Poverty Line by N.நடராஜன் - HTML preview

What make some people rich?

Not many are away how  some people who were poor became rich. Let us get through some of the articles in Internet pages.

The following article provides some information about India’s rich and poor.

http://timesofindia.indiatimes.com/business/india-business/indias-rising-income-inequality-richest-1-own-58-of-total-wealth/articleshow/56586277.cms

Why not the poor follow “what rich do”?

If poor follow the rich, then the society will perish in no time!

The rich is not capable of producing either primary products or services, essential for the survival of the society. If they produce, they would become poor.

1. Rich are capable of producing only Secondary Products (Example wheat flour, biscuits,  Semiya, fruit juices, pickles, ice creams food products).  If someone from Rich produce primary products like rice and wheat, fruits and vegetables they would turn poor.
2. Production of Secondary products need huge investment in Electrical power  technology machinery and fewer skilled people. Poor do not have sufficient access to any of them.
3. Primary products, in sharp contrast, calls of hard physical  work and involves risks from the vagaries of nature. Also that the primary products has long time to produce gives very low profit margins. Secondary products are quick to produce with huge profit margins negligible risk.
4. The Elites produce Pseudo wealth:  The crooks in modern societies  have invented several ways of producing Pseudo money and enriched themselves. This is a major reason for poverty among common man is very huge.

Such products and services offered by elite are redundant. They are non-essential for sustenance of any society. If poor emulate elite, the society will die out of starvation.

Close your eyes and imagine, a situation where every elite vanish into another country for a  year or more ? Can anything go wrong in that society. Nothing.

Imagine the opposite. What if, all common man including middle income class vanish for a few months, the elite consisting of Leaders, Rich and Super rich stays back!

They would crumble and perish.

Riches businessmen and industrialist, appear :

Not paying back the loans

Not paying an interest and capital barrowed from Banks.

Most such loans are written-off and called non-performing assets,

RBI lends Banks and banks lends its clients. The RBI has the funds (monetising GDP) that is being lent to various clients to the extent.

As of last financial year, Rs 80,000 Lakh Crores are is given mostly to Large business and industrial houses of  if it collects even 2% interest, the RBI and Central Govt should receive annually

Poor and middle class— identified as Common man .

Have very limited access.

Pay their capital and interests religiously.

The loan recovery process, is not applied to large barrowers

Secondary producers:

a) buy from the original producers the primary products at a beaten down price. They misuse the ignorance of common man and lack-of financial support for farming activities.

b) The products are hoarded in large storages /cold-storages with the approval of the government, to sell at many fold prices to consumers.

c) They create artificial demand-supply gap and Use Commodity market swing prices in their favour.

d) Then they package the hoarded primary products and sell in the market at huge prices.

e) Make very huge profits. 

f) They import these essential commodities at very low prices (Example: Pulses from Africa is imported at about Rs 30 to Rs 40  and spend about 15 paise per kilogram, as shipping cost) and sell at Rs 200 to Rs250 to consumers in India.

g) They are behind every pseudo financial  products such as MF and Insurance, in connivance with other elites who runs the national affairs.

These are harmful to the entire nation and an effective tool to corner the entire nation’s worth and siphon-off to other economic destinations.