The Anatomy of Economy
By N. Natarajan
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Stories are great help for remembering important concepts. I will give stories for most important concepts.
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N.Natarajan
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The Anatomy of Economy - N. Natarajan
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Anatomy of Economy
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N. Natarajan
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Table of Contents
PART I
Chapter 1
Chapter 2
Chapter 3
PART II
Chapter 4
PART III
Chapter 5
Chapter 6
PART III
Chapter 7
Conclusion
N.Natarajan
Stories are Great help!
Stories are great help for remembering important concepts. I will give stories for most important concepts.
You will find quite a few stories in this book. They are meant to help readers in retain the concepts. provided in this book
PART I
Introduction
Economics is not a science like Nuclear Physics.
Everyone can understand it.
Economics is an easy to understand subject. What is taught in universities today is not the core economic theories relevant to the society. They no more than a simple plot by knowledgeable elite against people with ability to gather knowledge, the common man.
Unless the common man understand eco- nomics and the politics associated with it, the poverty and economic crisis will continue for ever.
The economic crisis
In the past couple of decades the entire world is in the midst of Economic down turn. The start of the crisis can be traced to "Pseudo money".
The Economic down turn started more than two decades ago continues even today and reflects in every society, but is different ways. The unemployment, social unrest and even terrorism can be traced to the Economic crisis.
Even after two decades of the downturn, there is no solution found for this crisis. On the contrary, the problem is getting deeper.
Poverty not justified
Technology has enabled faster and higher volume of production of Good and services. Yet, the majority of the people are in extreme poverty.
The leaders of political parties talk about poverty during election campaigns. Promise the poor of better days after they come to power. Leaders come and leaders go. There were tall leaders who fixed even the year to eradicate the poverty. But the poverty remains for ever. If there is an action on the ground that is merely symbolic. But, till the next elections no one speak or does anything to mitigate poverty.
Economists have no clue!
The leaders have no clue about economics is not a surprise. Even the economic wiz-kids from worlds leading economic schools also have no clue to solve the problem, in the last couple of decades.
Solution
Then who is left to solve the Economic Crisis? The answer is: The common man
.
Common man, by definition, consisting of Poor and middle class. They have far less skills required to manage their own achieve something that the most powerful leaders and problems. How can they address what economic scholars trained in the world’s leading economic schools failed to achieve?
(1) Common men are the worst affected. Suffering makes one wiser.
(2) There is no one else who can do it.
N Natarajan Bangaluru
Chapter 1
The Natural & The Managed
Economies VS Natural Economy:
Individuals, or small communities decide what to produce and where to produce and where to distribute their products and services.
The people is not constrained by the decision of a few leaders on what to produce, to whom to distribute and who would consume.
The the three tasks of economy namely (1) Production, (2) Consumption (3) Distribution are shared between the people that provides the people an occupation so as to own wealth and ability to buy goods to consume.
In a Natural Economy, none of these three tasks are not taken away from one society to another.
When it is done, people would be deprived of occupation. That would leave people without wealth to buy the Products to Consume.
More importantly, the wealth generated by the society remains largely within the society.
Managed Economy:
There are a few common issues that encompass the entire society that needs a focused attention.
Such issues can be addressed in smaller societies without dedicated people and specialized skills,.
In larger societies need dedicated people, with larger resources and specialized skills. Such issues are:
1. Securing nation’s borders of the society.
2. Scientific & Technological advancement of the society to match other societies around. Failing to do so, the developed societes might exploit those lagging behind.
3. Creating common infrastructure for the entire society,
4. Fair distribution of wealth. Responsibility of the managers of the Managed societies is to ensure that the Nation’s wealth Shared among the citizen, equitably.
Governments, by co-opting the experts in various