JOHN MAYNARD KEYNES
Why a proposed ¡®robot tax¡¯ could kill tech innovation, impede growth and complicate tax system
On the face of it, a robot tax sounds appealing. This perspective suggests that as robots take over human jobs, a tax could mitigate job losses, provide funding for retraining programmes and support social safety nets, thus preventing the widening of the wealth gap and inequalities. But won't job loss due to AI be a transitory phenomenon in the long run?
India's economic growth masks deepening income inequality & sectoral disparities
The Indian economy is experiencing robust GDP growth, macroeconomic stability, and significant foreign capital inflows. However, there is a stark disparity in growth rates between the top 20% and the rest of the population. Despite a GDP growth rate of 8% for FY24, domestic consumption growth remains sluggish at 4%, highlighting income inequality as the wealthiest 20% accumulate 92% of the country's savings.
Capitalism hasn¡¯t failed ¡ª we¡¯ve actually greatly benefited from freer market
Schumpeterians believe that government attempts to help, help and help again are the root cause of all that has gone wrong. They link this to declining GDP growth, angst among workers that 'decent jobs' are disappearing, rising inequalities, a soaring number of billionaires, rising inflation, crazy stock market valuations, Trumpist populism, protectionism and soaring fiscal deficits.
A matter of interest. When rates don¡¯t deliver
repo rate has remained well above the recorded inflation rate for most parts of the last two years, so If high interest rates could tame the present inflation, logically it should have been tamed by now. What if a recalcitrant inflation is signaling to us that we are using the wrong tool?
View: The one thing that can slow AI's breakneck speed
Promoters of AI sell hope and assurance like previous revolutions. AI may make labor functions redundant, lead to reduced work hours, and render developers/champions unnecessary. Investments in human-like robots and hiring freezes indicate a possible future of RHRP.
For entrepreneurs and investors, market capitalisation, more than GDP data, is what matters
The exuberance of Indian stock markets is well-timed when it comes to confidence, the all-important ingredient of economic growth. In the last few years, the rapid growth of the Indian startup sector spread optimism among the wider business community. During 2020-22, when the economy was roiled by Covid and consequent lockdowns, the rise in the number of unicorns at a fast clip did much to spread cheer - and some jealousy - in the business community.
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The multiplier effect of hosting Olympics may be exaggerated, but it can provide many intangible benefits
The hosting of Olympic Games holds a certain allure for many countries due to a myriad of intangible benefits like global visibility, national pride and cultural exchange, which often precede the tangible, more measurable economic impacts. While the construction of new infrastructure and potential boost in tourism and international investment can be significant, the crucial question remains whether these economic advantages justify the enormous investments required.
Lessons for market participants: Diversify your investments & hire a good risk manager
'The markets can remain irrational longer than you can remain solvent,' goes a quote attributed to John Maynard Keynes. But the market is the final arbiter of value. Lehman Brothers had $600 billion in assets when it filed for bankruptcy in 2008. But a lot of those assets had no liquid market. Lehman valued them based on esoteric models that were too optimistic in their assumptions, and they didn't hold up when the markets turned.
Why a better distribution of global power would suit India, and the developing world
The US economy accounts for 25% of global output, China's 20%. China is now a bigger creditor to developing countries than the US. For all its economic heft, China remains a minnow in global financial markets. One reason is China's reluctance to commit the renminbi to full convertibility on the capital account. The more fundamental one is the upper hand the US had in the 1944 Bretton Woods conference that set up the post-World War 2 global financial order, in which the dollar was assigned the role of the world's reserve currency, overriding British negotiator John Maynard Keynes' suggestion to create a new bancor to settle international balance of payments.
Hunting for 'growth' at a reasonable price? Consider these 10 stocks
ICICI Securities identified 10 stocks, which fall into 'value-creating growth' category, where there is a hint of outperformance in the recent past, earnings momentum stays intact, estimated FY24 return on equity (RoE) is greater than their ¡®cost of equity¡¯ and where operating cash flow generation is robust.
View: The confusing case of India's GDP data
Welcome to the world of Indian real time statistics. It is nothing short of mind-boggling, keeping economists and statisticians awake for two full months. We need to simplify everything and not have a plethora of estimates that confuse. The sequencing of data is important. Why not have the RE for FY2021 first and then the AE for FY22? The latter is needed to ensure that the budget has a chronological basis.
FM urges industry to unleash animal spirits; make India fastest growing economy
Speaking to industry leaders at an All India Management Association (AIMA) event, she said the government has taken several steps including reduction in corporate tax rate to facilitate investment.
Festival of Lights fails to revive India¡¯s sullen animal spirits
Poor reading in all key markers signals a protracted slowdown, and may influence the RBI to cut rates more.
The collapse of PMC exposes the fault lines in the financial system
Co-operative banks cater to a larger swathe of population & yet largely escape active supervision of RBI.
View: GDP is a flawed way of figuring out how well a country is doing, but it matters
There are many things wrong with GDP but it also measures the economic performance of a govt.
Central banks giving much-needed boost to gold demand
The Russian Central Bank for six consecutive years has bought gold as it continues to diversify away from US dollars.
Economic Survey 2018: Sunny Deol brushes biceps with Shakespeare in an effort to reach masses
Novelists and celebrated economists dug out some catchy quotes to articulate key issues facing the Indian economy.
GDP can decline by 2 percentage points, says Manmohan Singh
Equating demonetisation with ¡°organised loot and legalised plunder of the common people¡±, Singh said ¡°what has been done can weaken and erode our peoples¡¯ confidence in the currency system and in the banking system¡±.
RTI reveals Congress-ruled states were in favour of amendments to Land Bill
Former rural development minister Jairam Ramesh quoted the economist John Maynard Keynes and said, ¡°When facts change, I change my mind.¡±
A question that haunts the US middle class: What happens when the robots come for their jobs?
The Middle Class Easing this maladjustment for the middle class is likely to become one of the central public-policy challenges of our time.
Om Namah Volume
¡°In the long run we are all dead,¡± John Maynard Keynes once said. Poker players are tormented by this truth. To a far greater extent than in other sports.
No magic wand: Why GDP growth may not exceed 5.5% in FY-15
NSS data for 2011-12 shows employment stagnates when growth tapers off. If poor households spend on education, there are expectations of better jobs, outside farming.
The abuses of history: Lessons for the future
A study of history may be needed precisely to unlearn the effects that history has on us. History can mould us unconsciously in dangerous ways.
Changing words character in changing market demands
Once shanghaied into alternative roles, prolonged, innovative (mis)use of words can literally change their character.
American economic recovery is still a big myth
US economic recovery will take longer than we currently envisage. Recent downward revisions in US GDP data and retail sales foretell delayed recovery.
Negotiating treacherous financial markets requires more semantics than economics
Bernanke also has to manage constituencies within the Fed and foreign nations concerned about the impact of US policies on their economies.
In macroeconomics ideas are more powerful than facts
The other is new work from the IMF on the relationship between inflation and unemployment.
Financing US debt: Foreign buyers may have to rethink their positions as dollar loses value
US is now deploying its FMDs, ¡®financial extortion¡¯, ¡®monetisation¡¯ and ¡®devaluation,¡¯ to finance its requirements.
RBI must march in step with the government & lower long-term interest rates
The central bank must march in step with the government and lower long-term interest rates for domestic industry to spur investment and growth
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