PoorNoMore — ஏழைகளே இல்லாத உலகம்

What is an economy? What is to be measured? If it is not about the livelihood of the entire population, why should it be even measured and valued? If it is not about the economic status of the entire mass of people, including the living status of the last person, why should it be a national number? We were living through decades of scarcity. Now, for more than a decade, we are living with surplus - much more than the needs of the global population, the world is producing now. Most importantly, we're entering the era of mass production by AI-driven machines. If nearly 85% of the global population, including most of the countries except few, are deprived of a dignified life, what is the point of all these measurements modern economy is enamored of - GDP, Debt, Deficit, Fiscal Prudence? If a single person is left out by this measure, GDP, then why should he be forced to be part of the GDP-Economy? If we live through global or national scarcity, then at least rationing is ok, but...

Dr Rajan has identified many of India's economic problems with great clarity as usual. The important question is whether the solutions he proposes adequately address the underlying constraints. His stature as a former RBI Governor, distinguished academic and long-time participant in India's economic policy debate makes his latest Frontline interview particularly important. His diagnosis draws serious engagement - not least because some of his conclusions point towards questions that the conventional economic framework has not adequately resolved. There is one proposition on which we should disagree at the outset. Let China Be the Manufacturing Behemoth The suggestion that India should hesitate to pursue manufacturing because China has already become the world's manufacturing giant reflects a legacy economic mindset emanating from a reserves-constrained monetary regime . There is no economic rule that says only one country can build large-scale productive capacity. Le...

Why do modern economies readily create enormous amounts of credit money, yet hesitate to use sovereign currency power directly to mobilise the real resources needed to eliminate poverty and build prosperity? Modern economies have become extraordinarily comfortable with money creation. Not with government money creation. With credit-money creation on a gigantic scale. Every time a bank makes a loan and credits the borrower's account, new deposit money is created. This is not a marginal feature of the monetary system. It is one of the principal ways money is created in modern economies (https://www.bankofengland.co.uk/explainers/how-is-money-created). The scale is enormous. Credit-Money Machine India's banking system has already demonstrated an extraordinary capacity to create and support money through credit. As of July 2026, outstanding total bank credit stood at about ₹220 trillions. Total credit to the commercial sector from all sources was about ₹323 trillions. At t...