Economists and Economic Problems

The world economic crisis continues. Economic growth happens but jobs are not created. Explanations by economists of economic crisis and jobless growth is lost in jargons and complex mathematics.


That economists can solve economic problems is a myth. That economists compound economic problems is a truth. Why do economists compound economic problems? The answer lies in their prescriptions. Increase government spending to boost economy and or increase government control to manipulate money supply, interest rates, and purchasing power of money. Most economists prescribing these measures to improve economy forget that government debt and taxes keeps on raising and money supply increases with no relation to the real economy. So, their prescription only compounds a country's economic problem and results in jobless economic growth.

In India since Narendra Modi came to power in 2014, he has been subject to extraordinary scrutiny and criticism. He has been criticized, without realizing that jobs can’t be created, for not creating enough jobs. But the truth is aspiring Indian never found enough jobs since 1947. An example will illustrate this truth. India created IITs but never created opportunities or jobs to use IIT graduates. This is the reason why so many IITians are not working in India. Any economy has to create opportunity for jobs.

 

Modi faces umpteen critics including Raghuram Rajan, former RBI governor, who are themselves clueless that jobs can’t be created or Government along with central banks like RBI can’t control the economy. India doesn't need Raghuram Rajan's or any economists' ambiguous prescriptions. India needs actionable ideas for jobs. India as a country lost a golden opportunity to create a foundation for an economy that will satisfy the ambitions of aspiring Indians for jobs in the period 1947-1977 when it was ruled by Congress with negligible opposition. No political party in any country in the world got the opportunity that the Congress got in India. But the opportunity was squandered. All of MODI’s critics including economists overlook this crucial point.

 

What is true for India is true for every country in the world. Each country's economy needs economists or policy experts as critics but on one condition. They should substantiate the criticism and offer actionable ideas which have not been tried before. Critics be they economists or policy experts should realise that finding solutions inside the source of the problem is no solution at all for economic problems.