Keep Money Rolling
Shrii Sarkar says, the value of money increases with its mobility. The moreit changes hands, the greater its economic value. If it lies unutilized, itsvalue is nil. This, Sarkar says, is the most fundamental principle of economics.
by Shrii Prabhat Ranjan Sarkar You might have noticed that there are many countries which suffer from financialstringency, so they take loans from other countries. These loans are then usedfor ventures like constructing large dams on their rivers.The science of economics teaches that the rolling of money should never beblocked by any sort of non-productive investment. Sometimes people misuseloans to construct an unnecessary building or a new showroom for their business, and thus prevent the possibility of reinvesting the capital andincreasing their wealth. Economics teaches that loans taken for businessinvestment should always be utilized for productive purposes, and should never be utilized in any unproductive venture. Foreign loans, for example, should never be invested in constructing large railway stations instead of railway lines.The value of money increases with its mobility. That is, the more that moneychanges hands, the greater its economic value. On the other hand, the more thatmoney is kept immobile in a safe, the more it loses its utility, and thus itseconomic value decreases. This is the most fundamental principle of economics.The banking system is indispensable for promoting both collective welfare andthe all-round economic advancement of people. The maxim, "Keep moneyrolling," is as true as the proverb, "Keep the wagons moving."The banking system must be vigilant about two important points. First, theintrinsic demonic greed of the banks must not be allowed to jeopardize the life of the common people. In the past in most countries of the world the banksthreatened the life of the common people. This more or less still occurs today notonly in undeveloped countries, but also in developing and developed countries.Secondly, the banks must not allow unwise administrators or governments toprint monetary notes indiscriminately without reserving the proportionate amountof bullion in their treasuries.The first defect not only ruins low and middle income groups, but alsoimpoverishes wealthy people. The second defect destroys the very life of society.It leads to widespread inflation, which in turn jeopardizes internal trade andcommerce as well as foreign trade and barter. Even if there is abundantproduction in a country, the common people do not benefit. The rich becomericher and get more scope to continue their merciless exploitation. In state
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