Economics of the Common Man

Eco

In a world dominated by the learned economists, it is the common man who is said to know the least about economics. He does not know anything of Microeconomic vs. Macroeconomic Dynamics. He seldom has time to think about what is Deficit Financing. He is not aware of Fiscal Policy and its importance. This is because for the common man, these are not things with which he deals in daily life. One classical definition of Common Man is the “one who does not have a title”. Now, that is a very revealing definition though it is so short and sweet. Title is what differentiates a common man from the Special or Important Persons. In the Indian context there are several Titles which people aspire to get. And there are millions (perhaps a majority of the billion plus people of this country who do not get a Title. So, calling someone a common man is to tell one that he does not have a title. This also indirectly means that he does not have a right, strictly speaking, in legal terms. So a Common Man does not have a Title and as such no rights. Somehow, this looks more like the definition of a Slave, Isn’t it?

Now this common man bereft of title and rights has a huge set of responsibilities. The first one is to get adequately equipped to fight the unequal battle of life for himself and the family. Getting equipped involves staying away from life-threatening diseases, getting a set of skills enough to keep him employed throughout the year, in farming, in railway stations, in Mandis, in Brick Kilns and also keep the” People with Title” in good humour by offering free services, monetary and non-monetary bribes and on a regular interval by giving Votes. This common man is generally not fortunate enough to know when the Finance Minister is going to present the Budget in the Parliament though that very Parliament houses the People’s Representative who have been voted by him. He comes to know only the impact of the Budget when he goes to buy provision to the nearby Kirana. The Lala explains (and the Lala is also a Common Man, but slightly more enlightened by virtue of his Trade which he dare not call his Profession) to him that things have gone dearer due to Budget. He never gets to know the prospects of the Budget. That is the preserve of the Savvy Economists, the semi-literate herd called ‘Media’ (who shell out the memorized lines from the Economists and the Savvy Industrialists}. The most Common ‘Common Man’ does not even get to know who took the life changing decision that eventually compels him to terminate the education of his child, or the treatment of an ailing parent. He does not know the intricate calculations of the ‘Person with Title’ that annuls the plans of his daughter getting married. Life is a bad pitch for him where playing defensive becomes increasingly more difficult as the pitch gets queerer every time the ‘People with Title” put their heads together to “Improve the Condition of the Poor” in the Nation.

So, how does such a common man manage his economics? In a dynamically changing Price Scenario of the essentials of life he discovers with unbroken regularity that every succeeding day he is able to afford less of what he could afford yesterday. This happens despite the million social benefit schemes running for innumerable decades. The common process he follows is to take a stock of what money he has and what money he is likely to earn utilising his multifarious skills in the various part employments he is likely to get ( given that variables like weather, riots and foreign investments are favourable) . Based on such frail but compelling assumptions he plans what not to do in order to be able manage meals ( at least once, if not twice) for his family, education for his children, health for the family and situation permitting pay back some of the loans. A couple of marriages in the family and two meals a day get cut to one for a year or so.

It is in this background that a common man is unable to understand the concept of deficit financing. If the last economic unit of the Nation is not allowed the luxury of Deficit Financing , why should the Government be Allowed? When the common man does not get the angelic Investments to get a better House or a few more bighas of farm and get an opportunity of Working Hard to give a return to the investor rather than pay interest, Why should Government be gleeful when the foreign investment comes?

Common Man continues to live his life with an inelastic balance sheet when the Government and Industry ( Read ‘People with Title”) continue to leverage the benefits of elastic balance sheets with words as ornamental as ‘Liabilities’ and Lies as honest looking as “ Market-driven Economic Crisis” !

Note: Usage of the Word ‘Man’ In this article is not intended to exclude the “Woman” who is also common by way of not having a title and Rights!

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Shashank Chowdhury
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8 Comments

  1. A common man is cracking under the pressure,though he has not committed the sin.A simple man,as you have rightly pointed out,concerned about his two meals and managing his family budget but when he fails,he screems.You have nicely described the empathy of a common man.

  2. Shashank Chowdhury

    Thanks for the encouraging words.

  3. Loved the article. Its my economics.I have to do same thing to control expences and do saving also.I don’t know fiscal deficit nd all.Simple and made me understand.Pleasure to read such simple nd marvelous articles about common man
    At the end note is worth enjoying. Woman also

    1. Shashank Chowdhury

      Thanks for your comments. I am indeed very happy that I could strike a chord!

  4. Author very well explained how a common suffers even after so much hard work. Thanks for a wonderful blog.

    1. Shashank Chowdhury

      Thanks for the kind words.

  5. Very much right in defining “Common Man”.
    This is paradox of democracy that everyone works for this “Common Man” even then he gets nothing except misery, hunger, broken dreams & a blank tomorrow.
    One of the finest post ever published at Yug Vani.
    Regards

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