Financial independence is the most sought trait in recent times. It is not wrong to be financially capable, but the means to achieve that has to be right. In the mundane world the yardstick to measure the status of an individual is the amount of wealth he has. The more wealth one has the eminent figure he is. While a few earn wealth without breaching the line of illegality, some have the knack of doing illegal things legally. Both may be good at finance and can flourish with their wealth, but they are causing a dent in economics. Amassing wealth by ignoring economics can bring temporary flaunt and pleasure, but in the long run, one has to pay price of ignoring the economics.
Now is finance and economics different???
They say Indians are rich but India is a poor country. My country is financially strong, but economically weak. Economics is embodied with certain rules, regulations, policies, vision, to check on the fraudulent flow of the money. Finance is an individual matter while economics is that which focuses on holistic progress. Economics is designed to provide financial stability to the society as a whole. Finance cares only for the self and economics cares for everyone.
We have seen many who earn in crores financially but evade tax. Financially they are strong but economically they are sick. Firstly we need to understand that in any society the payment for occupation is not appropriate. A movie star is remunerated more than what a farmer who toils in his farm gets, not to talk about corrupt bureaucrats, politicians and crony capitalists. Economics is modelled to support the weaker section and eliminate the domination of the financial giants ensuring the stream of money flow towards everyone. It is the finance oriented people who smartly bend the economics and amass money. They may be termed smart, but not as wise as economists, who have the vision of stability. Amazingly the people who ignore the economics and focus on the finance are the ones who do not enjoy their money. They either get caught for breaching the regulation or end up stressed trying to safeguard their unethical collection of finance. Hoarding of money gives more stress than they can provide comfort and pleasure. Wealth is supposed to take care of us, not we taking care of it, stressed out. Mallya and Modis can boast of their wealth but live as fugitives fearing arrest anytime. Are they in joy and happiness???
Financial fraud is the effect of ignoring economics. By overlooking economics we are directly responsible for the financial crisis in the country and high rate of inflation. The nation’s financial strength depends on the implementation of economic policies and its sincere compliance. The rise and fall of Indian Rupee depend on the per capita and circulation of money in the market, not by the net income of the few financial frauds or the black money they have amassed.
There is no evidence in the history where a person who has amassed money fraudulently has benefited from it at his eleventh hour. Money may buy medicine but not health. Astonishingly the generations of those who have amassed money continue to pile garbage. It is invariably a wrong result in the wrong and unethical deeds.
A nation can be financially robust if the economics is valued by every single individual. The onus is on us not just on the elected government. Normally an ache in the stomach is either due to hunger or indigestion. Economics is an antidote to both, it lets everyone eat their share and burp in satisfaction, avoiding starvation as well as overeating.