With the implementation of the New financial Model: there will be data of every single sale/purchase of small to big final goods/services through Unique customer numbers. Billing of every sale/purchase will become a necessity and the consumer will himself be interested in getting the bill for every purchase because he will get the incentive. With every transaction coming in white: there will be no invasion of taxes and the government’s taxes will rise multifold.
To solve the problems of present pension system, New Financial Model introduces a Universal Pension System in which there will be no burden on the governments and no individual & employer will have to contribute in any pension scheme for his/employees old age security.
In the present economic model, Demand and supply of money determines the rate of interest where Central banks control supply of money and Economic units demand the money for their short term and long term needs. When the supply of money is fixed then the real factors: cash/hoarding, saving and investment determines the rate of interest.
Transition to electric vehicles is the "Need of Hour", as the world is fighting climate change and high energy prices. Transport sector, which is one of the main contributors to greenhouse gas emissions and accounts for nearly 25%-30% of GHG emissions, is important to target. Oil-related fuels account for 90-95% of the energy used by transport sector.
New Financial Model introduces Concept of Future Money. Future money is basically a monetary incentive on the consumption to encourage consumption in short run. Presently, entrepreneurs give discounts to sell their products; Future money will replace discounts and provide no. of benefits to all the components of the economic unit.
To solve the problems of present pension system, New Financial Model introduces a Universal Pension System in which there will be no burden on the governments and no individual & employer will have to contribute in any pension scheme for his/employees old age security.
The Biggest problem of this system is that it is not universal in nature. It Reduces the private consumption, Reduces the profit margins of entrepreneurs and Increases the burden on government. Looking at the these points we must abandon this pension system.
New financial model proposes a very important change in the present income equation. In new income equation, income of $100 generates output of more than $100. Because of the consumption multiplier, more value is being added on both sides: consumption as well as investment in the economic unit.
Any policy/law/tax for distribution of his wealth or increase in wages will only discourage the entrepreneurs; will decrease the entrepreneurship/investment activity and will increase the unemployment. If someone is wealthy because of his/his ancestors’ entrepreneur skill because he was/is able to sell his products, he has the right to get profit.
It’s not the time to write details on how the crisis hit the door, but to find solution and think that how it can be shortened, dealt and how to recover quickly from it. Following can be the measures which the authorities can take to handle the current crisis: Communication with the People, Resolve the Fuel shortage and Power crisis at priority, Implement New Financial Model, National Emergency Fund etc. Read the full article.....
Nearly 80% (477487) of total inhabited villages in India, has population less than 2,000 and 41.8% (348722363) of total village population lives in them. If we analyze, 80% of the Indian villages are not viable economic units in today’s time due to very less population size. I recommend having a policy of minimum size of an economic unit and target to have minimum 5 to 10 thousands population in all Indian villages by 2050.
We have the cases where zero or near-zero interest rates fail to increase the inflation in the economic units. The proposed financial model will give a new tool to monetary authorities. New Financial Tool can be used along with interest rates to increase the aggregate demand in the economic unit during low growth period and generate the employment in the inflationary period as well.
In the present financial model, increase in interest rate reduces the investment and consumption in the economic system. So moderation or reduction in economic growth and employment is obvious. This problem can be solved by the New Financial Model, in which specific sectors can be targeted for the growth and employment even in the high interest rate period
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