A Cow based Economics Lesson

This is just Superb. I always had troubles in understanding different types of economic systems. They always confused me or gave me forty winks but recently I was surfing the web when I found this article. The second I lay my eyes on it, I knew I had to share it with all and make the world a merry place for mankind to exchange knowledge. A simple way of understanding the different Economies by an apt description of  ‘TWO COW’ theory. Way to go!!!

 

SOCIALISM
You have 2 cows.
You give one to your neighbor.

COMMUNISM
You have 2 cows.
The State takes both and gives you some milk.

FASCISM
You have 2 cows.
The State takes both and sells you some milk.

NAZISM
You have 2 cows.
The State takes both and shoots you.

BUREAUCRATISM
You have 2 cows.
The State takes both, shoots one, milks the other, and then throws the milk away.

TRADITIONAL CAPITALISM
You have two cows.
You sell one and buy a bull.
Your herd multiplies, and the economy grows.
You sell them and retire on the income.

ROYAL BANK OF SCOTLAND (VENTURE) CAPITALISM
You have two cows.
You sell three of them to your publicly listed company, using letters of credit opened by your brother-in-law at the bank, then execute a debt/equity swap with an associated general offer so that you get all four cows back, with a tax exemption for five cows.
The milk rights of the six cows are transferred via an intermediary to a Cayman Island Company secretly owned by the majority shareholder who sells the rights to all seven cows back to your listed company.
The annual report says the company owns eight cows, with an option on one more.
You sell one cow to buy a new president of the United States , leaving you with nine cows.
No balance sheet provided with the release.
The public then buys your bull.

SURREALISM
You have two giraffes.
The government requires you to take harmonica lessons.

AN AMERICAN CORPORATION
You have two cows.
You sell one, and force the other to produce the milk of four cows.
Later, you hire a consultant to analyze why the cow has dropped dead.

A FRENCH CORPORATION
You have two cows.
You go on strike, organize a riot, and block the roads, because you
want three cows.

A JAPANESE CORPORATION
You have two cows.
You redesign them so they are one-tenth the size of an ordinary cow and produce twenty times the milk.
You then create a clever cow cartoon image called a Cowkimona and market it worldwide.

AN ITALIAN CORPORATION
You have two cows, but you don’t know where they are.
You decide to have lunch.

A SWISS CORPORATION
You have 5000 cows. None of them belong to you.
You charge the owners for storing them.

A CHINESE CORPORATION
You have two cows.
You have 300 people milking them.
You claim that you have full employment, and high bovine productivity.
You arrest the newsman who reported the real situation.

AN INDIAN CORPORATION
You have two cows.
You worship them.

A BRITISH CORPORATION
You have two cows.
Both are mad.

AN IRAQI CORPORATION
Everyone thinks you have lots of cows.
You tell them that you have none.
No-one believes you, so they bomb the ** out of you and invade your country.
You still have no cows, but at least you are now a Democracy.

AN AUSTRALIAN CORPORATION
You have two cows.
Business seems pretty good.
You close the office and go for a few beers to celebrate.

A NEW ZEALAND CORPORATION
You have two cows.
The one on the left looks very attractive.

 

Post courtesy (Sam Aminisam)

Inflation revisited: a confusing chapter from Economics and it’s remedies

Hello everyone, today we discuss modern India’s Economic crunch with the reference of inflation. The Financial shift in India’s Gross Domestic Product(GDP) as claimed by the white collar babus, burning several liters of fuel in age-old Ambassadors mostly confuses us rather than settling us with a straight answer. The fact remains, India is a growing economy even though the time required for India to make decisions are long enough for toddlers to step into college. The ultimate questions, “Slow but steady, How is India growing?” is to some extent answered in Rama Bijapurkar’s ‘We are like that only’.

Let us start with an example, You earn an Income which is then divided in two segments: Savings(s) or investments(I) and Expenditure(e) or consumption(c).Hence considering the Income(y) for Government, it would be a submission of the entire Savings and Consumption of the country. Therefore y = s + c, However there is some editing to this equation. The money that is saved in Banks, or invested in shares and stocks or any other mode is then invested by Banks, Government or some other body in other programs. This Investments are mostly loaned to industries for increasing the production of Finished goods and there is an increases in consumption. Hence with increase in Savings(s), consumption(c) increases as well.

The GDP which is defined as the total production of goods and service produced in the country for that year is affected tremendously every year. Moreover, Imports and exports play an important role in shaping the country’s GDP. The anti-social elements like Corruption and Bribery cause a leakage in the income and saving structure of the country. Based on the amount collected in the Government’s kitty, which is the RBI- Reserve Bank of India, the Government further plans the Fiscal and monetary policies for the country.

Inflation: The traditional definition states that when Income of the country grows eventually with the growth in the prices of the commodities, steadily over a period of time is known as Inflation. However when the prices increases and income is unchanged or commodities price remain the same with fall in income causes commotion in the masses. This economic rift created is major reasons for erosion in the purchasing power of money. The unemployment increases due to cost cutting and again the GDP decreases.

To tackle such a brouhaha, simple steps maintain your economic standards even when the market is unstable.

Investment in Gold: It is observed that the day you plan to make an investment in gold, it is the cheapest that day. Buy gold when the market is facing a lull as the price of gold has never seen a steep slope but always has been on an upward swing.

Secure investments in the Growing Sectors: Plan a to-do list for investment and consult an expert. The low risk companies in growing sector in recent times for example Pharmaceutical or telecommunications or etc. are secure to invest with options like mutual funds or stock options.

The Growth plans by Banks may also fall in this secure category however the returns are not high.