive for a capitalist economy is to earn profit. But Corporates have goal to maximise his profit. Can any body tell me what is the limit of maximum? Off course " Sky is the limit". So what if a country have 100 people, then a Car seller Corporator would try to sell car to all 100 people after that they trying to convince people for taking another car for maximising his profit. But limit is the limit and so now he has no consumers for selling his cars. Now the country is going for recession.

I am giving you example of two economies, Japan & America. In Japan Recession period had came one and half decade before. They overcome it. The big Q is reason of recession and how they overcome?

Japan is a non materialistic country so their people didn't go for endless buying like American. So After a time Japanese economy got staturion point and got recession period. For overcoming this situation they went to western market and got success.

Now the turn is Western country and almost all develop economies. First bankers lend loan to creditworthy person but after a time for maximising profit they were starting to giving loan to people having less credit. Due to the blindness buying habit western economies have survived a lot. But we know for everything limit is limit. Due to this Banking policy of a Capitalist economy more people made defaulter and now we see the result. Banking system collapsed and everywhere we see the recession because due to the globalisation.

So what are the option. There is no option. Recession is a fact and no types of economy can avoid it. For overcoming recession western follow the Japanese. They come together in developing nation like India because this country have more than 100 Crore people. So they see a lot of potential consumers. Although it is good for India because now our turn is coming to eating fruits of time.

Oh! I am looking many smiling people. But I am not not happy because its not a way of life. You are destroying environment for the sake of growth. Public, government and all thing is now in the hand of market. I know a lot of people says, "there is no option.".

I am disagree with them because in our culture there is a mantra for changing whole economy and i.e. " SANTOSHAM PARAM SUKHAM". Why do we need lot of car, AC, other luxurious goods and facility like staying in five star hotel e.t.c. Normally we buy and avail these goods and facility for showing our social status. If we have money then we must spent and it in social or creative area. If we change our buying habits then only good things are produced and so there is lot of saving of limit resources.

I know, ............. I know what will you ask? You would arise question of employment. I have a way. We must avoid machines that cuts hand. Oh! you shocked. Please first take a glass of water.

Why do we buy machine. Normally for maximising profits. So first we change the goal. Our goal should be "using the resources in most efficient way". If a machine is helpful in this purpose then take it otherwise not.

Another thing I want that when we calculate GDP(a measurement of economic growth), then you must less them by Environment cost. If you do this in present situation you find that most economies have negative GDP.


Oh! You need a break. I also.............................

So think it

Dare to change your attitude always you find a solution.

Good night!