Not Thinking Anymore

What's In The Pocket

Can be a bit boring but kindly stick till the end.

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Oooooh
So a chapter on a political issue.
Wasn't I excited about that?

But which one.
You see right now the political scenario of India is an utter mess. But if you ask me this mess is hella interesting to me.

I mean CAA, NRC, JNU Student Violence, COVID, Communal riots, Migrant crisis, Locust Infestation, India-China standoff, EIA Act, NEP,  Assam floods, Ram Mandir, Rafael, drowning economy, dead journalism, emerging fascism, and rising cases; I have so much to write about. And these are current problems, I didn't even start digging yet.  Hell, an entire new book can be started with a never-ending promise.

We are desperate people. The only thing that matters to us is the roti, kapda, makkan, and yes wifi. We all have a family and self to support so the political matters are only restricted to living room talks and not the issues that we waste our time and energy over. As long as there is no direct effect, we can't be bothered. I am not being sarcastic here, it is the reality of the matter.

Therefore I hereby dedicate this chapter to our pockets and wallets. Let's discuss some economy. I will try to simplify it as much as I can and will discuss only the points that affect us directly.

It is known to all that how badly the lower economic strata are affected by COVID19.  Migrant crisis was just a manifestation of there miserable condition and a lot more is yet to come. Well, that's their burden. This pandemic affects the pockets of our middle class and above the middle class as well. Let Kunal be the name of our subject under study. Assume he is a middle-class man working in a cooperative section on a salary of 30 rupees. 

The first and least heavy blow that came to his income was NO BONUS. Obviously, when the entire country is going through a pandemic and a lockdown, he is not getting a bonus. And this is assuming that he didn't lose his job like many others and didn't get a cut in his salary.

According Centre for Monitoring Indian Economy (CMIE) there is only a 1% income rise in 2020 whereas it was a 14% rise in 2019 in the months of April to June. Across all income groups, the proportion of respondents reporting an income rise fell from 33% to 6.7%

The second blow was the rise in prices and inflation. If we say that previously his expenditure was 15 Rupees but now due to inflation and rise in prices of fuel and basically everything his expenditure becomes 20 rupees. This is only inflation but god forbids if he or anybody in his family gets COVID then he might have to get a loan just to get treated. 

As said by RBI governor Shaktikanta Das, retail inflation rose to 6.09% in June from 5.84% in March. He announced," Taking into consideration all factors, the first half of the year is estimated to remain in the contraction zone. For the year 2020- 21 as a whole, real GDP growth is also estimated to be negative."

You know what that means, that previously we were struggling to walk after this pandemic started we have staggered to crawling and I fear what will happen when finally the pandemic fades out which by the way seeing the rising cases seems only wishful thinking.

 
One day Kunal's colleague is called by their boss and told that due to the current crisis they have to let him go. Kunal sees that if his colleague could be cut off unexpectedly so can he be. Hence, like any normal person, he thinks it's best to start saving. Before pandemic, he used to save 5 rupees and spend 5 rupees for his fun and entertainment.
Now he stops spending that 5 rupees on his fun and stars saving them too.

See, the economy is all about spending money and consumerism. A good and steady flow of money in the state ensures a good tax collection and hence a higher GDP resulting in low inflation rates thus making normal people like us and Kunal live an easier life.

One person's spending is another person's income. Since Kunal will now not spend money on shopping or movies or in restaurants, the business of these places will suffer. Fuelling the already slow down the economic state of our country will fell in further recession, resulting in job losses (maybe even Kunal's).

Amongst all this don't forget that pandemic is still raging high in our country. I don't think there is a need to give statistics on the number of cases that are rising faster than light.

No doubt that the economy is opening slowly as the unlocking progress but that doesn't mean that things will come back to normal. People are going to be skeptical about how and where they spend money if they are still left with a job. It is going to take a significant amount of time for things to be fine again. Our GDP was already suffering and now with this crisis, it will be foolish to hope that its impact will not affect us.

All I am trying to say is be smart here. Yes, try to be safe and save your money because that is the only choice you have right now. Apart from that don't indulge in any heavy shopping this festival season unless the price is in your budget and affordable. If you have lost a job during this time or are in the danger to lose it, just be prepared for it. Have some sort of financial backup and cut down your expenses.

Even RBI is helping by inducing some money into the system and not changing the repo rates hence making it easier for the commercial banks to take loans. Overall things are going to be a little tight but we and Kunal are going to make it.

The disheartening thing is that there are no appropriate measures from the government. There 20 lack crore fiscal package was more of a sham than a genuine help.

I can carry on and on about how the government has failed to act in the pandemic. Not only it failed to control the pandemic by doing the basic testing and tracing but also failed to hold up the economic front.

But the thing is on we people and how do we react. See, if you support Mr. Narendra Modi, there is no problem but supporting the man doesn't mean you shut the rational part of your brain. I know people selected him to be the prime minister of our country but the very meaning of democracy is that you start questioning the person you chose the very next day he comes to power.

Trust me, I am not a leftist.

I don't believe in this right and left ideology. According to me right, left or tail are wings of the same bird, and without criticism that bird is sure to shit on the nation. So asking the government why there was no testing and tracing started in March or why migrants crisis was not dealt with timely or why people are dying in floods or why the hell the fuel prices rising with leaps and bounds; is my democratic right and to be called an anti-national for this is unjust.

And don't even get me started on the media and their shitty journalism. They don't cover a single serious issue but keep on promoting government's narrative that everything is fine which the hell it is not.

Look, people, for a second, let go of the everlasting fight of religion or government, and just focus on the real problem that, there is an economic slowdown, cases are rising and the government is doing almost nothing to prevent or protect the country.

So just be responsible for your self. Follow all the precautions for COVID 19 even if it means that you have to get a bath twice a day (my least favorite part), do it. Be clever where you spend your money and if possible don't see 9 pm news on television.

#pocketsoverpolitics ;)

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That was a chapter guys.

I am not an expert on finance and economics so whatever the information that is provided above is a summary from various credible sources. If interested in knowing the sources kindly ask for it in the comments.

I didn't mean to offend anyone and if offended, please accept my apologies.
If you want a detailed chapter about any issues, kindly mention it in the comments as well.

Any views or questions are most welcomed in the comments.

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Stay safe and healthy.
Bye😊