MEMO FROM NARA

Earning money is very important for everyone. So we all earn money by various methods. Some are legal and others illegal. All these money thus earned are used or rather spent for buying food items, dresses, paying bills, buying vehicles, houses and other essential items for our family members. At the same time, some money is saved for the future use. In fact, the money earned is spared to others directly or indirectly.

Spending money is to get something like goods and services, hence our money goes to various people who sell these goods and services and in turn the money flows to all the people involved in the production and processing of goods and also to people who are involved in offering us short and long term services. Thus our money is penetrating into all strata of people to make the economy of our country strong. In other words a bit of our money is in everything and everywhere. Direct or indirect spending certainly helps people around us and us too. Thus large number of people gets their job and involve in this money transfer or spread. It’s a kind of economics I suppose.

Indirect spreading of money happens by depositing it in banks or investing in stock market or in business. The banks offer interest against savings and fixed deposit accounts. Similarly the stock market yields more or less money depending on the market fluctuations. The money we invest in banks, stock markets or in business are being reinvested or loaned again in various projects with a handsome interest. A part of such interest is credited to us. So the money we have can yield us more money too.

On the other hand if we keep the money in a locker it doesn’t grow; it remains idle. It doesn’t benefit others! It is ‘still’ or ‘dead’ money. Such locked up money will not bring economic growth in a country. The so called ‘black money’ is the ‘still’ or ‘dead’ money. Some of us buy gold and keep it in lockers of bank safely. They may bring in more money when the price of gold increases, but it doesn’t help the circulation or spreading of money to accelerate the motion of economics.

The people who have religious faith liberally donate money/gold to temples like the one at Tiruvananthapuram, Tirupathi, Sabarimalai and many other places in India. Huge amount of gold bars and money are idle with these temples. Of course small part of these donations is used for certain social services like health care and education. However, the wealth thus accumulated is going on growing day by day.

In fact, money not used cannot promote the economic growth of a country. Vibrant economy is result of vibrant use, spending, spreading and investment of our money. Banks do their job of advertizing for various projects for investing money and try to collect as much money as possible from the public to loan out for infrastructure growth, real estate establishments, various kinds of businesses, transportation etc. Sometimes some people loot these loans and disappear and migrate to other countries. There are some incidents in the recent past. I feel economics work at all levels of our everyday life. If we think seriously, we can improve our country’s economy to a great extent. The point is: Do not keep your money idle, invest and make it to grow.