Accept As it is just
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last activity : 03 12 2011 18:29:31 +0000
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Why do we Protest more in the Indian Economy
The other day I heard in the street a protest announcement in progress against governments frivolous handouts to big business houses. The poor fellow like almost all Indians don’t know the worthlessness of such protests, since ones bread and butter comes out daily from the activities the big business houses perpetuate. I could recognise that it is purely a displaced aggression, a psychological object transfer where the people involved duly transferred their object of persecution that is the economy not in a position to channelize the forces in a way that is conducive to their existence. The jobs they have, the activities they undertake infact all the events in an economy has direct impediments on the events the investment community led by the business houses here in India does.
So the solution lie in which they should know is to channelize the economic forces in rightful directions rather than make it go helter-skelter so that it become of no use to any citizen like it has been happening here in India since independence.
The right channelling of economic forces take shape when the government decides to direct their policies depending on the macro economic ‘circular flow model of the economy’. The model consists of four boxes with a fifth box. The four interconnected boxes as 1)the government 2)the household3)manufacturing4) the intermediation means banking and 5)the markets. They boxes are called the ‘sectors’ of the economy rather than the deluded version spreading around here as the different type of manufacturing and services which are divisions of each sectors.
The transitory functions are the government directs regulations, welfare, social insurance at the household and the reverse flow from household to government is taxes. Similarly the flow from government to manufacturing is regulation and taxes flow back ward from manufacturing to government. Household transit to manufacturing by way of investments and employment flows backward from manufacturing to households. Households transits to Banking by savings being placed with banks and banks transit backward by way of interest rates. Banks transit to manufacturing by way of credits and manufacturing which are companies and corporate put their savings through reverse transition into banks from whose deployment they make their wealth criterion met.
So when these transitions are visible in an economy they tend to be lesser protests and better welfare, productivity which is wealth generation for the nation, transparency, better believable journals, efficiency for the economy.
This is just the starting point for designing a sovereign economy and from here the macroeconomic policies can be designed based on gaming the economy through game tools like ‘extensive form graphs’. This creates more fore-see-ability for the economy and citizens choices made out for rationality pays off and the economy will be on a path to more moral outcomes which is what less trouble for citizen means.

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