“We are on the verge of recession…” “No it’s not a recession , it’s a slow down..” “The economy is bad..” We often hear these words all around us. Everyone has an opinion about cricket, politics and economics in our country. But do we know what economics is? Do we know what co-relation economics has in our day to day life. Here is an interesting little book “IIMA-Day To Day Economics” written by Professor Satish Y. Deodhar of the Indian Institute of Management Ahmedabad.
Right from the page one the book takes us through a joyride linking unknown dots, which connect us to economics. Not to mention that it offers a rather insightful view on the Indian Diaspora .
It begins with Tony Morrison’s famous quote , “If there’s a book you really want to read but it hasn’t been written yet , then you must write it”. Within no time it captivates you with simple questions about day to day life, and before you can realise it, you are engrossed into the book . Chapter one explains the medley of the government and private sector . It tries to find answers to questions like why defence services are provided only by governments and why postal stamps are still provided only by them? Why is the private sector not allowed in these markets ? Why is the private sector allowed to supply bottled drinking water but not allowed to set up their own network of pipes to supply water to the entire city ..very interesting information indeed !
Chapter two begins with a quote of Kalidas , “the state collects tax for the greater welfare of its citizens in the same way as the sun evaporates water only to return it manifold in the form of rain”. The chapter discusses the origin of the budget, types of expenditure/revenues of the government and a nice page is devoted to the eternally popular word “GDP”. This chapter also explains taxation in simple lucid language and you can’t resist the temptation to move to the next chapter which is on “money , banking and the stock market”.
A little old French proverb sets the tone . It says , “It is a wise man who lives with money in the bank, it is a fool who dies that way” and then the author takes us through a few very interesting pages on “what is money”. I bet you will start looking at the money in your wallet after reading these pages . A little history of the stock markets in India and the beautifully explained terms like CRR, Bank run , bullish markets , bearish markets make this chapter a must read .
And then the author takes us through a little complex but extremely important chapters around free trade, the world trade organisation, anatomy of inflation etc. As you finish reading these two chapters you actually start realising how inflation impacts your daily life. A ready reckoner at the end of each chapter revises the economic terms which were discussed in the chapter. What also makes the book interesting is the mention of some historical incidents to explain some of the important facts in Economics.
The “boom and burst phenomena” is a valued chapter as it takes reader into more complexities but again in a very simple language . Monetary policies are explained well and there is also a profound piece about unemployment rates. The seventh chapter , “unclaimed opulence” touches upon interesting topics like India’s socio political story . It explains how as a nation, India has not yet fully exploited her potential in terms of generating a higher standard of living for the average Indian.
The final chapter “ecologue” nicely sums up the purpose of the book. It actually equips you to understand , reflect and make informed decisions as and when you encounter new situations. It begins a a new journey for the reader as an everyday economist ..
A must read and a great gift to someone you love …..
P.S. – An Amazon affiliate link of the book can be found here.