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

Hello friends,

I think that pumping of money in a developing economy like India has its pros and cons.

(1) As govt needs to implement its present policies at ground level more strictly instead of thinking to invest more money. Because we all know that the some share of money invested by govt on various infrastructure project are going to the personal account of many politicians and officers. Which cause scams like 2G, CWG etc.

(2) Govt should encourage local and small entrepreneurs to increase exports and reduce current account deficit. Which increase foreign exchange and appreciates rupee.

(3) Govt should regulate its on-going programmers/policies within the specified period. In order to avoid any misapplication of funds allotted.

(4) on the other hand if govt pump money in economy it increases the employment, GDP and literacy rate.

Dear Friends,

Role of government in any economy should be welfare of citizens and development of economy. Macro economy deals with the developmental role of government. As a cloud collects water from the sea and distribute as rain in the agriculture fields. This leads to development and welfare. So shall be the role of government. To collect more tax from the rich and contribute to the welfare of masses.

But alas, this is not happening in true sense in India. Resulting rich are growing richer and poor are becoming poorer.

The role of government is important and merely by adding deficit in the budget to pump money in economy leads to inflation. The government should work more positive. It should provide money assistance to the needy (i.e in mass welfare projects) by taxing rich more and sparing poor.

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.

It is not the solution for our all economic problems. To pump money onto our economy government Firstly should build up a strong base for the upliftment of our economy. Because pumping money into our economy unnecessarily increases our fiscal deficit, and as Indian govt is corrupted it also adds in the pockets of our highly respectable ministers. Govt should take strict actions 2 combat with corruption in order to improve the current situation of our country where poor are getting poorer, and riches are getting more rich.

I think if govt literally wanted to invest money, it should invest it in education, and health care. These 2 are the very imp. Aspects of the country's growth.

Yes, Pumping money is essential but in some areas only. For an instance, There should be enough public transport system to promote public transport which would directly result in less fuel consumption by an individual. Other areas where pumping money is education, that too Quality education. Children should now be made to concentrate on practical ways of learning and should give up theoretical approach. Money should be invested in research of Machineries, agriculture, pharmaceuticals which would reduce our need to import such products and would directly save our valuable foreign currencies. Thus, I conclude that spending or pumping money should be in right direction.

Hello, friends. According to my scenario only putting the money is not the solution to improve our economy. Indian economy is based on agricultural and education so government should invest their money in these 2 fields. One important thing is that first, we should change our self in the field of corruptions. It is the wall which resists our economy. I don't have any questions regarding government policy to give the money in each field but it is not spent in a specific field. So I would like to request you people that don't take the money as a bribe and never give the money as a bribe. If it happens then our economy would definitely growth.

Pumping of money in economy is not solution there are various solution which affects the economy like.

India should reduce import of crude oil. Indian government should develop e vehicles and implement subsidy on oil like gas cylinders if people want more oil than they should give more charges. India should increase export commodities. Indian government Should provide more jobs to youngster by open new business and provide more facilities that persons who are trying to implement new interpret new business. Indian government Should provide more facilities to farmers so they can produce more crops that helps growth of Indian 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.

There is no meaning of putting money into the economic sector until we do not have a corruption free government as we heard and read on the daily basis that govt will put this new programs in a city and that much amount in that sector but all these words are just has the meaning in dictionary but not in the real world so if we really want to develop our nation than we have to improve our education system first and import rate should be shrunk as much as possible and put effort in generating the resources more and more in our country and this will ultimately increase our export rate which improves economic status of our country.

I agree that pumping money into the economy is not a perfect solution for our economic problems because money itself is a very big problem as rich people already have large amount of money so poor people also wish to get it. Problems are increasing day by day by the increase in prices and this will also affect on the wealth of poor and middle class persons. In my opinion the government should have to control prices and by implementing new and useful laws as to decrease the economical problem's. Money is not a solution of everything but the usage of money at the appropriate time may be proven very useful.