In times of recession
the majority is suffering from imbalances in the ECO-NO-MIC sphere and tries to
strike a balance, which is the sole objective of ECONOMICS. It is not a problem
for those who have saved enough to survive the bad times, but, not everybody
has time and capacity (savings) to deal with the situation. Money is a power of
imagination with the only plausible purpose of facilitating "an exchange
to take care of those who depend on us". And, as we all know we do not
consume money rather we consume "real goods and services". History
shows that money has severely failed to meet the demands of those who never
have/had it, and, has even created a ruffle for those for those who have. So,
mainly the chaos/disturbances/imbalances are coming from the
monetary-mind—past, present and future—and is now controlling the mind itself,
instead of fulfilling its ultimate purpose. But, this is not to conclude, for
time's sake, that the whole monetary structure is flawed, which can be a
gift/present in disguise to help those who need you most (poorest).
The plan is to operate
in the whole market through Human-Resource development and management and,
then, to set-up the organization’s own market with the profits to reduce the
cost of raising living-standard of the population which is the goal of
Economics. Market is mainly concentrating on those who are capable enough of
income, consumption, saving and investment, simultaneously, which is around 30%
of the population. The rest 70% is surviving on Rs 100 a day which is
insufficient for a "good-life" and there is a huge gap between their
demands and supply. By nature, market is stable/un-stable depending upon the
demand-supply conditions. Actually, demand is the purchasing- power in the hands
of the one who is demanding the supply of goods in a money economy, even beyond
borders of countries which has made the markets volatile more than ever. The
market leaders are the Government and private players, developing and managing
human-resources.
"The idea starts
with adopting economically weakest and their coming generations on a sincere
promise of a planned, secure, and, bright future on the condition that we will
provide all their rational demands (as per government's norms) from training,
if needed, to employment to goods and services, but not money to avoid
instability (economic and psychological) within the organization. But, the
organization transacts in money with other organizations only to create a
surplus by saving the economies of scale they would have paid and their
savings, as well, to fulfill demands and avoid instabilities at a minimum
cost". This will be a kind insurance for the rest of their lives and for
their coming generation in lieu of their labour- skilled and unskilled- to the
society, directly or indirectly. The value proposition is to remove poverty,
unemployment –due to lack of skills and recessed economy- and inflation, in and
out of the organization, and ultimately, raising the living-standards of the
population to a level optimum within the existing resources. The current
scenario of the economy points towards widespread poverty, unemployment, and
inflation due to imbalances in income, consumption, savings, and, investment
with money underlying all of them with the only rationale of facilitating a
healthy trade-off for mutually dependent satisfaction, e.g., supplier's
satisfaction depends upon demander's satisfaction and vice versa. Therefore, in
a nut-shell, "the purpose of money is to take care of those who are dependent."
The welfare model
proceeds as follow:
Step 1:- Convincing the
population about our plan and make them understand well, the policies and
objectives of the organization to avoid any discontent/misunderstanding in the
future before adopting them. And, we will try to know if they want some changes
in our policies through majority rule.
Step 2:- Identification
of their skills/aptitude to know how we can ADD-VALUE to it, if needed,
according to market's demand to provide/arrange jobs for them in exchange of
money that will be deposited directly to the organization's bank account. And,
with that money demands, in and out, of the organization will be managed at a
minimum cost.
Step 3:-With the
profits, the organization will start setting-up its own market to reduce the
cost of creating better living-standards.
The model is based on
the proposition that "survival demands fulfillment of needs which in turn
demands employment for those who did/do not get a chance to plan for
themselves. Employment generates demand which attracts supply and thereby
induces further employment, consumption, and ultimately, profits and most
importantly satisfaction." This idea has its origin in R.F.Kahn's
employment-multiplier which Keynes used to create investment-multiplier, both were
economists, but, Keynes is more popular. Moreover, the problem of the Phillips’
curve which says that the relationship between employment and inflation is a
positive one may be rectified with a model close to a barter system since
inflation is basically a by product of money. But, of course, in a barter
economy inflation may exist in the shape of higher-demands but it would be a
lot easier to spot the rationale. The second most plausible argument for money
as a medium of exchange is that it has a store value. But once we are insured
for all the generations the store value will not be a big issue. And, the third
most plausible explanation for money is that it gives power to execute choice
but the section of society we are aiming at already does not have any choice
they are fighting for survival. But even when they would be able to execute
their choice in a barter economy that choice will be according to their grades
with a wide range of variety to choose from. Our ultimate purpose is to address
poverty by setting a living-standard for the masses up to the level of bliss by
addressing the Human-Resource market (development and management) and then the
market as a whole. The flaws of the monetary-system as revealed by the global
meltdown, itself, prompted me to come-up with an idea with which
economic-stability of a system can be maintained without disturbing the peace
of mind of all with a high rate of real growth and development.
In my enquiry into the
purpose of money (most common denomination of every kind of wealth) of
organizations to individuals what i found that Verily! Its "ultimate"
purpose is to take care of those who are dependent. As we all know, first
individuals depend on their parents, then on themselves and then future depends
on them. This necessitates the demand for money which in turn demands a job.
The present global meltdown of the economies World-over points towards the lack
of stabilizers, by creating surpluses/capacities while using money as a
"medium of exchange."
Of-course, it is the
psychology of the man which is effecting the economy hard. The insecurity he
feels is driving his actions. The information he is getting from various
sources affects his consciousness to behave in a particular way. But, we cannot
expect everybody to be so economically conscious even if they claim to be.
Because, is it almost impossible to have all the information about the market
to make use of it in order to maximize utility from our incomes, the most
important constraint after time to get what we aspire. Here, this saying fits
in “LIFE IS SHORT AND ART IS LONG”. Here the role of media also comes into the
purview since it is the engine of information and instead of presenting a
gloomy picture of the economies they can highlight the potentials. For example,
when interest rates are at their minimum they should tell the masses that it
would not fall further and in the future it is going to rise only. In such a
case we can expect the end-user of the information to make its use in the same
way he makes use of information regarding recession but for a positive effect.
So the point is, if information is power make use of it at the right time at
right place.
As far as gold and
modern monetary system is concerned the potentials of such crisis will always
be there. Here, once again the human psychology intervenes because as
human-beings we are all same but when seen from an economic perspective some
are better-off than others and the individual fight to reach the “bliss”
through monetary means are bound to be stronger in worse-offs which is the
majority and the problem also lies in the fact that nobody has a clear idea of
what bliss is, not even me. But, undoubtedly it can be compared with some level
of satisfaction. And, in an attempt to achieve that level in short-run risk-taking
and speculation are easy ways which our monetary systems well provide. But even
in that case it is not too difficult to find a few who can proudly say that
they are completely satisfied with what they have.
Therefore, in an
opinion it can be said that as long as our cumbersome and complex monetary
systems provide rooms for speculation and excessive risk taking they will also
provide rooms for unwanted economic cycles. Actually, they need an over-haul
here to make the system simple and user-friendly. The rationale behind saving
and different interest rates for different period is understandable. But the
same unit of money fetching different returns for different product of
different companies in the same time period does not deserve any justification but
the lust to leave everybody and everything behind. And, i think humanity has
progressed much to equate a person’s monthly basket of needs respectfully in
return of his services to the society in a time bound manner which could be a
probable solution of our un-tenable economic-systems.
