The faults in our finances and investments

The recent decision to invest EPFO (Employee’s Provident Fund Organisation) funds in stock market raises the basic question – Is saving not possible without investment? This is from the employee’s point of view rather than the point of view of so called prodigies of our financial markets. Left to the prodigies, everything will be treated as an economic entity and the economic disparity among individuals will be ever increasing. The act of creating profits without generating anything of value but simply by managing risks puts us at a risk of future indebtedness. We are thus creating burden of debts on our future generations, classic example in this regard is the Greece debt crisis. The debt thus created is often met with imposing taxes on individuals. More often than not the risk taken by financial institutions has adverse effects on the taxpayers rather than the risk takers, take any bailout as an example. Whether it be Jan Dhan Yojana scheme, Gold Monetisation scheme etc., the underlying agenda is to increase the flow of capitals in the form of individual’s investment. It seems saving without investment is hardly possible these days, it’s just like how it is becoming difficult to spend without borrowing. Someone rightly described us as ‘the risk society’. We must just make sure that someone else does not need to pay for the risk we are taking.

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