Showing posts from March, 2009

Real consumption vs Consumption vs population

Stimulus bills, stimulus bills and more stimulus bills to revive the collapsed economies all over the world.

What do these stimulus bills do? Try and increase the economy by increasing the money flow in the economy and make people CONSUME more.

So, it's all about consumption. Oh, I forgot that the world over which tries to imitate the US style follows the Keynesian pattern, where consumption is the most crucial thing.

So, more consumption and hence better growth rates. Without Keynesian way system India would never have clocked the rates because much of its growth is bellowed by the internal consumption. For that matter US will not retain its status as the world's economic power but for the mammoth per capita consumption that its population have.

But this consumption, which most of us should/would have realized by now should be the real cause of worry because we have limited resources or limited access to them. Hence in the long run consumption has to be reduced.

I do not wa…