SPEND TO GROW
GROWTH WILL CREATE
MONEY TO SPEND
An Interesting article by S.Gurumurthy OF THE NEW INDIAN EXPRESS
Japanese save a lot. They do not spend much. Also Japan exports far more than it imports. Has an annual trade surplus of over $100 billions, that is Rs.5 lakh crores. Yet Japanese economy is considered weak, even collapsing.
Americans spend, save little. Also USA imports more than it exports. Has an annual trade deficit of over $400 billions, that is over Rs.20 lakh crores. Yet, the American economy is considered strong and trusted to get stronger. Indeed a contrast.
But where from do Americans get money to spend?
They borrow from Japan, China and even India. Virtually others save for US to spend. Global savings are mostly invested in US, in dollars.
India itself keeps its foreign currency assets of over $50 billions in US securities. China has sunk over $160 billion in US securities. Japan's stakes in US securities is
The US has taken over $5 trillion from the world. Want to know it in rupees? Rs.2,50,000 crore!
So, as the world saves for USA, Americans spend freely.
Today, to keep the USA consumption going, that is for the US economy to work, other countries have to remit $180 billion every quarter, that is $2 billion a day, to the US! Otherwise the US economy would go for a six. So will the global
economy. The result will be no different if US consumers begin consuming less.
A Chinese economist asked a neat question. Who has invested more, USA in China, or China in US? The US has invested in China less than half of what China has invested in US.
The same is the case with India. India has invested in US over $50 billion. But the US has invested less than $20 billion in India.
Why the world is after US?
The secret lies in the American spend, in that they hardly save. In fact they use their credit cards to spend their future income. That the USA spends is what makes it attractive to export to the USA. So, USA imports more than what it exports year after year. The result. The world is dependent on USA consumption for its growth. By its deepening culture of consumption, the US has habituated the world to feed on US consumption. But as the US needs money to finance its consumption, the world provides the money.
It's like a shopkeeper providing the money to a customer so that the customer keeps buying from the shop. The customer will not buy, the shop won't have business, unless the shopkeeper funds him. The US is like the lucky customer. And the world is like the helpless shopkeeper financier.
Who is America's biggest shopkeeper financier? Japan. Yet it is Japan which is regarded as weak. Modern economists complain that Japanese do not spend, so they do not grow. To force the Japanese to spend, the Japanese government exerted itself. Reduced the savings rates, even charged the savers. Even then the Japanese did not spend. Their traditional postal savings alone is over $1.2billions. that is. Rs.60 lakh crores, about three times the GDP of India. Thus, savings, far from being the strength of Japan, has become its pain.
What is the lesson?
That is, a nation cannot grow unless the people spend, not save. Not just spend, but borrow and spend.
Dr.Jagdish Bhagwati, the famous Indian-born economist in the US, told Dr.Manmohan Singh that Indians wastefully save. Ask them to spend, he said. On imported cars and, seriously, even on cosmetics! This, he counseled, will put India on a growth curve. But like Japanese we too are not obliging.
Modernists may not, but one who has read the Mahaabhaarat will, know. A Rishi by name Charuvaka gave the same advice when Pandavas were around, which modern economists are giving today. He told the people to spend and be happy, if need be by borrowing. No need to repay, if you cannot, he counseled. No sin would attach, he assured.
Fortunately his advice was rejected by us thousands of years back.
That is why perhaps India is alive as a nation. Our old companions are in archives today.
Now we have the very same advice. That is saving as sin, and spending as virtue.
This is central to neo-economics. Caution. Before you follow these neo-Charuvakas, get some fools to save so that you can borrow from them and spend, after you exhaust your savings. This is what US has successfully done in last two decades.
A NEW EVERGREEN METHOD FOR
PVAF GUJARAAT EDUCATION
PVAF's (Prajaapati Vishva Aashram
Foundation) Operations Board of young prajaapatio is committed to raise 1
KAROR RUPEES A YEAR for PVAF's Gujaraat Education Program
(PVAF GEP). To realize this objective for the next two
generations, these young and well educated prajaapatio of PVAF Operations
Board have been brainstorming about various EVERGREEN
They have come up with the idea of empowering each prajaapati family to
to fundraise through any number of methods that are feasible through
the joint family efforts. A family of 4 can raise a lot of funds if they work as
a joint force rather than as individuals. This way even students in the family
can organize fundraising events among its age and social groups. The family can
name pool all the fundraising in the name of say ABC
FAMILY TRUST. ABC could be a name in memory of a grandparent, mother,
father or any family member. Or ABC could be any other name one wishes. This
will also provide anonymity to a lot of donors who do not wish to publicize
EMPOWERS AN ENTIRE FAMILY
CONTINUALLY FOREVER FOR
PVAF GUJARAAT EDUCATION
This FAMILY TRUST can continuously keep
on raising funds on birthdays, anniversaries, memorials, diwali day as
boni-daan, marriages, graduations, getting a new job, getting a
promotion....This suggestions are not new as it is a prajaapati tradition of
long time that we always pledge something to a dev or devi as a wish for all of
the above and even for getting our wishes come true for ourselves and our dear
ones...this pledge to a dev or devi donated as gnaan-daan will be the top
ranking daan as per shree
krishna, shree raam and all rushio
The FAMILY TRUST can alos organize small
fund-raising events within their own social circles at any social gatherings.
Most of humankind is ready to donate for educating a child anywhere in the
The FAMILY TRUST can also adopt a child
for educating the child through out his life from primary school to university
The FAMILY TRUST can continue from
generation to generation.
Historically prajaapatio have always shown glimmers of proactive aatma-jyot
here and there. Examples are the 19th and 20th century prajaapatio
moving to far away strange lands from gujaraat for breaking out of
poverty. The prajaapati aashram supporting students are another
example. Now this EVERGREEN FUNDRAISING through a FAMILY TRUST will take us
to a structured and organized way of vedik lifestyle......
The PVAF's Gujaraat Education
Program (PVAF GEP) has a vision to one day give every prajaapati
child in gujaraat full education so that every child can have a good
employment in the knowledge based industry of today and tomorrow.....
This PVAF's Gujaraat Education Program
(PVAF GEP) is a world wide community effort not only prajaapatio but
will be spreading to the entire humankind. Fundraising is in
full swing currently.
SPONSOR A STUDENT FOR
RS 20,000 A YEAR FOR A 4-YEAR DEGREE
immediately assist estimated 125 prajaapati
students every year
who cannot go to university.
your donation to
your local samaaj PVAF Fundraiser
Vishva Aashram Foundation
3103 89 Street, Edmonton, Alberta, Canada, T6K 2Z1
MORE INFORMATION EMAIL: PRAJAPATI
VISHVA AASHRAM FOUNDATION
DETAILS OF PVAF GUJARAAT EDUCATION PROGRAM