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

Hello friends.

Yes I will agree that govt pumping money in to the economy is not a solution for our country why because now our country facing more more economic problems. First our govt recognize the where the problem was occurred and rectify it for do this it should spend the money first after that it should monitored it.

Pumping of money in economy indirectly speaks extra money. Extra money comes from people in rural areas. Because all the peoples of India are in rural areas. They spend their life on cultivating crops. So in that way our government encourage them like provide more quality subsidy and provide fertilizers for less cost. So we increase our growth.

I will agree the government policy of investing the money into the economy, as it generates lot of employment opportunity to different section of people and more over when you spend some money on any purpose you will definitely have outcome also, it is up to you to decide how to spend the money and procedures to make it prosperous. At last this not the policy that makes advantage but procedure and strategy to implement it efficiently.

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 money is not at all a good solution.

If it is done then common people will get effected most. Because of uneven distribution of money in our country, Money will reach mainly to affluent people and never will reach to poor and needy people. Inflation is an another reason. High prices will again break the health of poor or middle class family.

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.

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.

Hi Friends, I would like to present my views on this topic. Pumping money means contribution of extra money. Government putting more tax for society welfare. But due to this rich people are still reach but poor people and middle class people are becoming more and more poorer. Huge inflation is going to occur in our country. I Think government should make that type of policy which can extract money from rich people and poor and middle class people not going to be worse.

Hai friends.

Our economy occur so many problems, but our economy have more current account deficit so our finance minister take more action to reduce the current account deficit so India raise to our cash inflow in foreign direct investment so this type of money use to pump our economy to lend more amount to all the sectors through the bank loan this is one of the best way but FDI only is not solution, otherwise government take quantitative easing that means print the new currency also undervalue the Indian currency already the value is going undervalue so don't take quantitative easing.

In this situation all the production is going down so pump money is not only solution also government and reserve bank of India take action to reduce the monetary policy that means reduce the interest rate this is good solution to reduce our economy problem. Also India have more corruption in all the sectors so reduce the corruption is good solution.

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.