Trend and Selection: The Economy Car Analogy

 

Trend and Selection The Economy Car Analogy

Trend and Selection: Core Economics

The Interest Rate Shock
You are eating a vada pav for 10 rupees from the stall below your building. If you order that same vada pav online, then after adding packaging costs, delivery costs, online advertising costs, website costs, and SEO costs, that vada pav may cost you 80 rupees. And if that vada pav seller has partnered with some brand, then along with the brand’s logo, the same vada pav may end up costing 580 rupees in total.”

Ganesh: There are three types of currency: goods exchange, valuable metal, and promise paper.
Ganesh: A milkman gives milk worth 30 rupees and takes rice worth 30 rupees from a shopkeeper. Exchanging rice for milk—this is goods exchange currency.
Ganesh: Raw materials cannot be saved for future transactions because they spoil जल्दी. Therefore, people started using valuable metals and property in exchange; this is called valuable metal currency. With metal currency, goods and services are purchased.
Ganesh: It is difficult to carry metal currency for small transactions in the market, so metal currency is kept in one place called a bank. The bank gives a paper stating that your metal value is deposited with them, and whenever you want to take that metal value, you can do so by showing this promise paper. Even the 10 rupees in your pocket is also a promise paper.
Ganesh: The era of mobile phones is beginning. It is possible that a number stored in a mobile’s memory card may be declared as currency; whoever has more numbers in their mobile would be richer. But there will be a problem in this—when the mobile is switched off, signals fail, or if someone deliberately shuts down the internet and makes the whole world dependent on them to get their money back, then a very big problem can arise. Do not become part of this currency; otherwise, someone may make you work hard for 10 years, show money as numbers in your mobile, and as soon as you leave the job or oppose their injustice, they can reset your phone in one second and make you bankrupt. To avoid becoming bankrupt, you may end up choosing to become a slave.
Ganesh: “Right now, you only have 20 rupees in your pocket, and even that you borrowed from your mother just to eat a vada pav. Do you really want to know about the budget?”
Kiran: “I heard words like economist and budget in the news, but I did not understand anything, so I want to know.”
Ganesh: “Today, just enjoy your vada pav. The day you become capable of paying taxes, I will explain the budget to you.”

Kiran: “Why are we charging higher interest to some customers and lower to others? It feels like injustice.”

Ganesh: “Why does your company give loans at all?”

Kiran: “To earn profit from interest.”

Ganesh: “Then why are you surprised by different interest rates? It’s a business, not a charity.”

Kiran: “I thought banks give loans to help people and earn reasonable interest. I didn’t know the interest itself is unequal. That feels wrong.”

Ganesh: “It’s the game of Trend and Selection.”

Kiran: “Trend and Selection? What’s that?”

Ganesh: “When people see someone happy after buying something and copy them just to feel the same happiness or to show off — that’s Trend. When people buy only according to their actual need, ignoring what others are doing — that’s selection.”

Kiran: "I do not understand the teacher's language; explain it like to a friend."

Ganesh: "You go to a fast-food stall to eat vada pav; there, samosa, vada pav, bhaji pav, patties, and bhaji are all there. Most people take bhaji pav; you take vada pav because bhaji pav is available for 20 rupees and it is not spicy. Vada pav is for 15 rupees, and it is spicy. Eating vada pav saves you 5 rupees, and you also get the fun of spicy food. To save money and to enbliss the taste, you take vada pav; it does not matter to you what the crowd is taking. What the world buys, you do not care about; you choose vada pav only for fulfilling your need. This is called selection."

I had understood the meaning of 'trend' and 'selection', but what relation could the discrimination in loan interest have with 'trend' and 'selection'? I was still not able to understand.

Kiran: "Are trend and selection related to the loan matter?"

Ganesh: "Trend and selection are not only of loans but are two wheels of the entire economics. Trend and selection are opposites of each other, yet both have the same purpose. Trend and selection determine the movement of economics. Whoever knows how to control the movement of trend and selection, he is the economist."

Kiran: "I did not hear anything except 'trend' and 'selection'. Explain a bit slowly and in a friend's language. I do not understand bookish language at all."

Ganesh: "All the buying and selling that happens in the whole world happens on the basis of the mentality of trend and selection. By changing people's mentality, trends and selections can be changed. Both trend and selection have the purpose of doing buying and selling, but because the mentality of doing buying and selling, i.e., the wheels, are opposite to each other, the economy keeps going this way and then that way. Whoever finds the right solution with the right economic policy to put a rein on the increasing prices of goods and services from the mentality of buying and selling, he is the real economist; the rest are all looters."

Kiran: "What is the relation of loan interest with trend and selection?"

Ganesh: "When any human is influenced by a trend, he wants that thing at any cost at that very time. Therefore, initially, he is deliberately given a higher loan interest rate. The human enchanted by the trend cannot see the extra interest and accepts the extra interest without bargaining."

Kiran: "I have not heard so much knowledge in life at once; my mind is getting a bit heavy. I have a child's mind; explain it like to a child."

Ganesh: "You did not even have 10 rupees for eating anything from the school canteen. Still, to understand trend and selection, assume that you have a fancy to eat 10-rupee kulfi from the kulfi seller standing in front of the school gate every day at school lunchtime, and all your friends also have a fancy to eat the same kulfi. One day in the morning while coming to school, you remember that you forgot to take money from your mother. You know that your class monitor gives 50-100 rupees on credit to class children and the next day takes 10-20 rupees extra. 

You go to the monitor at 10 am in the morning and ask for 10 rupees. He says, 'Today I am giving 10; tomorrow you will return 12 rupees to me.' You take 10 rupees from him. When at 2 pm you eat kulfi with credit money, you feel like eating one more kulfi. You go to the monitor again and ask for 10 rupees again. The monitor understands your mentality that you want to eat kulfi right now; after the lunch break ends, you will not be able to buy kulfi, so to take advantage of this mentality, he tells you, 'I will give 10 rupees, but you will have to return 15 rupees tomorrow.' In the morning he was asking for 2 rupees extra; seeing your urgency, instead of 2, he asked for 5 rupees extra. You could not stop your urgency, and you gave a promise to give 5 rupees extra. This is how, seeing the mentality of the trend, the interest rate is given as less or more. If you said, 'I will not give 5 rupees; I do not want to; I will eat kulfi in the evening after going home,' then he would say, 'Okay, you do not give 5 rupees; give only 2 rupees.'"

 

Kiran: "Even if a customer is influenced by a trend, why cannot the boss give the same loan interest to everyone?"

Ganesh: "Why does any human do loan business—to earn money or to help someone?"

Kiran: "To earn money."

Ganesh: "You know so much about the loan business, so why are you not understanding the difference in loan interest?"

Kiran: "I know about loans only as much as I had heard until now. Until today I have never taken a loan. I had solved the mathematics of loan interest in school, but in school, before asking the question of loan interest, it was written—'assume'. Therefore, questions of loans seemed imaginary to me. Today, when for the first time I am doing mathematics of real loan interest, I am getting disturbed, and it feels to me as if by giving less interest to one and more interest to another, I am committing a crime and injustice. I am doing the process of giving extra interest to someone myself; I am doing the entire documentation process myself, so is there no contribution of mine in this injustice?"

Ganesh: "How much salary do you get?"

Kiran: "3000 rupees per month."

Ganesh: "Your boss is able to give you 3000 by writing an extra 1% interest on someone's loan on the same day. If your boss stops writing extra 1% interest on someone's loan, he will not be able to give you 3000 rupees salary. He will fire you from your job and will do the work you are doing himself."

Kiran: "For giving less interest to one customer and more interest to another customer, is the boss responsible, am I responsible, or is the customer himself responsible?"

Ganesh: "That is why it is called the game of trend and selection. Some customers choose following instead of need, and that choice becomes a trend for them. For discrimination in the price of anything, the real responsibility lies with the trend."

Kiran: "Even if any human is taking a loan influenced by a trend, giving him extra loan interest—that should be a crime. Looting someone because of his tendency to follow and giving it legal recognition—that is injustice."

Ganesh: "Now you are understanding why it was necessary for you to study economics to become a sage. There are flaws in some policies of economics, because of which society is being looted. You should learn all points of economics with real experience to expose those flaws and establish righteous policies of economics in society."

Kiran: "Is this trend limited only to loans or included in other matters too?"

Ganesh: "The economy is like a balance—one side is demand; the other side is supply. Whatever difference there is in trend and selection, that much upheaval will keep happening in demand. To bring stability to the economy by controlling trend and selection—that is the basic duty of an economist."

Kiran: "What is economy?"

Ganesh: "To keep balance in demand and supply—that is called economy."

Kiran: “Why will there be upheaval in demand from trend and selection?"

Ganesh: "When there is a trend for something, then demand for that thing will increase. Due to an increase in demand, production of that thing will increase, and as soon as the trend for that thing ends, demand for that thing will decrease. But problems will come when things are available but there is no demand—as a result there will be upheaval in the economy."

Kiran: "I did not understand anything; explain again."

Ganesh: "There is a cricket ground in front of your house. There, a cricket tournament is going on continuously for 20 days. There is a fast food stall there. Every day 200 vada pav are made and sold. Due to the tournament, the sudden demand increased to 2000 vada pav. When, for the third consecutive day, also a demand of 2000 vada pav occurred, then that fast-food owner hired 4 new employees for the job and brought 4 sacks of potatoes for vada pav. Due to the sudden increase in demand, the owner got shocked and forgot to know why demand increased suddenly. When after 12 days the demand kept increasing, then instead of 4 sacks, he brought 10 sacks of potatoes. On the 15th day the tournament ended; 2000-2500 customers used to come every day, but from the next day onwards, again, a regular 200 customers started coming. Due to not being able to plan for giving jobs to 4 extra employees and 10 sacks of potatoes, the extra income that happened in 10 days was all wiped out by the loss in the next 10 days. If he had information about the sudden increase in customers' demand and information about the cricket tournament, then the fast food owner would not buy extra sacks of potatoes and would not give jobs to 4 new employees but would give daily wages.

Just as that fast food owner did not know about the cricket tournament, and sudden demand acquainted him with loss, in the same way other businessmen also do not try to know the reason behind suddenly occurring demand at this level and incur economic loss themselves. Sometimes some institutions deliberately hide the reason behind suddenly occurring demand and take their social and political benefit."

Kiran: “Sometimes, when the demand for a product increases, its price should ideally go down, but instead the price goes up. Why does that happen?”

Ganesh: “When demand rises suddenly, manufacturers often need to arrange raw materials immediately and may also have to take loans quickly to increase production. Because of this, the cost of raw materials and borrowing goes up, which increases the cost of manufacturing and supply. As a result, the price of the product also rises.

The biggest reason is that as soon as demand starts increasing, raw material sellers are often the first to raise their prices. Seeing this, manufacturers and suppliers also increase theirs. Sometimes, manufacturers and suppliers may also profit from the situation, which is why false rumors about rising demand and shortage of stock are occasionally spread. Some customers fall for these rumors and foolishly buy the product just to show others that they have it.”

Kiran: “Sometimes the same item is sold at different prices. Why does that happen?”

Ganesh: “After a product is made, it goes from the manufacturer to the wholesaler, and from the wholesaler to the retailer. If the manufacturer and wholesaler are close to each other, the wholesaler gets the product at a lower cost. If the manufacturer is far away, transportation costs increase. The same thing happens between the wholesaler and the retailer. So even if the product is from the same company, the price can vary because of transport costs.”

Kiran: “Sometimes the product is the same, but the company making it is different, and then the price difference is huge. Why is that?”

Ganesh: “The cost of making and selling a product does not include only raw materials, machines, workers, and transport. Some companies spend more on marketing, branding, packaging, and sponsorships. So, to recover all those expenses and make a profit, they increase the price of the product.

Kiran: “Why do some people deliberately buy expensive things, like an expensive watch, even though a cheaper watch may look even better?”

Ganesh: “People who buy expensive watches want the feeling that they have a treasure on their wrist. They do not buy an expensive watch just to check the time, but to experience the feeling of owning something precious.”

Kiran: “So do people buy things not only for use, but also for the feeling they get from them?”

Ganesh: “The real reason people buy a product is often to get a good and lasting feeling. Things bought only for practical use are not seen as the “real” product, but more like raw material.”

Kiran: “After the tournament, when that stall’s business decreases, will the extra employees lose their jobs? What might happen to them?”

Ganesh: “As soon as the tournament ends, they will lose their jobs, and they may not even feel sad about it if their work is temporary or freelance.”

Kiran: “Are there different types of jobs too?”

Ganesh: “Yes, there are three types of jobs: permanent, temporary, and freelance. A permanent job is one that is not affected by changes in demand. A temporary job lasts only until the demand is fulfilled. In freelance work, the employee has the freedom to work independently. If the right person is given the right type of job, there is usually no problem. But if you give a permanent job to someone who is better suited for freelance work, problems may arise. Likewise, if you give a temporary job or freelance work to someone who is suited for a permanent position, that can also create problems.”

Kiran: “What type of job do I have?”

Ganesh: “You have got a permanent job, but you are actually the kind of person who is better suited for freelance work. You will leave this job very soon.”

Kiran: “Sometimes a job placement agency suddenly needs 1,000 employees, but whenever I go there to ask about a job, they do not need even one employee. Why does that happen?”

Ganesh: “When a new company is established in the market, it may need 1,000 employees, so the company contacts placement agencies for recruitment. Some companies are such that whether an employee works there for 1 year or 10 years, they still cannot get a promotion, so people leave after working for 1–2 years. Sometimes, when a company finishes one project, it may take 6–7 months to get the next one, and during that period the company itself lays off employees. As for you, until you learn to speak English, even if a placement agency needs 1,000 employees, they will still tell you that there is no vacancy for you.”

Kiran: "Will there be upheaval in the economy from selection also?"

Ganesh: "Yes, unethically, to create upheaval in the economy, selection is responsible. When one group deliberately selects some special thing, then demand for other things available in the country decreases—as a result, upheaval happens in the economy. Some institutions and groups in society bring upheaval in the economy through selection to harm some special group."

Kiran: "Can control be exercised on selection so that no one can deliberately select something and harm other producers of the country?"

Ganesh: "Control is the wrong term; it can be done by wrong economic policies. How to manage trend and selection—finding that is the duty of an economist."

Kiran: "Is only selection and trend responsible for the interest rate, or are there more reasons?"

Ganesh: "Capability and trust—these 2 are also responsible."

Kiran: "Capability meaning?"

Ganesh: "When it appears that the thing for which the customer is taking a loan is beyond his capability, then a higher interest rate is charged on his loan. When the thing for which the customer is taking a loan is within his capability, then a lower interest rate is charged on his loan."

Kiran: "Why so? Rather, the one whose capability is less should get less interest, and the one whose capability is more should get more interest, I think."

Ganesh: "You are really very innocent. Why are you studying economics?"

Kiran: "I didn't understand."

Ganesh: "There is a bicycle race in your school. All players have to bring their own bicycle. You also have to participate in the bicycle race. Your friend Sumit also has to participate in the bicycle race, but both of you don't have a bicycle. Your class monitor has so far given loans to 7 players to buy bicycles at completely different interest rates. You and Sumit go together to the monitor to ask for a loan for the bicycle. The monitor talks about giving a loan to Sumit at 5% interest and to you at 25% interest. 

You get angry at the monitor and ask him, 'Why 5% to Sumit and 25% to me?' The monitor says Sumit's father works in a good company. Sumit can return the money to me in 15 days too. I won't need to ask Sumit for money again and again. You don't have a father; from your mother's salary, you can't buy a bicycle in the next 2 years. A bicycle is beyond your capability. If I give you a loan and then have to ask for money, I will have to roam around you for 2 years; my time and energy will be wasted. Every time I ask for 100-200 rupees, you will make me even angrier. For the trouble I will face in the future because of your loan, 25% is very little, but since you are a friend, that's why I am asking for 25%. Understood something?"

Kiran: "Understood completely. So, is trust also for the same reason?"

Ganesh: "To resolve the doubt of capability and trust and to compensate for the cost of collecting the loan in the future, extra interest is taken."

This means I was wrong. Giving everyone a flat 14% interest rate isn't entirely correct. Giving some people less and others more is the right economic strategy. Trends, choice, ability to repay, and trust – these four factors influence loan interest rates. However, unequal interest rates aren't entirely fair either; there should be a fixed limit for the highest interest rate on any loan.

Kiran: "If interest on debt affects circulation, selection, capability, and trust, then does anything affect these?"

Ganesh: "Daitya Mohini affects circulation, selection, capability, and trust—all of these." 

I had heard about Daitya Mohini in the story of Samudra Manthan. Hearing the name Daitya Mohini in economics surprised me.

Kiran: "Who is Daitya Mohini? And what does she have to do with economics?"

Ganesh: "Economics is a four-wheeled vehicle. Circulation and selection are its front wheels, and capability and trust are its rear wheels. Daitya Mohini is its steering. Daitya Mohini controls circulation and selection by turning the steering, causing the vehicle of economics to turn right or left. And whoever turns the vehicle of economics according to his will by commanding Mohini—he is the real economist."

Kiran: "My small intellect doesn't understand the language of books, and you're explaining to me in symbolic language. The entire vehicle of economics went around my head four times and flew away—I didn't understand anything."

Ganesh: "In school, you wild children used to eat spicy, hot, steaming vada pav and samosas and wipe your hands on each other's uniforms. When did you all suddenly start eating sweet, cold kulfi?"

Kiran: "When Puja started eating kulfi daily, to show her that we also like kulfi, we all started eating kulfi."

Ganesh: "By following Puja to influence her, you all licked kulfi in front of Puja daily—that was circulation. Puja, who gave direction to that circulation, was Daitya Mohini."

Kiran: "So was there someone who inspired Puja to eat kulfi?"

Ganesh: "Initially, you all used to eat 10-rupee kulfi. The day Puja started eating 25-rupee kulfi, some children among you also started eating the same 25-rupee kulfi. The one who influenced those children to eat 25-rupee kulfi was not only Puja but also that kulfi-seller economist."

Kiran: "How did the kulfi seller convince Puja? He's a kulfi seller—how did he become an economist?"

Ganesh: "The kulfi seller first identified who the biggest gossip among you children was—who kept news about everyone. He found out that Nikita and Ankit kept tabs on everyone. He gave Nikita and Ankit free 10-rupee kulfi and started asking, 'For six months, you've all been roaming around my kulfi cart but never bought kulfi from me. Then suddenly, why did everyone start buying kulfi?' Nikita and Ankit told him that Puja was buying kulfi, so to impress her, all the vagabond children were buying kulfi. When the kulfi seller learnt the real reason for increased kulfi sales, he planned to sell 25-rupee kulfi instead of 10-rupee kulfi. He started selling 25-rupee kulfi to Puja for 5 rupees, which made Puja start buying 25-rupee kulfi instead of 10. Seeing Puja buy 25-rupee kulfi, some children also started buying 25-rupee kulfi. The kulfi seller had to bear a 20-rupee loss to get the information from Nikita and Ankit, but now he started getting 20,000 rupees in additional profit every month. As long as Puja's trend of buying 25-rupee kulfi continues, he'll keep getting 20,000 rupees in profit every month. The day Puja stops buying that kulfi, the kulfi seller's 20,000 in sales and profit will stop. By planning to sell 25-rupee kulfi to Puja for 5 rupees and achieving 20,000 in additional sales and profit, that kulfi seller became an economist, and Puja became the kulfi seller's Daitya Mohini, and Nikita-Ankit became a research team."

Kiran: "Why is Puja called Daitya Mohini and not any other name? What is the meaning of Daitya Mohini"?

Ganesh: "In this world, there are many ghost-ganas who enter human bodies and experience various desires. The gana that enters a human body and keeps humans bound to unnecessary subjects is called daitya gana. There are many types of daitya gana, one of which is Mohini, which enters a human body and keeps people bound to entertaining and influential subjects."

Kiran: "I don't understand this bookish language—I didn't understand anything."

Ganesh: "Your friends became enchanted and influenced by Puja's beauty. Mohini enters the body of someone who has the capacity to influence other people. Puja had the capacity to influence your friends, so Daitya Mohini entered Puja's body. Due to Daitya Mohini entering Puja's body, Puja suddenly became an influential girl in the entire school; therefore, Puja's walk and style became attractive. As soon as Daitya Mohini leaves Puja's body, Puja will start looking like a common girl again. Her influential form will change to an ordinary form, and after that, whatever she eats or drinks won't matter to anyone."

Kiran: "Is it necessary to know about Daitya Mohini in economics?"

Ganesh: "Daitya Mohini is a subject of philosophy, and the psychology of economics is also a philosophy. Big entrepreneurs keep searching for those people in whose bodies Daitya Mohini resides—who are recognised as influencers. By advertising through such people, those entrepreneurs create strategies of circulation and selection. An economist doesn't use only one Daitya Mohini but desires to control the entire economy by using thousands of Daitya Mohinis."

Kiran: "Is Mohini bad?"

Ganesh: "Remember one thing: nothing is bad in all situations, and nothing is good in all situations. Mohini also has a good form. Mohini is a symbol of revolution. Whenever any new circulation or civilisation has arisen, it has happened because of Mohini. After the invention of new subjects, the work of propagating them throughout the entire world is done by Mohini. Therefore, don't consider Mohini bad. Based on who is using Mohini and what is being done, consider the one controlling Mohini as bad or good."

Kiran: "If the main objective of an economist is to make righteous economic policy in society, then why does an economist lure society and loot them?"

Ganesh: "There are two types of economists: private economists and social economists. Those who use Daitya Mohini for the development of their institution or family are private economists. The one who makes righteous economic policy so that the combined effect of thousands of Mohinis doesn't cause economic loss to his society and keeps the economy balanced—he is a social economist." 

Kiran: “What kinds of policies does an economist create?”

Ganesh: “An economist has to work on eight fundamental policies:

Proper pricing of goods and services

Limited and controlled printing of money

Regulation of the funds deposited in the central bank and the money circulating in the market

Control over the amount of investment

Fair taxation and efficient tax collection

Control over wastage

Regulation of imports and exports

Control over international currency value

Kiran: “I had heard that economists mainly work on GDP. What is GDP?”

Ganesh: “GDP is the total value of all goods produced and all services provided by the citizens of a country. However, no one can calculate an absolutely exact GDP, because some goods are produced but remain unsold in storage, so their value cannot always be properly counted. In the same way, some services are paid for in cash and are never officially recorded. So, when a country reports its GDP, it is essentially giving an estimate, not an exact reality. Sometimes fake GDP figures are also created to manipulate other countries or even the country’s own citizens. A true economist does not rely only on GDP.”

Kiran: “Then what does an economist look at the most?”

Ganesh: “Both an economist and God observe spending. The people of a country who spend more are wealthier. A person who spends more is wealthier. A business that spends more is more successful.”

Kiran: “Even someone who does not work might spend their family’s money. Does that make them wealthy and successful too?”

Ganesh: “Spending is of three types:

Spending for one’s own growth

Spending to fulfill one’s desires

Spending to impress others

Out of these three, God looks at the first type, an economist looks at the second, and the devil and criminals look at the third. Every expense either benefits you or benefits someone else. But every expense benefits someone in some way, which is why spending is observed carefully.”

Kiran: “What does it mean to regulate the amount deposited in the central bank and the amount of money circulating in the market?”

Ganesh: “The money deposited in banks is circulated into the market for investment. At the same time, loans are given to people and companies, and the money being loaned out is actually the citizens’ deposited money. If banks give out excessive loans, they may no longer have enough reserves. Then, if demand suddenly rises in the market, or a festival arrives, or a war-like situation develops, or citizens need to keep cash with themselves, the banks may not have enough money to return to depositors. This could create chaos across the country. That is why controlling banking investment and lending is essential.”

Kiran: “What does controlling the amount of investment mean?”

Ganesh: “When a company is registered in the share market, it is appropriate to allow investment only up to a certain limit based on its production and stability. If a company’s production is worth 100 crore, but investors are allowed to invest 500 crore, that money could be misused. Or the company could intentionally declare bankruptcy and cheat investors out of 500 crore. At the same time, if a company performs well for a few months, its value rises, so the investment limit may also need to be increased. But if its value keeps falling and the investment limit is not reduced, then investors remain at risk of losing their money.”

Kiran: “What is fair taxation and tax collection?”

Ganesh: “It is fair for a country to collect at least 2% tax and at most 10% tax from its citizens. That tax should be used for the country’s development. But when a country sells its national industries to private companies, it no longer receives 100% of the revenue from those industries. Instead, it receives only around 10% tax on that revenue. As a result, to make up for the lost 90%, the country may begin collecting 20% or 30% tax from its citizens, which is inhumane. This gradually reduces patriotism among the people. No government should take more than 10% tax. Instead, it should increase revenue by developing national industries. Citizens should also support national industries so that the country’s revenue grows and the tax burden on the people stays low.”

Kiran: “What does controlling wastage mean?”

Ganesh: “Sometimes a government introduces schemes to handle sudden crises, but those schemes also need to be stopped at the right time. Otherwise, they may reduce the country’s revenue. Some tasks should be carried out directly by national institutions, but instead they are handed over to private companies through tenders, which reduces revenue. Sometimes opposition parties want to launch certain schemes only after coming to power, so they prevent the current government and officials from completing them on time, which causes economic loss to the country. Markets should also have enough safe storage rooms, because sometimes goods are lost due to insufficient or unsafe storage. There are many such matters that must either be done or stopped at the proper time; otherwise, they only lead to losses.”

Kiran: “What does controlling international currency mean?”

Ganesh: “In international trade, every country tries to show that its own currency has a higher value than the other country’s currency so that it gets more in exchange. For example, one US dollar, which perhaps should have been worth 30 or 40 Indian rupees, has been made equal to 80 rupees. That way, when America sells a 1-dollar burger to India, it gets 80 rupees in return. And with those 80 rupees, it can buy another Indian product worth 80 rupees. But if America were supposed to get only 40 rupees instead of 80, then it would only be able to buy goods worth 40 rupees, not 80. But because of currency printing and unfair international agreements, perhaps India accepted 80 rupees instead of 40 for 1 dollar. Maybe out of those 80 rupees, 60 go to America and 20 go to the institution that signed the deal. This is how the game of international currency continues. A patriot raises the value of his country’s currency, while some politicians use corruption to earn money for their next election.

Kiran: How many types of currency are there?

Ganesh: There are three types of currency: goods exchange, valuable metal, and promise paper.

Kiran: What is goods exchange?

Ganesh: A milkman gives milk worth 30 rupees and takes rice worth 30 rupees from a shopkeeper. Exchanging rice for milk—this is goods exchange currency.

Kiran: What is valuable metal?

Ganesh: Raw materials cannot be saved for future transactions because they spoil जल्दी. Therefore, people started using valuable metals and property in exchange; this is called valuable metal currency. With metal currency, goods and services are purchased.

Kiran: What is promise paper?

Ganesh: It is difficult to carry metal currency for small transactions in the market, so metal currency is kept in one place called a bank. The bank gives a paper stating that your metal value is deposited with them, and whenever you want to take that metal value, you can do so by showing this promise paper. Even the 10 rupees in your pocket is also a promise paper.

Kiran: Are there any other types of currency besides these?

Ganesh: The era of mobile phones is beginning. It is possible that a number stored in a mobile’s memory card may be declared as currency; whoever has more numbers in their mobile would be richer. But there will be a problem in this—when the mobile is switched off, signals fail, or if someone deliberately shuts down the internet and makes the whole world dependent on them to get their money back, then a very big problem can arise. Do not become part of this currency; otherwise, someone may make you work hard for 10 years, show money as numbers in your mobile, and as soon as you leave the job or oppose their injustice, they can reset your phone in one second and make you bankrupt. To avoid becoming bankrupt, you may end up choosing to become a slave.

Kiran: “I heard people talking about the budget. What exactly is a budget?”

Ganesh: “Right now, you only have 20 rupees in your pocket, and even that you borrowed from your mother just to eat a vada pav. Do you really want to know about the budget?”

Kiran: “I still want to know, otherwise I’ll get a headache.”

Ganesh: “Every country has a different budget because their revenue and expenses differ. The entire budget depends on these two pillars: revenue and expenses. Every country calculates its revenue and expenses, and if revenue is low and expenses are high, the government increases income tax on certain products, services, or even aspects of citizenship. If revenue increases, taxes may be reduced. People wait to see the budget to know whether they have to pay extra taxes on products and services or if they will get relief.”

Kiran: “I only wanted to know why everyone is not given the same interest rate on loans, and you ended up teaching me an entire book.”

Ganesh: “Everyone’s income, needs, desires, spending habits, and limits are not the same. Interest rates are decided only after considering all these factors.

Kiran: “That means I was wrong. Giving the same 14% interest rate to everyone is not right. Giving less to some and more to others is the correct economic strategy.”

I had never studied so much about economics in school or college, nor had I heard these ideas anywhere else. I was amazed at how Ganesh had gained so much knowledge about economics.

Kiran: “Which thing in economics is it that I absolutely should not know?”

Ganesh: “If I tell you the very thing you’re not supposed to know, then would I still deserve to be called Ganesh?”

Kiran: “Where did you get all this knowledge from?”

Ganesh: “When you go to eat vada pav, you only look at which vada is bigger, and then you ask for that one. You see nothing beyond the small vada and the big vada. But I observe the skill and effort behind making it. I observe the ingredients, where those ingredients came from, their source, their price, the cost involved, the customers’ choices, their conversations, their demand, their nature, and their behavior. And not just vada pav—wherever you go, I observe all these things. That is how I gain this knowledge.”

Kiran: “Then why didn’t you tell me all this earlier?”

Ganesh: “Some knowledge I have already given you twenty times. But just like you eat vada pav and forget everything, you forget it too. Whenever you actually need that knowledge, you ask me again—just like you are asking now.”

Kiran: “After hearing so much about economics, I’m getting scared. What if I get a headache? Which medicine should I take?”

Ganesh: “In one hour, you’ll go home from the office, eat vada pav downstairs, and the very next moment you’ll forget what economics even is. You do not need medicine—you need vada pav.”

Conclusion: If economics is a car

Front wheels: Trend and Selection (determine direction and responsiveness)

Rear wheels: Capability and Trust (provide stability and grip)

Fuel: Supply (powers movement, materials and manpower)

Accelerator: Demand (controls speed and momentum)

Steering wheel: Daitya Mohini (guides direction through influence)

Brakes: Economic Policies (control excess, prevent crashes)

Accident: Greed, Fraud, and Corruption

Headlights: Market Research (help reveal the road ahead)

Horn: Social media and fake narratives (creating noise and distraction)

Driver: The Economist (makes real-time decisions)

Owner (back seat): Company Owner or Prime Minister (sets destination and bears responsibility)

A vivid and layered analogy—economics as a dynamic vehicle driven by human psychology, incentives, and power.

There are two types of drivers:

1. The social economist, who follows traffic rules, applies brakes in time, and protects society.

2. The private economist, who ignores rules, drives recklessly for personal gain, harms others, and ultimately crashes.

Note: This content represents one half of a chapter from Kedi Purana, a 40-chapter work authored by Kedi Ganapati. Kedi Purana is a modern Purana of the present and final Kaliyuga.

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