Government Pumping Money into the Economy is not the Solution for our Economic Problems

Pumping money in economic is not solution there are various factor which affects our economy like. 1. Export & Import-India is main importer of crude oil and other various commodities and export is very less so we should think in export perspective of commodity. Government should deduce their subsidy on exporting to growing export. 2. Debt Market-every individual try to deposit their money in bank at risk free rate there only 10 % of population deposits their money in debt instrument if government should attract investor in debt market so our economy can boost. 3. To provide special facility for establish new entrepreneur's in country because its supports production and provide employment and deduct the import. 4. We should think in terms of education in village which can help to grow our economy. 5. Our country is mainly depend on agriculture so we should provide new technology to the farmers and provide subsidy in fertilizers and pesticides. These factor can grow our economy if we would think on that side. Pumping of Money in Economy means contribution or extra money. Extra money comes from which sources: if RBI print new notes and pump in the market the result outcomes is huge inflation and the mismatch of Demand & supply. So that pumping money in the economy is not only a solution but searching new scheems like increse the production of crops, by increse the amount of export material and changing the intrest rate, CRR and Repo rate government solve the problem of economy.

One question which comes up on my mind is "where do we pump money from", borrow from a rich nation or release the black money abroad, what is going to be the solution. As everyone say rich get richer poor get poorer. Frequently heard words in India are poverty, corruption, bookies, match fixing, all these words have a sole reason money.

When countries abroad thinks of technology enhancement, We Indians proudly say we are on the verge of finding a technology which would detect corruption. So as an Indian I would say rather thinking of pumping money better solve the social issues which are directly the cause of economy depletion.

Yes I partially agree with the topic "GOVT. PUMPING MONEY IS NOT THE SOLUTION FOR ECONOMIC PROBLEMS".

I don't say govt should not spend money on economic problems, it should but it should be in such a way that it is beneficial for all in great extent.

->Goverment should be able to find the economic problems and it should spend money on it and should see that problem is solved. I mean to say that govt should spend the money and also should monitor thatwhether the problem is solved or not.

->Government should spend the money in villages where there are no proper roads, no current facilities and help the children to make them study.

->Now a days many government hospitals are not provided with the necessary requirements. Government should spend money on them as it is very much required for poor people who don't have money for their treatment in private hospitals.

->Goverment should see that the most common economic problems like increse in petrol prices, commodities should be reduced.

->Government should provide ways to eradicate unemployment problem.

->By doing this, There is no doubt that our country will become a developed country.

As my friends said, pumping money is not a solution of our economic problems. Whatever money government invest in our economy, only 30% of that reaches where it has been invested and remaning money gone to the pockets of our politicians. So there is a need to invest the money at the right place and correctly so that it can reach to the place where it can be used correctly. A seperate department should be erected to have an eye over the money government invest in diffrent fields only then it can help us to rise our economy.

At present time when the value of rupee depleted to 59.99 rs per dollar and inflation rates are as high as 10% pumping of money in the economy is not a wise choice. Pumping of money in the economy simply means entry of extra money from outside in the economy and this can happen only if RBI print more currency notes and this simply will create inflation in the economy as more money is now circulated people can afford goods at more rate which in turn inspire producers to increase the rates of the product.

In any country this could be a good option to encourage producers upto a limit but in a diversified country like India where accumulation of money is in few hands it is really disaster as now poor people can not afford that commodity or service. So inspite of pumping money in govt should concentrate on extracting money from rich either by increasing taxes for high income zone and reducing from low income zone or by increasing duties on luxury commodities.

Moreover export should be increased in order to balance the deficits in trade and this can be done by decreasing the duties on export plus encouraging the production of export oriented goods. Also, the distribution of money in the economy should be balanced by providing the basic amenities in rural areas plus working on the educational system and economics reforms of various kinds such as FDI should be paid heed.

Yes definately I agree that pumping money in economy doesn't mean grow of economy. We all know that 70% of real India resides in villages. We always talk about the India which is signing in cities and we never give a thought to India which resides in villages. The basic infrastructure such as roads, water, hygieine, education, electiricity, is missing in real India. The foreign comnpanies which are investing in our country want to have a safer destination in cities thus the cities are signing. Because government care musch about the FDI rather than thinking about the common people. Unless or until the common people gains on economical front there will no real economical growth. The govt should create infrastructure in villages and towns so the foreign countries don't hesitiate in investing in town and villages. When the dollars will reach to the villages and towns and India that will be the real Indian economic growth.

Hi Guys.

As we all know that India is an agricultural country where maximum people depend on its irrigation so it is clear that how many earning resources are available for the people for their livelihood where there they are not able to even to grow their crops properly because of poor technology provided by the government. Farmers are not able to utilize government's utilities because of poor management which is being taken place under corruption we can say that government is giving money buy not in proper manners that are why problems are not getting short out pumping the money. And the same thing is happening with the education sector which is also under corruption so because of different-2 kinds of corruptions money is not able to utilize properly in all the sectors.

So over all, I'd say that only giving money is not enough to develop the country there is need of proper management so that money can be utilized properly for the nation.

Thanks.

Hello friends.

Here the question is whether the pumping money is the solution of the economic problem or not?

One question arise here is that from where this extra money to be pumped will come?

Definitely, as always happens in India, the poor people will get affected in getting this extra money and the result is they will get more poor.

If this happens then this idea of pumping money can not be the solution at all.

Yes, it can also be a solution if this extra money does not affect any one and the investment of this money should be at the right place. But, this is not so in India, because, more than half of the amount will go into the pocket of the politicians.

Also, it is not the only solution of the economic problems;

So, our government should think of the others solution that are: they should take care of the rural areas of the country,

Government should provide good facilities to the poor and also it should decrease the tax for the poor people.

Also, subsidies should be provided to the farmers.

Another solution is that the government should increase its export by increasing the production of the product to be export and should decrease the import by producing those products in the India.

So, according to my thinking, pumping of the money is not the only solution to the problems and instead of this, government should think of the other solutions.

Pumping money into the economy actually doesn't solve the problem. As more and more money is being pumped, accumulation of money occurs in the society. It might be in the hands of some politically powerful people and it rarely finds the needy. Increase in money has another adverse effect too. When people have more money, their demands increase and they are willing to pay more than they would have actually payed for that before. So the sellers tend to increase the prices of commodities and services. In effect the increase in money didn't do its job.

An efficient method will be to analyse the different aspects of the economy and decide where ever the boost is needed. It requires qualified officials and dedicated politicians.

Pumping of Money in Economy means contribution or extra money. Extra money comes from which sources: if RBI print new notes and pump in the market the result outcomes is huge inflation and the mismatch of Demand & supply. So that pumping money in the economy is not only a solution but searching new scheems like increse the production of crops, by increse the amount of export material and changing the intrest rate, CRR and Repo rate government solve the problem of economy.