Chapter 6
Flaw in Economic theories
(4) Can a nation allow Pseudo wealth produced?
To get a better idea about pseudo Products & wealth, read the free ebook: Anatomy of Economy.
Both developing and developed countries have large number of Pseudo Products. These Pseudo Products lead to build-up of Pseudo Wealth.
What is Pseudo Product?
The analogy in the following paragraphs will common’s understanding of what is Pseudo Product and Pseudo wealth.
Milk vendors adulterates milk with water for increased profit. He adds a Pseudo Product called water and mix it with Milk a real product. The buyer has no way to separate milk and water, when delivered. The vendor makes huge profit with the addition of another product of very low to no value.
Such addition of pseudo products with real happens in several ways and in several places in our society.
Adulterated Grocery, the Pseudo God men in the society.
The addition of pseudo products to Real Products appear to be a quite old practice. A story from Ramayan a great eastern epic is given in the last part, titled Stories.
The list of Pseudo Products in our society is quite a few. Typical Pseudo Products are:
- Money
- Credit Cards
-Products of Stocks, Commodity and currency markets!
- Mutual funds
- Insurance Products
The Insurance products, especially in health care, for sure fill the coffers of corporates with tons of money. But that is detrimental to common man.
The middle class is made to believe several pseudo products are “savings” that grows with time. In inflationary economy like India, year after year, the value of money decreases.
In society like India there a nearly 60% people cannot afford to buy minimum nutritious food even with subsidies.
The health care will become out of the reach of common man.
One Story & lesson for life
The last Part of this book has a few stories, an email that would greatly help understanding the nature and effects of Pseudo Products.
For example the Monkey Story explains how the stocks are traded in Stock market.
The email from an American Citizen highlights the Politico-economic decision making that is detrimental to the society. The task of Production – Distribution – Consumption should not be Out-sourced to another society. This happens when the corporates who calls the shots in any society seeks to maximize their profits, unmindful of its consequences.
The problem with Pseudo Products is it, it grows faster in society of greedy & foolish citizen.