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

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63 comments Page 5 of 7.

Unnati said:   1 decade ago
We need a good governance to ensure that the money is being utilised properly. For a developing country like ours we need the government to pump money for various reasons like education, infrastructure, medical etc. But corruption is the major drawback of our country. There is a lot to be developed before we even come to par with countries like china, so we need the government to give this economy a boost but we also need stricter laws to ensure that the money is being fully utilized.
(5)

Tanutanu said:   1 decade ago
I completely agree with the point that pumping of money is required by the government in all the stressed sectors like:education, health, agriculture etc.
But, by just pumping in the money won't be a solution. The government has to make sure that the taxpayer's money which the gov is pumping in actually results in doing something good and does not add to the black money of the corrupt people.
The scams in nrega, aadarsh society are known to us and that is the reason we want to know how our money is being utilized.
(4)

Sajid said:   1 decade ago
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.
(88)

Shikha said:   1 decade ago
Yes it is the duty of our elected candidates to work for us. If the economy is in need then government should pump in money, but it also has to keep a check on it whether it's being used in the right direction and for said purpose.

1. With more than 60% of population which is =/>25yrs, our govt. Should develop employment oppurtunities even in these slow economic conditions.

2. When the whole euro zone is in deep economic trouble with its increasing debt our govt. Should invest in manufacturing sector as it will end up in giving us industries, employment & self reliance which will make us resistant to ups and down of the world economy like brazil. Moreover we will not create highly "qualified labourers" as services sector is booming.

3. More investment should be towards education & health care facilities. As a healthy mind rests in a healthy body and moreover "Padhega India tabhi to badhega India".

4. Bailout packages should be given to striving industries but it should not be that much frequently and easy. As it is THE TAXPAYERS MONEY so should be used but not misutilised.
(7)

Akash hp said:   1 decade ago
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.
(6)

Nagapriya said:   1 decade ago
Yes I agree with this topic. Government just pumping money to meet the needs doesn't solve a problem. It is the government responsibility that it provides the solution. For e. G the money alloted for repairing roads is not utilised properly. Instead they take a fewer steps and after a certain period they leave the roads in a nasty condition which increases traffic and inconvenience to society. Not only this, people should start how to increase exports.
(6)

Jimut Rakshit said:   1 decade ago
Yes, I am totaly agree with the statement that government pumping money in economy is not the actual solution, spending money is not the actual solution to get the hell out from the problems, the think is that whether you prperly utilized the money?or shall it utilized in proper sector?Though we are rising country, developing country, but we still far behind the developing economy like China, South korea, South africa, interms of our infrastructure, education, technology, rural India is as usual as it is. Let's take an example from economic India->India's shipping channels being too shallow, much of the containers destined for the country and carried by such large vessels have to be trans-shipped at ports in Colombo, Singapore or Dubai. Indian ports won't be able to handle the world's biggest cargo ships when they start sailing because facilities in this country aren't capable of handling the vessels or the volume of containers they carry. Our product is such inferior that our neighbour country even Bangladesh don't want to accept our product!so in what sense or which way government pumping their money?It's totaly a bullshit. Even many small scale & middle scale industry's are dying. So is that make any sense goverment pumping money in economy?Even company like kingfisher also suffered from 468 cr loos. The main problem with our economy & people is we only believe in Import from developed nation not in export. So we are far behind the foreign reserve surplus which is having with the country like Japan, Russia, China, South korea. Even our GDP which is US$3,892.752 which is expected to be in 2016 which is far behind country like Jamaica US$ 9,178.414. If goverment properly utilizing their money in manufacturing hub by properly utilizing our strength chief labour, which was exactly doing by our neighbour country China. Then only our country economical can be solved.
(21)

Ankit Agarwala said:   1 decade ago
Yes , I agree with the topic because its not the ultimate solution to this problem but only temporary which will have myriad side effects on our economy. But if the Govt encourages export, Invest in infra as well as harness more quality work force and educating the youth and illiterate will be a pragmatic decision as we know that 2/3 of our country is an agrarian economy.
So invest in an sector that fixes the root causes of our problems and see the GDP rate rising rapidly and eradicating poverty and corruption from its root and become a super power nation within a decade or so.
(4)

Ranjit basu said:   1 decade ago
According to me pumping money will solve the monetary crisis for short term but adopting significant measures would be a better idea in long run.

Pumping money into the economy always had an adverse effect in form of increased taxes which in turn the people need to pay.

More over the Indian govt mostly rely on FII for infrastructural project and other development. So need to concentrate on attracting FDI and FII and prevent erosion of domestic treasury.

Since Indians have a peculiar habit of saving rather than spending the govt should find out new ways and means to attract these small funds towards the development of the society. One such way is mutual funds.

Apart from this if the government really wants to improve the economic condition of the society then it should have a proper focus on the usage of funds and the application of funds in respect to the activity.
(24)

Pankaj said:   1 decade ago
According to me government should pump money in the economy but in right direction we dont have proper infrastructure facilities, healthcare facilities, educational facilities,so how can we dream of a country with high growth rate and development. As previously said by one of the participant that government should keep track of the activities which it undertakes by pumping more money.
(6)


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