Economic Well-being By CA Rupin Patchigar

Economy is not only confined to financial transaction or turnover of the Trade or the quantum of production. It has a wider connotation. Generally we measure the economy by GDP (Gross Domestic Product) or GNP (Gross National Product). Gross Domestic Product measures the value of goods and services produced by the nation. But it is not enough. Health of human being is equally important as health of the wealth. Finance and wealth are very important to nourish the life, but at the same time healthy body is a requirement of social economy. Happiness, welfare and standard of living of a citizen are very important measure for deciding the Economic Well-being.

Whether people are happily living ? Whether the finance available in their hands are sufficient enough to cater his family ? Whether the standard of living is good enough ? These are the questions to be addressed for deciding the Economic Well-being.

Activities of Trade, Industry and Employment do generates the GDP, but to generate happiness in the economy there are various factors. They are as under :

(a)     Happiness :

Happiness is a buzz word in social economy. If a person is earning enough amount to nourish his family, he is a happy person. That happiness will spread over the society. That will lead to healthy society.

(b)    Secured Investments :

Now let us think about the person who has income more than his requirement. In that case there is a saving. The said saved amount, he would like to invest either in Bank, Financial Institute, Capital Market, Mutual Fund etc. The Return on Investment plays very important roll in investment. A person will try to invest with an eye on higher Return on Investment. But the most important point is about the safety of the fund. Return on Investment and safety of fund invested are two important factors, should be considered while investing the fund. Then and then only the happiness will survive. If a greedy person goes for more Return on Investment, he may loose the entire fund.

It seems that even the investments in Bank FD are also not safe. The issue of “Yes Bank” has raised number of questions in the management of Private Sector Banks and the control of RBI. RBI should have information regarding the utilization of the fund by the Bank and regarding its safety. Any Director or his related party or the shell company of the Director should not be allowed to take loan from the Bank. Each and every amount of the customer’s fund should be properly utilized. The Bank must earn enough income to pay the interest amount to the customers. Economic Well-being depends on the ethics of the Bankers, their employees and their fare and transparent administration. The administrator should follow the principle of trusteeship.

(c)     Caring Society :

Even today certain percentage of population are living below the poverty line. Poverty is stigmatizing the society. Poor are deprived of better food, clothing, shelter, medical care, Education and life expectancy. If the society is            co-operative and caring, it will satisfy the need of the poor person. And that will result into Economic Well-being.

(d)     Happiness Index :

There are five economic indicators, such as Inflation, Employments, Housing, Spending and Confidence. However these indicators will give a picture of financial status of the society but the real indicator is Happiness Index. It is an old saying that ‘Health is Wealth’. The happiness is much more important then wealth. One has to, therefore, ask the various questions such as,  whether peoples are happily living with their earnings ? Whether the money available in their hand is sufficient enough to live a reasonable life ? Whether their investments are safe ? A person can judge the Economy by Capital Index, Consumer Index, Wholesale Price Index, Inflation Index etc. But the  Happiness Index is much more important, than any other indicator to judge  the Social Economy and Economic Well-being.

(e)     Gap between Rich and Poor :

It is reported that almost 90% of the wealth is in the hands of  5% of the population of the country. This is an alarming situation. The gap between poor class and middle class should be reduced otherwise it will lead to riots and agitation. The gap between Middle Class and Upper Middle Class should also be reduced. The Balanced and constant growth of the various section of the society is must for the Economic Well-being.

(f)      Positive Attitude :

Risk is part of life. Business or otherwise one has to take the risk every day. However the calculated risk in every sector with positive attitude by a person will lead to success. And the success brings confidence and happiness.

Positive attitude of the people will also add the positive degree of Economic Well-being. The Trade, Industry and Employment works together in               co-operation of each other for the better society, will create positive environment of the economy. Let us co-operate with people to bring in happiness amongst all the section of the society. It will make India an Economic Well-being Country.

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