Capitalism, this is what every management student is taught for years together now. Making money is the main motto or the ideology for every soul diving into this world from all the business schools in the world. India is no exception to this. Do I sound Leftist? Do you think I am not interested in money? No, I am interested in making money, but one think that we should understand. Let's see what capitalist has brought to India.
1. More industries and jobs to the country
2. Increased number of Billionaires in the Country
3. Luxury and purchasing power to Indians.
Doesn't all these look bright. Yeah, it looks wonderful and makes us proud. We can now call India a developed country. Wait, are we developed fully? Are we self sufficient? and there are so many more questions like this for which the answer is NO. Then what the capitalism or Opening of market given us.
1. Greater rift between rich and poor
2. Unplanned development
3. Last but not the least the "Western Recession".
There used to be a time when the companies provide pension for retirees and people also save money in their Provident Fund(PF) which is until recently was managed by The Govt of India. This money is used by the Govt for infrastructure spending and other developmental activities. But now our highly educated Finance Minister is transferring the fund to "Fund Managers". This is not a new phenomenon,as most of the western world follows this. Just to give you an idea, in America the retirement plan is called 401(k). This is nothing but our PF where we contribute certain percentage and the employer matches the same. This money is managed by fund managers who work for some of the global big names, Viz Morgan Stanley, Franklin Templeton etc. Haven't you heard these names recently. Yes, these are the companies that lost billions of dollars this year and the past year. A recent estimates says that the American pension fund lost close to 3 trillion dollars.
So what is this fund manager do? They take this money and invest in stocks, bonds and other investment portfolio and generate revenue. They are going to generate revenue and why am I whining. There is a huge risk involved in this. The money invested in these vehicles and stock market will give rosy appearance but the real value of the money will be far less than it is appears. The value depends on the performance of those companies on which the fund manager have invested. If that particular company goes out of business then the total value invested with that company becomes ZERO and we loose all the money. This is what has now unfolded in America and we are following the same foot steps. It's better to stop now rather regretting later.
Making money is not bad but it is always better to generate wealth. We in the name of capitalism is blowing up the value of the money and actually it isn't worth that much. On the other hand wealth is created by saving the money and investing properly. Capitalism is always not the answer to growth. Capitalism and Socialism are just the phrases that doesn't carry any meaning. A country should always do what is good for the people and think of ways to generate wealth.
If some one thinks I am insane then here is a question
"If capitalism is good then why in the land of Capitalism every one is crying for help (Bailout) by people's money (Tax). What do you call this may be "modern capitalism" "
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