The After Corona Effect and REVIVAL of ECONOMY : Micro-Economics Is The Key for India To Be Mauled & Made Stronger
Head Pic :: HEADPICTURE OF MICRO ECONOMICS
The After Corona
Effect and REVIVAL of ECONOMY : Micro-Economics Is The Key To Be Mauled &
Made Stronger 
Well – my THEORY has NOT to be compared with either the Nobel Prize Winners Mr Banerjee or Mr Amartya Sen. I’M NOT a World Famous personality in Economics but in my career for a short while I did have to chance to work for a SOCIO-ECONOMIC concern and for a little bit of time I was into the Economy and Preservation of INFLATION and my study I based on those readings and FACTS.
I have worked at the ROOT – LEVEL in many a villages and I have studied the DEFICIENCIES of ECONOMY in the root level at the villages of India and my studies is based on those readings and FACTS. Practical exposure and the scalabilities of economics which could be applied to the places and which have NEVER been applied till now by the Indian Government and now which needs to be applied on the economy is what I mention here.
I DO NOT totally AGREE to what Mr Amartya Sen and Mr Banerjee have to say about ECONOMICS at this crucial juncture when due the the Corona Virus , the infection has brought about the DOOMSAY and a TOTAL DOWNFALL in economics and in the area that connect the ECONOMY to the MICRO- ECONOMY and it’s field.
The BASE and the ASSUMPTION that my study here is based on the FOUR PANDEMICS which hit the WORLD in 1720 , 1820, 1920 and now at 2020 .
What the world then did was what I suggest here for the Indian Government to do and to fall on it to revive the Indian economy FAST It needs to be very fast say a period of NINE MONTHS and NOT more than that to revive the Indian economy and that will hold the country in the future. Anything LATE will KILL the nation.
My second study that I deeply DID before I write this piece on WHAT TO DO AND HOW TO THINK TO REVIEVE THE INDIAN ECONOMY is based on the FACT on the studies that I did that was done as an application all over the WORLD was the system applied on economy by the world over to revieve themselves after the World War
It was the MICRO-ECONOMICS which did see the world getting over the situations then from the WORST to the BAD and from there to the GOOD .That is what I take it and write here.
Bases of my NOTION on what I write-:
India is a country with a population of 1.30 crores. Out of this there are only 10 percent of the people who are SUPER-FILTHY-RICH – CLASS. Any thing will NEVER hit them for anything WORST.
Out of the 1.17 crores, there are about 50% of the population which can be straight away put and fixed into the middle class. These are about 58 crores of the people . They somehow salvage their prestige through the jobs that they do and that is the service .
Thus we are remained with 58 crores of DAILY WAGES WORKERS be it the MEN or the WOMEN and it is here that THESE category of the people are NOW TOTALLY devastated in every mean and by every manner.
It is here the WAGES per day and the concept of the RENT comes in because these labourers wherever they work THEY have to pay their RENTS and they are paid everyday in the systems and by the system that we call it a WAGE .
No sooner wherever the CONCEPT of the RENT and the WAGE comes the concept of the MICRO-ECONOMICS comes in and it is now for atleast a YEAR where the MICRO-ECONOMICS and it’s concept wil hold FAST and TRUE for India and whatever the Government does it will have to do it FAST to get the RESULT BACK – FAST and at the MOST a TWO-YEARS-OF-TIME-PERIOD will hold to get the nation FAST back on the track.
I will also discuss minutely about the BANKING system with the RBI to take care of the money distribution policy because IT HAS TO BE BORNE IN MIND THAT THIS EPIDEMIC CAN RESURFACE AND REOCCUR AS WELL.
Before I start jotting the main points here let me write and make to understand as to what is MICRO-ECONOMICS.
Microeconomics is that part of economic theory which deals with the behaviour of individual units of an economy such as a household, a firm, etc. It is the analysis of economy's constituent elements—households, firms and industries. Micro is a Greek word meaning 'small'. Thus, microeconomics means economics of small.
Importanceand " ESSENTIALS " of Micro Economics
How Does The Micro Economics Works
A basic definition of microeconomics is the study of how an individual, whether it is a single person or business, decides how to allocate resources, and the interaction that occurs between those individuals or businesses. ... Some examples of microeconomics include supply, demand, competition, and the prices of items
Important INGREDIENTS that The Government ought to work on Micro Economics :
Scarcity.
At this point of a time and at the time when the lock down period is slowly removed and when the labour force gets back into the job, the first thing that the Government needs to do is WHERE IS THE SCARCITY, at WHICH field of activity and raise the production in that field
At this point of a time the scarcity is there at the supply of food items, it could be any thing that is consumed be it the agricultural field or be it say biscuits, and other such items.This sector needs to be vitalized first .
Hence the labourers ought to be given the task of working fast in this sector.
Herein I shall describe the basic element of Micro Economics on which the Government of the day has to work and if they work on these PARAMETERS they will DEFINITELY taste SUCCESS
1.Demand.
A DIFFERENT kind of a DEMAND and it’s CONCEPT will arise here. Here it would NOT be the SUPPLY-NEED factor of the demand but it would be the JOB- PAYMENT factor. The demand will be focused on the PRODUCTION and NETT OUTPUT. It is the VARIANCES that will matter . The Government of the “ day ” “ cannot ” and will find it “Hard ” to keep the labourers for the day at “ bay ” in anyway. It is the sector that involves the labour ought to be opened fast but in a methodical manner so that the pandemic does not resurfaces. The CONSTRUCTION industry , be it the REAL ESTATE or be it the ROAD CONSTRUCTION to cite as an example will have to be given the TOP-PRIORITY .This I cite as an example.
Producers.
The PRODUCERS of the LARGE SCALE INDUSTRY will have to be selected on the principles of BASICS and NECCESITIES rather than the NAME of the INDUSTRIES. Say, at this point of time the defense manufacturers will NOT find a good market. Then what is the necessity.
It will be the PHARMA-SECTOR. Frankly too many vaccines, too many HAND-GLOVES, to many MASKS, voluminous SANITISERS would be the requirement of the day. Glucose to feed the labourers, the PATIENTS etc, SALINE WATER to be injected and inserted to the patients at the HOSPITALS for examples are the NEED of the HOUR.
This is the SECTOR that needs to be given the importance.The money ought to be put in the Pharma sector for atleast a period of two years so that every possible medicines are manufactured so that the entire nation is vaccinated properly and values of the shares of the industry rises and it goes up.It is this sector which will have to take the ADVANTAGE and the Government too has to invest in this sector say for the coming two years to put the nation WELL on it’s feet.
2.Supply.
The supply will depend on the transportation and the factor of time will play an important role. The goods have to be moved from one point to the other well within the consumable time. The moment will always give some kind of a BIRTH to the CONSUMABLE-TIME as the goods will have to be consumed in the time within and which prescribes it’s limit.
Hence the labour here also has to be given the requisite importance. This will NOW again will give the concept of “ CONSUMABLE- TIME ” a concept that was not to be seen after the World War-II . That concept has arisen now, and the labours now will have to act intelligently fast and smart.
3.Supply/Demand.
In the SYSTEM of Micro Economics where the MONEY has to be ROLLED FAST to RECOVER it FAST, the concept of DEMAND never is alone. It always gets connected with the SUPPLY.
For whatever is the demand the supply ought to be made in the same manner and the labours ought to be engaged in the same fashion. The CONSUMABLE INDUSTRY that produces not in a HEAPY-BULKY-MANNER but in a measured way now will start taking the shape and the Government of the day will have to put their mind into the same.
The labours too ought to be made use in the same fashion and the ONE who can balance this with the LABOUR will Win the RACE
Govt choice coupled with Interdependence .
Interdependence of the Government choice generally depends upon the MICRO MANAGEMENT where the Micro-Economy takes the CENTRE-PLACE and I shall put it down here ONE-BY-ONE..
Basic Concept Of Micro
Economics
Pics- : Basic Concept Of Micro Economics
I shall in short and in a most PROPHETIC
manner describe this points.They are IMPORTANT-HOLISTICALLY from
the consumers point of view and from the perspective of the nation.It involves around the farming, agriculture, production and the banking system. This is what ought to be followed very seriously for the coming two years to completely FEED the labourers and the daily earning workers who earn their living on the daily wages.It is as follow - :
. What To ProduceThe prouces ought to be GREEN VEGETABLES, CEREALS, EDIBLE OILS, MEDICINES and some consumable items. The FRUIT and it’s market too plays an important role now for this nation has to keep itself free for the next two years to face any breakdown that may reoccur because of the reoccurance of this pandemic
For Whom To Produce
It has to be borne in the mind about who will be the end use consumer Keeping that in mind the production ought to be raised.
Land, Labour Capital & Enterprise
The enterprise and the enterprenour ought to be the FARMERS and the manufacturers of those enterprise which and whose items in terms of the goods and the industries would be needed the most.The Hospitals, the infirmaries, the shops and its outlets, the everyday needs and it’s items that are consumed to cite as an examples are the basic necessity of the day.
Selling Goods & Services
The Goods and the services that are of very important nature like the services that can be obtained from the field of the communication industries, the services that could be obtained from the commerce and the commercial industries , the petty and the small scale farmers and ther farming industries will have to be given every measurable help to rise up to the situation.
Rent Wage Interest from the Bank & Services
The Banking industries will play an crucial role and they will have to play it fast The loans given by the banks will have to be got back very fast. Delayed payments by those who have not been paying their loans back to the banks after borrowing it from the Banks ought to be FIXED and their properties seized to see that the Banks gets their money fast.
One of the MOST IMPORTANT factor that the Government and the BANK will have to do is to PUT THE MUTUAL FUNDS back into it’s place immediately within a period of say a YEAR.
After the size of the Banks that was pruned to about 12 from the 27, the MUTUAL FUNDS all of a sudden became the HOT PROPERTY for the people to invest in all the banks, ie both the Private sector and the Public sector Bank. There was a hope by the people that the Banks will do very good and the mutual funds will be taken a good care by the Government and the banks.
However this VIRUS and the Pandemic has squashed all the amount invested into the mutual funds.If the Government does not take proper care to bring it back to it’s old place then the sale of NSC’s and other financial sector like the Unit trust Of India and mant other Government Bonds and the share will not find any buyer.This ought to be noted and taken care immediately by the Government and all necessary steps ought to be taken that the MUTUAL FUNDS are brought back to it’s place immediately
Government Shares, Bonds etc Government Negotiable Instruement Act
The VIRUS and the Pandemic has squashed all the amount invested into the mutual funds.If the Government does not take proper care to bring it back to it’s old place then the sale of NSC’s and other financial sector like the Unit trust Of India and many other Government Bonds and the share will not find any buyer.This ought to be noted and taken care immediately by the Government and all necessary steps ought to be taken that the MUTUAL FUNDS are brought back to it’s place immediately .
The CHAIN-REACTION will follow. People first invest in the MUTUAL funds. This is a kind of a share. It gives a good return much more than the FIXED DEPOSITS that are fixed by the investors.
Once the MUTUAL FUNDS gives a quick and a GOOD RETURN, the SURPLUS MONEY that an investor gets is rolled into the other Government NEGOTIABLE INSTRUEMENTS like the NSC, the UTI and the Kissan Vikas Patra certificates etc.
The principal amount again is put and rolled into the MUTUAL FUNDS and this reaction that is forming a CHAIN goes on.This is how the MIDDLE CLASS people roll their money and multiply that.
If the Government fails to bring back the MUTUAL FUNDS and the amount invested by the investors back into the same place, the other invest as explained will HIT the man and the Government at last will have NO MONEY at all in the POST OFFICES and the BANKS to roll it into the business and this will cause a NATIONAL CALAMITY from which the mass in general will have to face the DEATH by all means
Both the Reserve bank of India and the Government will have to take this immediately.This is the MOST important BANKINF FUNCTIONALITY that the MICRO-ECONOMICS holds and retells the Government and the RBI to act to put the public monet back into the places.
Here those like Lalit Modi, Niraj Modi, Nirav Modi, The “ KING ” of good times, and those who have taken loans after pressuring for the LOANS from the Ministry of Finance headed by those who reined from 2004 to 2014 loans on the TELEPHONIC ORDERS from the various Ministries and have STILL not repaid their loans and are absconding, they and their properties have to be SIEZED immediately and ought to be auctioned to put the money back at those Banks.
Comparism between the TWO Graphs depicted above from 2004 to 2013 as illustrated
Kindly notice the GRAPH on the left hand side One would find that the RED graph which depicts the MICRO-ECOMICS and it's elements that encompasses it have DIPPED drastically from 2004 to about 2015.
It was the the Year 2015 May 22nd 2014 to be precise the Modi Government took it's charge From 2015 it started rising up.That is very much evident from the figure
Now notice the graph on the RIGHT hand side.One would see the RED LINED GRAPH placed between 4.5 to 5.5 points on the scale of development.This is the kind of MICRO-SCOPIC DEVELOPEMENT that the Modi Government 2.0 has done it on the MICRO-ECONOMY level and that is why the IMF and the WORLD BANK says that INDIA WILL BE THE ONLY COUNTRY WHICH WILL HAVE A POSITIVE GDP FIGURE OF 1.9 WHEREAS THE USA WILL HAVE A NEGATIVE FIGURE OF 9.2
To SUMMARISE- the Government from 2004 to 2014 kept the POINTS of the DEVELOPEMENT on the scale between 1.5 to 2.5 over a decade and this Government ie the Modi Government 1.0 and now at 2.0 had and has kept in on the scale between 4.5 to about 5.5 on the scale of DEVELOPEMENT when it boils to Micro-Economy . In other words this Government in a span of 6 years had done and ACHIEVED almost DOUBLE of the Government which could do it in a SPAN of 10 years.
They BARK a LOT about the NDA Government all about it's ECONOMIC policies.The FIGURE which is the figure and the GRAPH of the WORLD BANK that connects itself and relates to the Indian Economy depicting the MICRO-ECONOMY which I have places here really DEMONSTRATES Mr Manmohan Sinh and Mr P C Chidambaram led by Sonia Gandhi about their policies on the economy fromt of India and the NDA led by Mr Narendra Modi and the two Finance Ministers they had, Mr Arun Jetli and now Mrs Nirmala Sitaraman that we have it now .This is for the people who have a HEAD to see and learn.
The PRIVATE BANKS like the ICICI, the HSBC , the HDFC, the Kerala Banks etc ought to be for some times REGULATED by the RBI especially in the matter of the deposits that has been done by the public in their MUTUAL FUNDS.
The more the GOVERNMENT takes an evinse interest in the matter of MUTUAL FUNDS their depositors and put them to the place the better will be the yields that the Government will get
My LAST FEW SUGESSTIONS TO THE “ GOVERNMENT ” - :
I would lastly put a few suggestions to this Indian Government about HOW to put the nation back on it’s feet-:
A ) > . Take it down in your note book. The time is MICRO-ECONOMICS and NOT the other one.The RENT and the WAGES and the INTERESTS of the banks will play a MAJOR ROLE to ROLL the money back into the business.
B ) > The COMPONENT to GET the money will be from the WAGE EARNERS and the LABOURERS
C ) > The SMALL SCALE INDUSTRIES, THE REAL ESTATE, the PETTY FARMERS, the petty AGRICULTURISTS, the PETTY SHOPKEEPERS, the PHARMA INDUSTRIES, the ones who work on the ROAD SIDE for their daily bread and butter, the COTTAGE INDUSTRIES, the ANCILLARIES, the SUBSIDIARIES in terms of the INDUSTRIES ought to be HELPED to stand on it’sfeet FAST and about 50 crores of the population work in this sectors for their daily livelihood
D ) > . The FOOD INDUSTRY manufacturing BREAD, CHAPPATIS, BUISCUITS, and such allied items like pickles, pappads etc has to be made to ROLL immediately after the LOCKDOWN perios is over
E ) > The Banking SYSTEM has to be REVAMPED in the sense that the Cash reserve ratio has to be INCREASED.It means that the minimum amount that ought to be hold by the Bank has to be MUCH MORE.The RBI has to lay a plan and a limit for the same. WHAT HAPPENS IF THE DISEASE REOCCURS again. There are EVERY CHANCE that the disease will reoccur.
F ) > The Banking sector which deals with the MUTUAL FUNDS has to be brought back to it’s feet such that ATLEAST the PRINCIPLE AMOUNT invested by the depositor be given back to the investors and the depositors who have put there money at th the Bank, else the deposits and the purchases of the other Government NEGOTIABLE INSTRUEMENT will get affected This will DESTRUCT and DESTROY the ECONOMY to such an extent that the Government will HAVE no STRENGTH to again stand on it’s feet and RESURRECT themselves.
G ) > The one’s who have taken the loans and are not repaying them and the one’s who are ABSCONDERS ought to be brought back to the books and all the money taken by them as LOANS ought to be RECOVERED by either seizing their properties and auctioning them .
This Government will have too many CONSULTANTS, too many an INSTITUTIONS and TOO MANY ADVISERS at various levels to advise them on the economic front. Whatever I have jooted here may be added to their REPERTOIRE and analysis may be done to implement the IDEAS
I GUARANTEE follow my ADVISE and YOU will see the RESULTS
I might not be from a HARVARD but I KNOW THE PALMS OF “ ECONOMICS ” as I have worked in this field in the remote and the most NEGLECTED area to study very MINUTELY about where does the MALADY lies as far as the Indian economics is concerned when it boils down to LABOURERS and the VILLAGERS and the way to ECONOMISE them to stand on their feet.
Regards
Shyamal Bhattacharjee
The Author Mr Shyamal Bhattacharjee Chattisgarh on July 6th 1959 He received his early education at Carmel Convent School Bishrampur and later at Christ Church Boys' Higher Secondary School at Jabalpur. He later joined Hislop College at Nagpur and completed his graduation in Science and he also added a degree in B A thereafter.
He joined the HITAVADA, a leading dailies of Central India at Nagpur as a Sub-Editor ( Sports ) but gave up to complete his MBA in 1984 He thereafter added a Diploma In Export Management.
He has authored THREE books namely Notable Quotes and Noble Thought published by Pustak Mahal in 2001 Indian Cricket : Faces That Changed It in 2009 and Essential Of Office Management in 2012.
He has a experience of about 35 years in marketing
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