World Economy Essay

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GLOBAL ECONOMY IN REVERSE GEAR TEAM MEMBERS: VEKU GAUDE (ROLL NO: E2010012) PREMNATH NAIK (ROLL NO: E2010033) SANDESH PAWAR (ROLL NO: E2010039) NAVESH SHIRODKAR (ROLL NO: E2010048) MANDAR SHIRSAT (ROLL NO: E2010049) VIRAJ NETRAVALKAR (ROLL NO: E2010051) PRICE SINGH ( ROLL NO: E2010052 ) The money needed by an individual to run his daily life should be less than the money he earns daily. Similarly the money needed by the businesses, large and small, and by the professionals and traders to run their activities should be less then the money they generate. Likewise the money needed by the government to run the national set-up should be less then the revenues available with them from taxation. When all the 3 above mentioned entities find that their earnings or the income is less then their expenditure or projected expenses it develops in a situation called as “deficit”. The right thing to do when trapped in such situation is to indulge in cost cutting, and to avoid the temptation of growth by debt. Looking at the picture of our global economy, the total production of all the final goods and services taking place within our global economy, the industrialized nations including USA and Japan with only 15% of the global population are contributing 70% of it. The other 30% of all the goods are and services taking place within our global economy , the emerging and poor backward nations including China and India with 85% of the global population add to the global economy. There are warnings of other bigger financial crises approaching and serious people are laughing. Sincere and earnest people concerned with important matters are making jokes of these warnings. This is because of the large number of the conflicting signals and

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