7/9/13

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

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Government Pumping Money into the Economy is not

the Solution for our Economic Problems
@ : Home > Group Discussion > Economics - Discussion Room

Points to remember before you participate in this disuccsion:

Assume, you one of the member of a real group discussion.
Take the initiative to participate and contribute your thoughts.
Express your positive attitude towards providing the solution.

Shraddha said: (Wed, Jun 12, 2013 07:38:06 PM)

At present time when the value of rupee depleted to 59.99 rs per dollar and inflation rates are as high as 10%
pumping of money in the economy is not a wise choice. Pumping of money in the economy simply means entry of
extra money from outside in the economy and this can happen only if RBI print more currency notes and this simply
will create inflation in the economy as more money is now circulated people can afford goods at more rate which in
turn inspire producers to increase the rates of the product.

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Government Pumping Money into the Economy is not the Solution for our Economic Problems - Group Discussion
In any country this could be a good option to encourage producers upto a limit but in a diversified country like
India where accumulation of money is in few hands it is really disaster as now poor people can not afford that
commodity or service. So inspite of pumping money in govt should concentrate on extracting money from rich either
by increasing taxes for high income zone and reducing from low income zone or by increasing duties on luxury
commodities.
Moreover export should be increased in order to balance the deficits in trade and this can be done by decreasing
the duties on export plus encouraging the production of export oriented goods. Also, the distribution of money in
the economy should be balanced by providing the basic amenities in rural areas plus working on the educational
system and economics reforms of various kinds such as FDI should be paid heed.

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Prakasam said: (Thu, May 9, 2013 06:58:08 PM)

Hai friends.
Our economy occur so many problems, but our economy have more current account deficit so our finance minister
take more action to reduce the current account deficit so India raise to our cash inflow in foreign direct investment
so this type of money use to pump our economy to lend more amount to all the sectors through the bank loan this
is one of the best way but FDI only is not solution, otherwise government take quantitative easing that means
print the new currency also undervalue the Indian currency already the value is going undervalue so don't take
quantitative easing.
In this situation all the production is going down so pump money is not only solution also government and reserve
bank of India take action to reduce the monetary policy that means reduce the interest rate this is good solution
to reduce our economy problem. Also India have more corruption in all the sectors so reduce the corruption is good
solution.
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Poonam said: (Fri, Apr 26, 2013 08:01:48 AM)

Hi Friends, I would like to present my views on this topic. Pumping money means contribution of extra money.
Government putting more tax for society welfare. But due to this rich people are still reach but poor people and
middle class people are becoming more and more poorer. Huge inflation is going to occur in our country. I Think
government should make that type of policy which can extract money from rich people and poor and middle class
people not going to be worse.
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Sharat Kumar Malick said: (Wed, Apr 17, 2013 09:30:09 AM)

Dear Friends,
Role of government in any economy should be welfare of citizens and development of economy. Macro economy
deals with the developmental role of government. As a cloud collects water from the sea and distribute as rain in
the agriculture fields. This leads to development and welfare. So shall be the role of government. To collect more
tax from the rich and contribute to the welfare of masses.
But alas, this is not happening in true sense in India. Resulting rich are growing richer and poor are becoming
poorer.
The role of government is important and merely by adding deficit in the budget to pump money in economy leads
to inflation. The government should work more positive. It should provide money assistance to the needy (i.e in
mass welfare projects) by taxing rich more and sparing poor.
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Karan Sharma said: (Thu, Mar 7, 2013 10:46:21 PM)

I agree that pumping money into the economy is not a perfect solution for our economic problems because money
itself is a very big problem as rich people already have large amount of money so poor people also wish to get it.
Problems are increasing day by day by the increase in prices and this will also affect on the wealth of poor and
middle class persons. In my opinion the government should have to control prices and by implementing new and
useful laws as to decrease the economical problem's. Money is not a solution of everything but the usage of
money at the appropriate time may be proven very useful.
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Ravi said: (Sat, Jan 19, 2013 02:59:05 AM)

Pumping money is not at all a good solution.

If it is done then common people will get effected most. Because of uneven distribution of money in our country,
Money will reach mainly to affluent people and never will reach to poor and needy people. Inflation is an another
reason. High prices will again break the health of poor or middle class family.

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Deep said: (Tue, Dec 18, 2012 08:51:16 PM)

Pumping money into the economy actually doesn't solve the problem. As more and more money is being pumped,
accumulation of money occurs in the society. It might be in the hands of some politically powerful people and it
rarely finds the needy. Increase in money has another adverse effect too. When people have more money, their
demands increase and they are willing to pay more than they would have actually payed for that before. So the
sellers tend to increase the prices of commodities and services. In effect the increase in money didn't do its job.
An efficient method will be to analyse the different aspects of the economy and decide where ever the boost is
needed. It requires qualified officials and dedicated politicians.
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Mohammad Najeeb said: (Tue, Nov 6, 2012 03:52:26 PM)

I will agree the government policy of investing the money into the economy, as it generates lot of employment
opportunity to different section of people and more over when you spend some money on any purpose you will
definitely have outcome also, it is up to you to decide how to spend the money and procedures to make it
prosperous. At last this not the policy that makes advantage but procedure and strategy to implement it efficiently.
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Sravani said: (Thu, Oct 11, 2012 05:12:42 PM)

Pumping of money in economy indirectly speaks extra money. Extra money comes from people in rural areas.
Because all the peoples of India are in rural areas. They spend their life on cultivating crops. So in that way our
government encourage them like provide more quality subsidy and provide fertilizers for less cost. So we increase
our growth.
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S.Bhavani said: (Fri, Sep 28, 2012 12:35:07 PM)

Hello friends.
Yes I will agree that govt pumping money in to the economy is not a solution for our country why because now our
country facing more more economic problems. First our govt recognize the where the problem was occurred and
rectify it for do this it should spend the money first after that it should monitored it.
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Manisharma said: (Sun, Sep 2, 2012 03:53:35 PM)

As my friends said, pumping money is not a solution of our economic problems. Whatever money government
invest in our economy, only 30% of that reaches where it has been invested and remaning money gone to the
pockets of our politicians. So there is a need to invest the money at the right place and correctly so that it can
reach to the place where it can be used correctly. A seperate department should be erected to have an eye over
the money government invest in diffrent fields only then it can help us to rise our economy.
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Vishal Jagtap said: (Sat, Jul 28, 2012 03:12:46 AM)

Hello Friends,
I would like to share my thoughts on this subject, First I would like to ask one question, What Govt need to pump
money in economy, the answer is obviously because of less liquid cash in the market, now why this cash is not
sufficient because our many politician people earned money from black business and they deposit money into
outside the country like Swiss bank, and this is the main reason our govt now facing the problem of liquidity in
cash, secondly now a days many people use plastic money instead of hard cash and that is also the reason like all
hard cash money is hidden and no one can ready to spend it. So my conclusion on this topic is definitely pumping
money into economy is not the solution but yes if our govt can concentrate on increasing new business and giving
maximum job opportunity to the young crowed. INDIA is based on agricultural so yes 75% population is belong to
village area and they are depend on farm and cattiness so govt has to launch some scheme or package which
helps them and ultimately its effected to all nation.
That's all from my side, thanks you so much for giving me chance and please rectify me if I am wrong.
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Sasikumar G said: (Fri, Jul 20, 2012 11:26:38 PM)

As per my opinion pumping money is not the sole solution to the crisis in the economy. I have only short term
effects and in turn it worsens the inflation. We require a long term strategy rather than thinking immediate effects.

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Other economic measures are to adopted along with pumping money in to the economy.

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Anand S said: (Wed, Jun 20, 2012 12:32:48 AM)

Government should spent money on certain areas and a board of members should be kept in place to monitor and
track the progress. Govt can also get into public + private partnership in raising funds and providing basic
sanitation for families below the poverty line.
In states like Tamil Nadu, Karnataka where IT, ITES, BPO has taken a new face, billions of Foreign Direct
Investments [FDI] are flowing in. Govt, should redefine tax policies in other states so that more & more MNCs
would set up the OPERATION bases in INDIA. Ex: Andhra has learned these technique and now the benefit AP
State has got is Microsoft has invested billions of $ in setting up the largest Development center in Hyderabad
outside which is the largest outside USA also FACEBOOK has its BASE in Hyderabad [only operational office in
INDIA].
As IT/ITES/BPO are getting popular amount the youngsters now, families living in Rural villages are getting loans
for their children to sent them to engineering colleges. Govt can share the burden of these poor farmer and reduce
the interest rates of the education loans.
India needs to grow more in areas like sanitation, integrated sewage system, infra us and transport facilities.
Airports, Ports, Bus stations should be upgrade with more facilities and easy access to major towns, cities. As we
can see Market is not stable and also India's rupees against US dollar is around 55 rupees IMPORT & EXPORT will
redefine the GDP growth of our economy, Govt needs to setup a special team to analyze and provide input to the
Finance Ministry for stable GDP growth.
Being Agricultural Country in background, Govt should provide beneficial mass health policies to the rural families.
Also Govt need to take steps against unemployment, If unemployment is killed, we could see smile on all the
youngsters.
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Neha said: (Mon, Apr 16, 2012 09:57:23 PM)

As far as pumping of money in the economy is concerned , it should be done prudently & govt should observe
money related problems very conciously it must be sorted out in a right way,not only by pumping in money in the
economy.
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Swathi said: (Tue, Apr 10, 2012 07:05:29 PM)

According to me pumping money in economy is not at all a fine solution to the problem. Instead spending money in
irrelevant areas it is necessary to put a maximum effort in making our India to be fast growing country all these
will be possible only when government take appropriate actions spending money in beneficial areas like education,
infrastructure, agriculture etc.
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Priya Dang said: (Tue, Apr 10, 2012 05:06:40 PM)

I don't agree with the view that government pumping in money is the only solution for economic problems. In
country like India the main problem which the country is facing is the problem of illiteracy which is the biggest
economic problem in our country. But government is not taking relevant steps to eradicate this problem. Just
pumping money will not remove economic problems government should launch programs to make people aware of
education and spend money in launching such programs which make people aware of importance of education.
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Unnati said: (Sat, Apr 7, 2012 05:28:22 PM)

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.
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Tanutanu said: (Sat, Mar 31, 2012 12:18:32 AM)

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

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

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.

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Sajid said: (Mon, Feb 27, 2012 07:00:50 PM)

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.
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The Economy
Money to Invest
Economy Crisis

Shikha said: (Sat, Feb 25, 2012 08:36:57 PM)

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.
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Akash Hp said: (Wed, Feb 8, 2012 10:20:19 PM)

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.
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Nagapriya said: (Tue, Feb 7, 2012 04:41:32 PM)

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.
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Jimut Rakshit said: (Sat, Jan 28, 2012 07:25:04 PM)

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?

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

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.

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Ankit Agarwala said: (Wed, Jan 4, 2012 12:03:04 AM)

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.
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Ranjit Basu said: (Mon, Dec 5, 2011 10:50:54 PM)

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.
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Pankaj said: (Wed, Nov 30, 2011 09:31:24 PM)

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.
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Kavitha said: (Wed, Nov 2, 2011 10:47:50 PM)

Yes i agree with the statement. In most of the cases the money suplied by the government is misused by those
who sit in authorities for their personal needs or they are not utilised properly in the areas of public interest. For
instance how many roads are remaining unrepaired? adequate health care is not still extended to the poor parts
of the country. What is actually happening..? the illiterate are mishandled.This is all the problem of governing
bodies not all are targeted but most of them, who uses the public money to satisfy their unsatiable greed.
Indian economy is mainly agro based, so famers shoul be encouraged, by providing money and equipping them
with the latest technologies, for this education has great role. Proper utilisation of land and wealth along with the
involvement of skills and newr ideas if put togeter will help the nation's economy.., so simply pumping money is not
a solution
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Sowmya Setty said: (Wed, Nov 2, 2011 05:02:37 PM)

Pumping in the money will not be a solution for the economic problem as because inflation and recession are major
economic problems which arises either due to more money in the economy or lack of money in the economy where
pumping in money will defiantly accumulate in few hands rather than spreading in the economy so either by
sucking the money from the nee-sh people to avoid inflation ex which Rbi takes steps as increasing the oil price,
alcohol and cigarates price etc. , and times of recession it take steps as decreasing the rates etc. ,
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Ms Khan said: (Tue, Oct 11, 2011 12:04:40 PM)

Yes definately I agree that pumping money in economy doesn't mean grow of economy. We all know that 70% of
real India resides in villages. We always talk about the India which is signing in cities and we never give a thought

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real India resides in villages. We always talk about the India which is signing in cities and we never give a thought
to India which resides in villages. The basic infrastructure such as roads, water, hygieine, education, electiricity, is
missing in real India. The foreign comnpanies which are investing in our country want to have a safer destination
in cities thus the cities are signing. Because government care musch about the FDI rather than thinking about the
common people. Unless or until the common people gains on economical front there will no real economical growth.
The govt should create infrastructure in villages and towns so the foreign countries don't hesitiate in investing in
town and villages. When the dollars will reach to the villages and towns and India that will be the real Indian
economic growth.

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Neetu Singh Lambha said: (Fri, Oct 7, 2011 01:23:30 PM)

Yes definitely pumping of money can not solution of economic problems, if our govt really wants to help, improve or
contributes in our economic than govt have to take some importance steps like, as we know that, Agriculture is the
back bone of our country 73% people depends on agriculture so our govt should provide new technologies for
farmers and it will really help to maintain the balance and make a strong back bone of our country because friends
nothing can change but we can change to our self according to these things and result will be front of you. Thank
you that is from my side.
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Mukesh Mk4 said: (Sat, Oct 1, 2011 07:19:50 PM)

I am not agree with the word pumping because the rising economy is paying back to the society and pumping is
irreversible process. Its a kind of investment, for the profit in terms of facility, living standard, higher education,
defense services etc. It maintains the liquidity of the market as well as market prices.
Picture a condition when govt has reduced the market investment then the bank interest rates will reach to sky. I
think govt must maintain an economy level in order to bear the small economic fluctuations.
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Shruti Ajey said: (Sat, Sep 17, 2011 01:21:39 AM)

Pumping money into the economy by the govt is certainly not the solution because the money is hardly utilized for
a noble cause. It seldom trickles down to the area where it is required and rather goes into the pockets of the
bureaucrats. The solution lies in enlightening the people who are indirectly running the economy. There is dire
need to educate them regarding the judicious and economic use of resources. India actually resides in its villages,
so it is must to educate the villagers on how to multiply their money by investing in fixed deposits.
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Neha said: (Wed, Aug 3, 2011 12:00:54 AM)

Yes. I partially agree with d statement. Monetary investment is obviously must for growth and economic
developmen. T govt needs to spend on weak sections of society to accelerate growth. But dats not sufficient.
Simultenously care shud b taken the money invested at right locations nd properly spent for betterment. Nd
consequently other prob of inflation nd mismatch of demand and supply shud to prevented. As excess supply of
money vil lead to aggravation of othr problems nd nt serve d purpose so balance must be maintained.
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Shibli said: (Wed, Jul 13, 2011 11:18:27 PM)

Pumping money by goverment, yes it is the liability of the goverment, but it is not a ultimate solution for the
economic crisis. It is like investing money in to a dying business. At the same time you pumping money to the crisis
same time have to look for the cause of crisis and it has to be rectified.
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Sweety said: (Fri, Jul 1, 2011 09:06:46 AM)

Yes I partially agree with the topic "GOVT. PUMPING MONEY IS NOT THE SOLUTION FOR ECONOMIC PROBLEMS".
I don't say govt should not spend money on economic problems, it should but it should be in such a way that it is
beneficial for all in great extent.
->Goverment should be able to find the economic problems and it should spend money on it and should see that
problem is solved. I mean to say that govt should spend the money and also should monitor thatwhether the
problem is solved or not.
->Government should spend the money in villages where there are no proper roads, no current facilities and help
the children to make them study.
->Now a days many government hospitals are not provided with the necessary requirements. Government should
spend money on them as it is very much required for poor people who don't have money for their treatment in
private hospitals.

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private hospitals.

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

->Goverment should see that the most common economic problems like increse in petrol prices, commodities
should be reduced.
->Government should provide ways to eradicate unemployment problem.
->By doing this, There is no doubt that our country will become a developed country.
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Sukesh Kumar said: (Mon, Jun 13, 2011 02:12:57 AM)

Yes, pumping money is the economics not the solution of the econics.
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Pinki Shaw said: (Wed, May 25, 2011 01:12:31 PM)

To my mind pumping money into the economy is not the solution for our economic problems. Today there are so
many economic problems in our country like increase in prices of oil, food, increase in imports, unemployment
problems, increase in inflation rate. If more money are supplied in the economy it will make condition worse rather
than solving it. Government Should adopt adequate measures to solve economic problems rather printing new
notes and increase the supply to create this balance between supply and demand.
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Pawan said: (Sat, Mar 5, 2011 09:03:01 AM)

Yes my dear friend said correctly 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.
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Nitesh Ojha said: (Thu, Aug 12, 2010 07:50:53 AM)

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.
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