Wednesday, June 24, 2009

Global Economic Imbalance - The cause is CULTURAL, Stupid

Can the root cause for the massive economic slump around the globe emanating from the US of A and the Western economies be due to factors other than 'economics'? Yes, says the author S.Gurumurthy in his two-part column (Part 1 and Part 2) in TheHindu BusinessLine. The way he explains the origin of the crisis & the spend-thrifty nature of the Western world, particularly the American lifestyle, one can only agree. He has compared the economic depression and the way it is dealt with in America and Japan and there can't be a more telling comparison of the way the two people coped with the crisis.

The conclusion he arrives at finally - the root cause for the crisis - is very convincing, if we, as Indians, can think about how our parents & grand parents used to mentor us about being thrifty in life, even at the cost of foregoing some simple day-to-day pleasures. I am not sure how many of the current generation Indians are following this rather than going the American way.

Let us hope this article creates some awareness about the worth of savings in every Indian so that India continues on its path of economic liberalisation in its own calibrated way so as to equip itself to face any economic disaster which it may encounter in its journey.


Vijay said...

The real cause of the economic slump is spending more than what you can earn. Even in Mahabharatha, Narada says something about family economics. Every individual must save atleast 1/4th of his earnings. Otherwise, it is going to be disaster. But we forgot all our ethos and go behind the Americans.

RKN said...

Corporates should take responsibility to circulate these kind of messages internally which will open the eyes of so many people. Over a period of time these kind of activities will make the impact.