Why India is still a developing country ?

Recently I Read a Brilliant Story on Quora and Think it Perfectly Relates to India as a Developing Country and perfectly describes the reason behind India’s underdevelopment.

Old Story:

The Ant works hard in the withering heat all summer building its house and laying up supplies for the winter.
The Grasshopper thinks the Ant is a fool and laughs dances plays the summer away.
Come winter, the Ant is warm and well fed. The Grasshopper has no food or shelter so he dies out in the cold.

India - GrassHopper
New Version:
The Ant works hard in the withering heat all summer building its house and laying up supplies for the winter.
The Grasshopper thinks the Ant’s a fool and laughs dances plays the summer away.
Come winter, the shivering Grasshopper calls a press conference and demands to know why the Ant should be allowed to be warm and well fed while others are cold and starving.
NDTV, BBC, CNN show up to provide pictures of the shivering Grasshopper next to a video of the Ant in his comfortable home with a table filled with food.
The World is stunned by the sharp contrast. How can this be that this poor Grasshopper is allowed to suffer so?
Arundhati Roy stages a demonstration in front of the Ant’s house.
Medha Patkar goes on a fast along with other Grasshoppers demanding that Grasshoppers be relocated to warmer climates during winter .
Mayawati states this as “injustice” done on Minorities.
Amnesty International and Koffi Annan criticize the Indian Government for not upholding the fundamental rights of the Grasshopper.
The Internet is flooded with online petitions seeking support to the Grasshopper (many promising Heaven and Everlasting Peace for prompt support as against the wrath of God for non-compliance).
Opposition MPs stage a walkout. Left parties call for ‘Bengal Bandh’ in West Bengal and Kerala demanding a Judicial Enquiry.
CPM in Kerala immediately passes a law preventing Ants from working hard in the heat so as to bring about equality of poverty among Ants and Grasshoppers.
Lalu Prasad allocates one free coach to Grasshoppers on all Indian Railway Trains, aptly named as the ‘Gharib Grasshopper Rath’.
Finally, the Judicial Committee drafts the “Prevention of Atrocities Against Grasshoppers Act” [PAAGA], with effect from the beginning of the winter.
Arjun Singh makes ‘Special Reservation’ for Grasshoppers in Educational Institutions in Government Services.
The Ant is fined for failing to comply with PAAGA and having nothing left to pay his retroactive taxes, it’s home is confiscated by the Government and handed over to the Grasshopper in a ceremony covered by NDTV.
Arundhati Roy calls it ‘A Triumph of Justice’.
Lalu calls it ‘Socialistic Justice’.
CPM calls it the ”Revolutionary Resurgence of the Downtrodden’
Koffi Annan invites the Grasshopper to address the UN General Assembly.
Many years later…
The Ant has since migrated to the US and set up a multi-billion dollar company in Silicon Valley,
100s of Grasshoppers still die of starvation despite reservation somewhere in India,
..AND
As a result of losing lot of hard working Ants and feeding the grasshoppers, India is still a developing country…!! ! 🙂 🙂 🙂

 

Source : Quora

Beer and The Tax System

 

Suppose that every day, ten men go out for beer and the bill for all ten comes to $100. If they paid their bill the way we pay our taxes, it would go something like this:

The first four men (the poorest) would pay nothing.
The fifth would pay $1.
The sixth would pay $3.
The seventh would pay $7.
The eighth would pay $12.
The ninth would pay $18.
The tenth man (the richest) would pay $59.

So, that’s what they decided to do. The ten men drank in the bar every day and seemed quite happy with the arrangement, until one day, the owner threw them a curve. He said, “Since you are all such good customers, I’m going to reduce the cost of your daily beer by $20. Drinks for the ten now cost just $80.”

The group still wanted to pay their bill the way we pay our taxes, so the first four men were unaffected. They would still drink for free. But what about the other six men — the paying customers?

How could they divide the $20 windfall so that everyone would get his “fair share”? They realized that $20 divided by six is $3.33. But if they subtracted that from every body’s share, then the fifth man and the sixth man would each end up being paid to drink his beer. So the bar owner suggested that it would be fair to reduce each man’s bill by roughly the same amount, and he proceeded to work out the amounts each should pay!

And so:
The fifth man, like the first four, now paid nothing (100% savings).
The sixth now paid $2 instead of $3 (33% savings).
The seventh now pay $5 instead of $7 (28%savings).
The eighth now paid $9 instead of $12 (25% savings).
The ninth now paid $14 instead of $18 (22% savings).
The tenth now paid $49 instead of $59 (16% savings).

Each of the six was better off than before. And the first four continued to drink for free.

But once outside the restaurant, the men began to compare their savings.

“I only got a dollar out of the $20,” declared the sixth man. He pointed to the tenth man, “but he got $10!”

“Yeah, that’s right,’ exclaimed the fifth man. “I only saved a dollar, too. It’s unfair that he got ten times more than I!”

“That’s true!!”shouted the seventh man. “Why should he get $10 back when I got only $2 ? The wealthy get all the breaks!”

“Wait a minute,” yelled the first four men in unison. “We didn’t get anything at all. The system exploits the poor!”

The nine men surrounded the tenth and beat him up.

The next night the tenth man didn’t show up for drinks, so the nine sat down and had beers without him. But when it came time to pay the bill, they discovered something important. They didn’t have enough money between all of them for even half of the bill!

And that, boys and girls, journalists and college professors, is how our tax system works. The people who pay the highest taxes get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up any more. In fact, they might start drinking overseas where the atmosphere is somewhat friendlier.

Courtesy –
David R. Kamerschen, Ph.D.
Professor of Economics, University of Georgia

 

Importance of MBA !!

Today afternoon I received an interesting call from a lady from a famous Management institute urging me to join for an MBA program. And then the discussion veered off to Importance of MBA’s with regard to success in life.

Here are the few reasons why I think doing an MBA does not hold much relevance in India.

In current scenario the approx salary of a MBA grad from a normal school is around 25k which is also the normal salary of a freshly passed out Engineering Graduate. And if we talk about premier management institutes like XLRI or IIM’s in India then there is a very different scenario out there.

Around 3,00,000 Candidates appear for CAT(Common Admission Test) each year out of which around 300 candidates get selected per institute in a batch which amounts to 0.1% success rate.

An average candidate has around 2 yrs of work experience and would have prepared for anywhere between six months and one year before appearing for CAT.

Then he spends two years doing MBA from an Ivy League college in India.

This means the person has spent four to five years after his graduation when he passes out of the management Institute and get a good job offer.

Now my question is that “A candidate who can beat 99.9% of other candidates in a national level admission test and be among top 300 out of 3 Lac candidates wouldn’t be smart enough to get to the same salary level in five years?”

And when you take the best talent out of the country and then train them for two years aren’t they supposed to be good. I think the quality of an Institute should be measured only when you take a mediocre student and make him the best in the league. Because then the credit of nurturing the student can be passed to the institute.

Starting Up in this context can teach a lot to a person in real world as compared to A MBA degree from an Ivy League Institution. As we always learn more from the experiences as compared to theory classes (I am not saying that MBA is all about theory and doesn’t contain on field work or assignments).

And again the experience of starting up is very different as we learn a lot during our journey as compared to theory classes. No MBA class will teach you that your suppliers almost never pay on time or the way to get it from them. And MBA classes generally do not give you any unknown or unsolved problem to face everyday which can be solved by innovative thinking. I do agree that there is a lot of unexposed learning and high quality case studies which we encounter in MBA but we all have to agree that firsthand experience is most important than a second hand case study.

Talking about placements, we must agree that they give great placements and the average package is more than what a middle class Indian can save in a life time. But again in my perspective freedom matters more than money (I mean excess money from daily expenditure).

And given a choice I would choose to be a founder of a company which has revenue of 10 Lac than being a Product manager earning 50 Lac working in a multinational company.

What would you choose?

The Addiction called Salary

Few Reasons why I hate it.

1) It is Limited.

2) I can’t Decide it on my own (No, I am not asking for a billion dollar cheque or May be I am ).

3) I have to wait for Thirty Days to Get it.

4) I have to care about the right side of the menu before ordering my meal.

5) I have to do work which i am not passionate about.

6) I have to lie about it to people, when they ask. and hence commit a sin.

7) My choices are limited to my Cash Inflow.

8) I have to wait for Years before it gets doubled.

9) My wishlist is still waiting to be ticked of and may have to wait forever.

 

Three United States two-dollar banknotes in se...

If i could have more of it.  (Photo credit: Wikipedia)

 

How do I get Rid of it ??

1) Decide what i love to do.

2) This way i wont have to wait for a paycheck to fulfill my passions.

3) I can work as per my wishes and i would be doing what i want to do not what others want me to do.

4) Start a business out of it, people have made money selling stones, this will be much easier.

5) You will get to meet great people, and you will enjoy learning and being with them.

6) You will know who is you friend and who is not.

8) Don’t get into analysis paralysis, just do it, you wont regret it.

9) If you value freedom, then believe me, this is the best thing which will ever happen to you.

Campus to cubicle vs Campus to CEO

College is a great time of life, where we experiment, learn have an unlimited amount of fun without having to worry about anything. Education system in most of the countries conditions us to get a good job in a cool environment and safety of a lifetime, till next recession or economic  slowdown. some of us move on a different path and try to get out of the rat race by doing something on our own, like starting up a business or venture or believing that our Idea can change the world.

Here are 11 reasons to support both perspectives about a good job and about starting up. You can go through them and share you views.

 

Thanks to Amrutash Mishra for Sharing this Presentation.

Making “RIGHT” Decisions about Money !!

We’re bad at it. And marketers know this.

Consider: you’re buying a $30,000 car and you have the option of upgrading the stereo to the 18 speaker, 100 watt version for just $500 more. Should you?

Or perhaps you’re considering two jobs, one that you love and one that pays $2,000 more. Which to choose?

Or…

You are lucky enough to be able to choose between two colleges. One, the one with the nice campus and slightly more famous name, will cost your parents (and your long-term debt) about $200,000 for four years, and the other (“lesser” school) has offered you a full scholarship.

Which should you take?

In a surprisingly large number of cases, we take the stereo, even though we’d never buy a nice stereo at home, or we choose to “go with our heart because college is so important” and pick the expensive college. (This is, of course, a good choice to have to make, as most people can’t possibly find the money).

Here’s one reason we mess up: Money is just a number.

Comparing dreams of a great stereo (four years of driving long distances, listening to great music!) compared with the daily reminder of our cheapness makes picking the better stereo feel easier. After all, we’re not giving up anything but a number.

The college case is even more clear. $200,000 is a number that’s big, sure, but it doesn’t have much substance. It’s not a number we play with or encounter very often. The feeling about the story of compromise involving something tied up in our self-esteem, though, that feeling is something we deal with daily.

Here’s how to undo the self-marketing. Stop using numbers.

You can have the stereo if you give up going to Starbucks every workday for the next year and a half. Worth it?

If you go to the free school, you can drive there in a brand new Mini convertible, and every summer you can spend $25,000 on a top-of-the-line internship/experience, and you can create a jazz series and pay your favorite musicians to come to campus to play for you and your fifty coolest friends, and you can have Herbie Hancock give you piano lessons and you can still have enough money left over to live without debt for a year after you graduate while you look for the perfect gig…

Suddenly, you’re not comparing “this is my dream,” with a number that means very little. You’re comparing one version of your dream with another version.

Reproduced from seth godin’s blog.

Socialism

A stylized representation of a red flag, usefu...

Red flag -signifying socialism. (Photo credit: Wikipedia)

An economics professor at a local college said that he had never failed a single student before but had once failed an entire class.

That class had insisted that socialism worked and that no one would be poor and no one would be rich, a great equalizer.

The professor then said, “OK, we will have an experiment in this class on socialism. All grades would be averaged and everyone would receive the same grade so no one would fail and no one would receive an A.

After the first test, the grades were averaged and everyone got a B.
The students who studied hard were upset and the students who studied little were happy.

As the second test rolled around, the students who studied little had studied even less and the ones who studied hard decided they wanted a free ride too so they studied little.

The second test average was a D!

No one was happy.

When the 3rd test rolled around, the average was an F.

The scores never increased as bickering, blame and name-calling all resulted in hard feelings and no one would study for the benefit of anyone else.

All failed, to their great surprise, and the professor told them that socialism would also ultimately fail because when the reward is great, the effort to succeed is great but when

government takes the reward away, no one will try or want to succeed.

Could not be any simpler than that.

What a profound short little paragraph that says it all
“You cannot legislate the poor into freedom by legislating the wealthy out of freedom. What one person receives without working for, another person must work for without receiving.

The government cannot give to anybody anything that the government does not first take from somebody else.

When half of the people get the idea that they do not have to work because the other half is going to take care of them, and when the other half gets the idea that it does no good to work because somebody else is going to get what they work for, that my dear friend, is about the end of any nation.

You cannot multiply wealth by dividing it.”