Why Is the Indian Economy Tanking? What Went Wrong?
Mukesh Devrari The problem of the lack of capital in third-world countries is not new. The science of economic development is not very difficult to understand. Economic activity requires a high level of consumption. It is a loop that feeds on itself. The more people demand various consumer goods, the more industries will work to produce them. The more people are involved in the production process, the more jobs are created in those industries. Those workers also earn income and demand many more goods and services. Let us say five million people are directly involved in the manufacturing of internal combustion engines for various vehicles. They will all consume clothes, food, entertainment, and other products. Many more people will gain employment in those industries. It is not a perfect structure. Some people at the bottom of the pyramid will always struggle. However, much also depends on governance. Iran, despite many sanctions, is a relatively well-managed country. People generally h...