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What really has cooked the world economy and layoffs?
sadashivan | February 2, 2009 at 05:41 amby
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- Major portion of the world live in poverty. Unequal distribution of economic growth led to limiting purchasing power to limited people in the world. Whereas number of industries grew created heavy competition to attract limited number of customers by tempting with number of risky incentives and facilities.
- Growing competition among bankers and builders to grab more and more customers, on artificially escalated cost of land and homes, without scrutiny resulted defaulters.
- Corruption and greed for fast bucks prompted unproductive investments for artificial price escalation of housing and essential commodities. Living cost of human became expensive. When fuel and food prices shot up unbearably started to reverse.
- Lapsed regulation and control over functioning of financial and industrial sectors eased them to go as they wanted.
- Excessive Government expenditure to manage home and world to soar Government borrowing. Non-productive heavy government borrowing disturbs productive, private investments to slow down economic activities.
- Excessive capitalism is curse to any country as country economy is molded by capitalists to favor them. They have power to corrupt politicians and bureaucrats. Election systems too are hazardous as becomes self interest to get elected though may be by funding by capitalists.
- Wrong leader means wrong decisions that devastate economy. In 6.2 billion world population we are still in scarce of real leaders who understand people and their needs. Need someone to bring Socio-Capitalism to assist capitalism and work towards society too.
- Growing international competition declined own exports to world and production and services causing loss of job opportunities.
- Free market mainly benefited to multinational companies who widened their wings to most of the world but for small and medium set ups was the time to close down due to high cost of production against imported one.
- Flooding cheap imported goods and services trims own employment opportunities. Loosing jobs is loosing country productivity and movement.
- Major Asian countries economy and development relied on exports to rich countries. They failed when rich failed. Whereas own country people suffered scarcity of basic commodities. Managed GDP with limited urban population.
- Rural population remains neglected or forces migration to urban cities. If development and investment done to rural economy, lot could have buying power to boost economy. Economic planning and investment based suiting urban and some rich industrials thus rich gets richer and poor get poorer especially rural lots.