Modi’s suit is talk of the town. As usual there is criticisim for the cost of the suit – One Million Rupees (~$16,000). Here is the positive aspect of it.
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| Courtesy BBC |
How do we raise the standards of the nation then?
THIS IS HOW IT WORKS:
If we pay Rs 50,000 for cloth, and 50,000 for stitching, you can see the number of jobs it creates if we have 1,000 suits. However, if we pay 500 and 500, the employment drops dramatically, and those who get 500 will have less disposable income to buy things, and that will cut the jobs of what they consume… and that will ultimately cut your salary, why pay you so much? And if that is cut, you buy less, buy smaller home, smaller car, and that will cut the other jobs….
We all should spend, that is how we progress and the wealth multiplies.
The money we make is because people are willing to pay us more for the work we do, a little more than it is worth and that is the fodder for economic growth.
Richness and spending is good.
The only two evils of richness are; hoarding the money under the pillow, as it does no good, and taking advantage of the workers in their situation, that would be evil.
Being rich must be admired, it is good. They don’t eat the money, they spend it, and that creates jobs. The only people that create jobs for you and me are the ones with money by opening factories, shops, software companies.
Responsible capitalism is the best thing that has happened. In the United States and India should wholeheartedly emulate it. Then comes sab ka vikas, of course to sustain the vikas, social cohesion is a must – if splintered along religious, caste lines, India will not make it. That has been my consistent message for over a year now.
Mike Ghouse for India
http://MikeGhouseforIndia.blogspot.com