7 Comments
User's avatar
Chandra Mohan S's avatar

Loved the article. I appreciate your efforts to write the topics keeping a common man as your audience. You make the complex topics easy to understand. Wish you host a training on this topic on skillshare or Udemy.

I always think about how previlaged we common people are compared to any emperor.

As a Bangalorean I love the weather but hate the traffic jams!

Two questions:

Why do governments have to compensate loss of revenue with borrowing? Can't the government cut expenses?

Why governments won't work efficiently? They are mired with corruption and inefficient deployment of resources. Is it a structural problem? Is uncertainty of a politicians' career source of it? Is there a way to make politics a stable career similar to the career of a doctor or a clerk?

Expand full comment
Mohit Satyanand's avatar

Great questions, Chandra.

Yes, the government does need to cut expenses, and it probably will, but:

1. A very large part of expenses are salaries and establishment, and get fixed.

2. Similarly, interest on past loans.

3. Efficiency is difficult to achieve when there is no incentive - Other People's Money.

I would hate a situation where politicians have secure jobs. They need to know they can be asked to leave every 5 years.

Expand full comment
Chitranjan Dar's avatar

Wow-what a delightful spread, Mohit. I look forward to Gimme Mo with huge anticipation and you never disappoint.

I believe economic distress this time around, may require frequent interventions by the government to soothe short-term pain. I hope the government uses the right tools which are impactful and does not necessarily resort to only the headline-grabbing ones. Remains to be seen.

Expand full comment
Mohit Satyanand's avatar

Thanks, Chittu.

I believe our economy is in need of deep reform. The government has little head-room, and the global uncertainty makes it difficult to take tough decisions.

I no longer think the trade-off is between impact and headlines; it is between the short- and the long-term. We probably need to take a lot of pain in he short-term, if we want a less volatile future.

This year is going to be very demanding.

Expand full comment
Ritik Gupta's avatar

Thanks for the great article Sir.

Truly appreciate it.

But I am pondering over a question for quite a time.

Why do VC firms value growth over basic fundamentals of a product.

I mean everybody can't be an Amazon.

I am novoice here, so please guide me if you can .

Expand full comment
Mohit Satyanand's avatar

Ritik,

Great question.

The 'dharma' of Venture Capitalists is growth; which is why they are a separate category from mutual funds.

The idea is to identify young businesses which have the potential to grow rapidly.

You don't need to be a VC to buy Hindustan Unilever or Maruti.

Expand full comment
Ritik Gupta's avatar

Thank you for the insight sir.

Hope to learn a lot from you..

Expand full comment