Sunday, November 20, 2016

It was the spring of hope, it was the winter of despair

It was the best of times, it was the worst of times” so begins the legendary novel "A Tale of Two Cities". India too is at the same point.

We have Banks flushed with liquidity but the queues are long at ATM’s to withdraw a tiny amount of that cash ocean.

Experts are saying real estate prices will come down but if it that happens, construction sector will take a hit and many daily wage labors go jobless. They do not have skills to do other jobs. While many dream of buying a new home as they become affordable, those who build it are in despair.

Interest rates will be lower and you say happier times? But wait, GDP growth will come down too and that is not good news. "This is war on corruption" says those in power. But the opposition parties are asking "What prevents the corrupt asking for Rs.100 bills or Gold instead?" Is this time to smile or sigh?

Let us punish the black money hoarders, says the PM. But the poor are helping to convert the black money into white for a commission. Who is really corrupt? India is a land of contradictions. Always, in the past, now and in the future too. Is that our pride or enemy?

The more we clean more the debris piles up. The root of this evil is in higher population competing for limited resources. We, Indians are competing with ourselves rather than cooperating. Else, the corrupt are competing with whom else? Roots of Economics lie in Sociology. If we don’t fix the population growth or increase the resource availability (most of it is not in our hands), competition will only intensify. The tendency to hoard does not whither away. But none of our leaders (and media too) are talking about this. They are rather interested in dividing us by religion, income levels, black or white money holders. 

It is the season of Light, it is the season of Darkness. Hats off to Charles Dickens!