One-hundred people own the same One-hundred rupees. Confused? Read along. This, however, isn’t supported by immaculate data but simple amateurish observations.
You earn a hundred rupees after a hard day’s/hour’s/minute’s/whatever’s labor.. (Hundred bucks since we don’t want to complicate an already seemingly complicated topic) So… You’re happy you made a century with money… and you go jovially to the bank and deposit your hard-earned bucks expecting interest off them. Now. The bank promises you an 8-10 odd percent of interest. But ever wondered where the hell do they (the banks) manage to make a 15% cut (I mean, they too need to earn right?) off your and thousands of others’ similar hundred bucks? Right? So, they loan your hundred bucks off to another party at 15% interest. Now, if this party is paying a 15% interest on the loaned principle, they too need to make their buck right? They too need to make profit! Which means they need to earn at least a 20% on that hundred bucks (which is yours, mind you) so as to run their enterprises! Now if they need to do that, they need to pass it off to another further party at a higher rate of return. So you get the picture. This chain is endless. And, notice! At the same time. You own that 100 rupees. The bank owns that 100 rupees. The party owns that 100 rupees. The further-party owns that 100 rupees. And so on, till wherever the chain runs to! Woah! Hard to digest? Well, here comes more!
The government taxes you on your hundred bucks. Ok. The government taxes the bank on the bank’s net asset value (which includes your hundred bucks and those of several thousands of people). The government taxes the people who take money on loan from the banks. The government taxes everybody in the friggin chain! So where the government should have earned a modest 30% (max) or 30 bucks on a 100 rupees. It is making thousands of bucks on the same, your hundred rupees. In reality, there is only a hundred rupees. But due to such woven complicated chains, we have inflated the country’s wealth. Which is why, perhaps, we’re looking forward to plunging in abysmally high rates of inflation in the future. Which is why, perhaps, we’re sitting on such high fiscal deficits. Which is why, perhaps, the rich are getting richer, and the poor are getting poorer. And so on.
To sum it all up. In reality, there is only a hundred rupees existing. But due to this network of unending economic on-paper chains, the same hundred rupees is owned by a hundred people which makes it an astounding ten-thousand bucks! You understand the deficit, right?
This might seem highly opinionated and unnecessarily blasphemous. Comments are welcome.