Hi people.
Disclaimer: This is not an article from an economist, but a next door person who knows some basics of economy and Stock trading.
Generally, I m not a kind of person who talk much with people during travel. But this experience wen I came from Cbe to Chni has made me write this post. The person whom I refer is Mr. Ramesh, who works as a salesman in Saregama, Chennai. We were generally havin a chat in bus durin travel about his job and my job. I had bought ‘Naanayam Vikatan’, one of my favorite magazines, for killin time before taking the travels. This was what, which led to the discussion.
Let me describe what SocioEconomics is first, It s more than just economics, study of financial aspects and economy of country. Of course it s not an opt definition but in my terms. Socio economics is economics dealing with a concern more about the people. There was an article in the magazine I referred, about imposing of tax of 34% on stocks bought and sold within a short period.
Ramesh as a salesman had the talent of conversing in his viewpoint and overwhelming the other person’s. We had a disagreement regarding the Share trading concept. I ll describe our agreement in his view and in my view.
Ramesh s View:
The share trading stagnates the money in the country to flow only in certain areas and leaves the downtrodden people as it is. All the rich people invest the money in share trading and money circulates within them. The people who get the money investing large amount of money for daily trading earn money bogusly. So SEBI ( Securities Exchange Board of India) must impose a ban or large tax for those transactions, though now there are lot of regulations now regarding that, strict laws must come in place. This makes an imbalance in industry too.
Instead of that if a person invests a money like in buyin some 10 acres of land (worth Rs.10000/acre) in remote area. If u buy large areas, the person selling generally hikes the land price. The land would be generally owned by a poor farmer or so ( I mentioned remote areas ) . He would sell it at a price of (Rs.12000) or so, helping him serving his daily bread and may be for his son s education or daughter s marriage. Though it sounds illegal, it serves bread for a poor family also, the rate of surrounding areas may increase, makin a profit for the Guy who bought it too.
Else if it continues like ‘Rich gets richer and Poor get Poorer’ it ll result into a civil war.
My View:
Share trading, though looks like a horse trading game, serves good for country. When the company which is listed at a large prize, it expands and generates employement indirectly. Ofcourse getting the son or daughter educated is in hands of the Poor guy. The above I know thousands of people who turned into crorepathis from lakhpathies in Coimbatore area overnight when IT Park was said to be turning up there. This cannot happen in areas of remote south. I know a stretch of area of 60Km on way to Tiruchendur from arupukottai , no soul is in between it, except for some houses here and there and a single hardware industry in it. U can count in hand the houses in between. Though we can speak of rich people investing in remote areas, it s jus a day dream. Government must be first sincere enough at least to give 100% education esp. till Under Graduation to people. That’s the only way we can eradicate the difference in the percentage of people below the poverty line. I don say that our education system is gr8 but sufficient enough to get job for earning daily bread.
I openly agree that the pay I get or generally an IT professional get is much higher for his tech strengths , few exceptions but.
I end wit this note, “U must not work for making Money, but make Money work for you”, a quote from a Financial Book author. Anonymous.
Ck.
