The Vault Of Souls

For the last two hours… I have been thinking of what to write next. You’ll say that I have too much free time (who spends two hours thinking?!!) But in reality it’s because I am sick and have no other work to do lying on my bed (;-)). Lately I have been reading a lot about recession and economics. (As you would have notices if you’ve read my earlier post). Recently, I read a theory about how INDIA has survived the recession. And as soon as I saw the soaring stock markets today… I felt like I had to write this. So, here goes.

The main reason why America is the worst sufferer of this recession is
the “charuvaka” philosophy the people follow (which tells people to borrow, spend and live happily ever after).This and the habit of the Americans of spending more than what was needed made the US lose most due to the recession.

INDIA is a different scenario. During the early 2000’s the economy of country was booming. Till 2006 and the first half of 2007 the per capita income of the country was increasing. As the per capita income of the country increased, so did the per capita expenditure and the per capita savings. Thus, economists thought that INDIA would go the same way as America. But when recession hit the world, the per capita income of the country fell and remarkably, the per capita expenditure fell and the per capita saving remained the same!!. This confused many economists who thought that capitalism could not survive in a society oriented country like INDIA. It was only this society only that saved our economy. The values which were passed on from generation to generation of spending only on what is required and the famous Indian phrase “ADJUST KAR LE YAAR” were the things that helped us maintain our economy. Thus, The values taught to us by our parents and grandparents, which were ignored by the greatest minds of the world and neglected by the greatest B-schools of the world, acted as a shield at the time of trouble.

Also,borrowers by and large in INDIA especially medium and small borrowers believe in repayment of loans, as rightly said by the American Ambassador Mr. Galbraith that he could see “the richness of honesty in the poverty of agriculturists”.
JAI HIND!!!