RETURNING THE FAVOUR

"On Thursday, police clashed with demonstrators as hundreds of thousands swamped the streets in Barcelona and other cities.          Unions said 800,000 people joined the protest in Barcelona. Police put the number at 80,000.  Some marchers in the city smashed windows and set rubbish bins alight.                                                                                   Police fired tear gas and shot rubber bullets at the ground, TV pictures showed."

This was what BBC reported about the latest protests in Spain.

"Frankfurt airport cancelled about 80 flights and said services would not be back to normal until Thursday.

The strike has also grounded 142 Lufthansa flights, mainly on domestic routes, with Stuttgart, Munich, Cologne and other airports hit.

Verdi is pushing for an 8% wage increase for its two million federal and local government workers."

Similar is the story now at Frankfurt the third busiest airport in Europe.

"SNPL had closed its garment unit in Biratnagar from June 15 citing insecurity following violent protests by the workers. 

The prolonged labour problem, according to the company management, forced the company to permanently close the garment unit." 

This is what happened at Surya Nepal earlier  as reported by Ekantipur.

So, the protests are not just a part of the Nepalese society but that of highly privileged European society as well. When strikes happens/ed in Nepal, and  foreign medias roll their camera in the street, we feel a sense of loss. We feel ashamed. We are made to look upon as fools who hardly know economics. The elites in the media ask the protestors with a quote of some billion of losses in a day!


 In one gloomy day for Nepal's sovereignty, the ambassadors of the superpowers united and shamelessly declared to slam a visa and fund embargo for people and organization that would call for a strike. Well, I would like to know what they are doing right now for the strikes in their own backyard.Ain't the cacophony of the worker's chant strong enough for them to realize protest can turn up even in a well-to-do "civilized" society?


We can be sure that the protestor's in Europe enjoy far more higher living standard compared to that of the workers in Surya Nepal. Yet an European diplomat will have enough courage to question the morality of the strike here at a Nepali enterprise. They would teach us to wear a black ribbon instead of burning off tyres. That's fair. However, protestor's action not only depends on their morality but also on their level of frustration. When we have nothing to lose, we resort to most violent and meanest way of protest to a level to which rarely a "suited and booted" diplomat in a blue number plated Land Rover reciprocates to.


Now, that the Europeans are feeling the heat of a hard recession, austerity measures have created unpopular sentiment in the continent ranging from Germany(the biggest lender of EU) to Greece(the total bankrupt).Everybody knows, cuts in benefits, social welfare, government jobs etc would lessen the burden in Economy. So, why are the civilized taking it to the streets torching dust bins? It is because of frustration, similar to that we are used to here at Nepal. The have the same hostility within as that we have towards our leaders, who have failed to leave up to their promises!


So, next time a foreigner pricks you about protesting for a valid reason, don't think twice to return them the favour! All of us know that one day when social equity and prosperity envelops Nepal, such act of random protests and strikes would gradually go away from our culture. Till then, protests and strike will act both as boon and curse for the welfare of us the Nepalese and an integral part of Nepal's yet to bloom democracy.

Why Can't Printing More Money Make Us Rich?

Since, my early childhood I wanted everyone to be rich. I was aghast to be forced by mom into a bus that had no vacant seats!I usually thought what if everybody could buy a car, nobody would be forced to cramp into a already jam packed bus! For that we need money, all of us need big money! Whoever printed money, Why wouldn't they print as much as for all of us to buy a Car?

Many of us might have been confused by the same thing but in different situations in different ways.

I  found the answer.It was not my curiosity that led me to the answer. It was a mere coincidence.

So why don't the FED publish more money to make us rich?

We had a course named Engineering Economics, this semester.Now that the exam was over and afternoons were filled with slots of regular load shedding, I had nothing to do!Then i caught up with my sister's book in Economics ( i just wanted to cross check what was the difference between ours and their way of economics) and I read its preface. Luckily the preface was so well composed that it drew me into its content."I believe that everyone should study the fundamental ideas that economics has to offer..... You will be glad that you studied economics"These lines would make me look into whatever it had between its cover.

The first chapter, that of Principal of Economics, would end the age old curiosity. The Ninth Principal is titled as "Prices rise when the Government Prints too much money"!

So let me explain it to you in simple terms. When government prints too much money, people will have much money but the number of goods available in market would be the same. Like all of us had 10 lakhs to buy a Maruti 800 but their would be the same number of Maruti 800 in the market. The industries due to its limitation cannot fulfill the supply. Hence a sort of competion begins between customers to buy the car which makes it a more scarce commodity. Hence, the price of the Maruti 800  would adjust (increase sharply).This is known as inflation. Again, all of us wouldn't be able to afford the car and the persons who where earlier incapable of riding a Maruti would still be the same!

So we came to know, why printing money would not make us rich! But you may again think why do then government acts crazy and prints too much money creating inflation. There is a reason for that as well.

Let me carry on from above example. When people have more money, they will try to spend it. So,  people will want more of Maruti 800. Though the company can't satisfy all of us, it shall surely increase its production to whatever level it could to reap benefits of increased sales. Hence,to increase production of cars the company must hire more workers. Thus the unemployment would go down. Thus Inflation and Unemployment are inversely proportional to each other in the short term. At least most of the economist believe in this theory!

So next time if you ask God for  trees that have money instead of leaves, that is not going to work if everyone of us could implant that tree.

(The book i was referring to is "Principles of Microeconomics",Mankiw,4th edition,Cengage Learning,Indian Edition)