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13:37-39 - "The one who sows the good seed is the Son of Man," replied Jesus. "The field is the whole world. The good seed? That is the sons of the kingdom, while the weeds are the sons of the evil one. The blackguard who sowed them is the devil. The harvest is the end of this world. The reapers are angels

11 Sep 2019

ECONOMY--Why is the recession in the Indian economy being exaggerated?

Recession is nothing but convergence of greed of government to extract more taxes , greed of big businesses to be more profitable by reducing quality and using unfair practices and also of careless arrogant employees giving pathetic service as long as profits are coming. It is the punishment given to businesses and government by consumers by restricting their spending.

First read this story ( slightly modified by me in present context) circulated on social media since last few years :
JEEVAN LAL was a Samoza seller in an Indian town . He used to sell 500 Samosa everyday on a cart in his locality. People liked his Samosa for last 30 years , because he cared for hygiene in preparation and selling, would use good quality oil and other ingredients , provided free green and sweet chutneys with Samosa. He would distribute all unsold samosas to poor people, cow, dogs etc and did not sell unsold stale samosa to people next day.

JEEVAN LAL earned a good reputation for his business and enough money from samosa selling and he never faced downfall in his sale in last 30 years. He was able to fund his son's costly B Tech and MBA education in a famous private college in Noida out of his earnings.
 Recently his son PRENV completed his MBA and came back to home as he could not get appropriate placement for job in his campus . PRENV started taking interest in his father's Samosa business. He had not been involved in his father’s business earlier as he considered that an inferior job.
During MBA, PRENV was reading a lot on Recession coming up in global economy and how it was affecting job prospects, increasing unemployment etc and he thought he could not get placement due to recession. So he thought that he should advise his father about risks to his business of samosa selling due to incoming recession.
 He told his father that recession may cause fall in sale of samosas so, he should prepare for cost cutting to maintain the same profit.
JEEVAN LAL was glad that his son knows so much about business and taking interest in his business. He agreed to follow advice of his son.
 Next day, PRENV suggested using 20% used cooking oil and 80% fresh oil . People did not notice the change in taste and 500 samosa were sold.
PRNEV was glad for his tactics and got motivated by the profit made by this savings. Next day he suggested his father to increase share of used oil to 30% and reduce the quantity of free chutney.
 After this , only 400 Samosa were sold and 100 samosa were distributed to poor people and dogs.
PRNEV told his father that recession has really set in as predicted by him , so more cost cutting is to be done and they would not give unsold samosas to poor but would fry them again next day and sell them . Quantity of used oil will also be increased to 40% and make only 400 samosas to avoid wastage.
 Next day 400 samosas were sold but customers were not feeling good old taste. But PRNEV told his father about savings because of his smart planning . Father told him that he may be knowing better, being educated.
 Next day PRNEV decided to use 50% used oil , do away with sweet chutney and provided only green chutney , made 400 samosa . That day only 300 samosa could be sold as people started disliking the taste.
PRNEV told GEEVAN LAL “Look, I had predicted great recession is arriving and sales would fall . Now this is happening. We will not throw away these 100 stale samosa but fry and sell them tomorrow." Father agreed to his MBA son.
 Next day, 200 fresh Samosa made with 50% used oil and 100 stale fried samosa were offered for sale but only 200 could be sold as people sensed the drastic fall in quality.
 PRNEVsaid that recession has really set in and now people have no money left to spend so we should make only 100 samosa and recycle 100 unsold samosa and stop giving paper napkins .
 After this only 50 samosas could be sold .
 PRNEV told his father " Now recession has taken people in its grip . People have lost income. So, this business will be in loss and we should stop selling samosas and do something else."
 Now his father started shouting on his son:
 " I did not know that they teach cheating in the name of MBA course . I lost my money in getting you MBA education. In these 30 years of samosa selling, I never had recession but your greed for profit brought recession in my business and caused its closure. Get out of my business and I will get it back to earlier level on my own . If you want , I can hire you for washing dishes as that is the only thing you can do despite being MBA educated . "
 Thereafter , JEEVAN LAL started following his age old wisdom and fair practices in business. Within a month his sale again reached to 600 samosas.

** This is just a story highlighting the fact that education without wisdom (fair business practices) does not work in long term. It does not mean that MBA qualification is useless.

In India, Customer becomes King in Recession, other times Government and businesses behave like King !Govt. implemented the GST  only for the benefit of citizens. But really they did not get the benifits.All goes to business people.

I give you a simple data to compare . Every year at least an average household in India must be buying services and goods ( clothes , insurance , mobile , internet, investment, travelling, consumables, white goods, medicines etc) worth Rs 2 lakh . Considering a modest 10% GST , the tax paid by each household would be Rs 20000 .
If we assume 10 crores such families exist in India[2] , the GST comes to 20 lakh crores every year but financial year 2018-19 showed that the overall GST collections stood Rs. 11,77,369 crore[3] . Where does the rest amount go ?
Share it if you feel the message should reach the culprits of the recession who are posing now as victims of recession !

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