GDP Crash and PUBG Ban | By Dhruv Rathee - YouTube

Greetings, friends!

In today's video, let us talk about the economic conditions of our country

All records have been broken and our GDP has now breached the double digits

Minus twenty.... -(The Godi Media alternate Dhruv): *Coughs*

The Godi Media alternate Dhruv: Excuse me! There has been a major expose in the Rhea Chakarvarty case

Watch it for sure!

Real Dhruv: I'm busy making a video here

Let us stay focused on this issue. This is more important

So... Where was I?

Our country's GDP has hit minus... - The Godi Media alternate Dhruv: What a "Mann ki baat" it was!

Toys are so necessary!

We should definitely play with toys!

Toys are such an amazing invention indeed!

The real Dhruv: As I was saying, the GDP of our country has dropped to a minus 23.9...

The Godi Media alternate Dhruv: PUBG has been banned! Bro, did you know that?

The real Dhruv: What should I do if PUBG is banned?

I apologize if my acting was not that great

Not every one is a "fakeer" and a natural born actor!

What I was trying to convey through "acting" is actually the real scenario of our country today

More than 80,000 cases of corona virus are being reported per day

which is a record in itself- if no other country of the world such a huge multitude of cases are reported in a day

India has now become the worst country in this case

In such a scenario, students are being forced to go write the JEE exams

where there are no traces of social distancing and SOPs

The students have to put their lives at stake to write these exams

And at the same time, the economic conditions of the country are so poor

that GDP growth rate has now become minus 23.9%, which is

much worse in comparison with the rest of the developed countries

And our sold off media is pulling out all the tricks up its sleeves to distract you

They slogging hard 24x7 to think of issues that would distract you

So, let us talk about the economic conditions of the country today

As soon as these GDP figures were made public, government trolls were unleashed to distract you and fool you

Graphics went viral on the social media that said that the growth rate in USA is minus 31%!

and that the growth rate of Canada was minus 38.7%!

and that the growth rate of Japan was minus 27.8%

So obviously India was better off than these countries

and so India must have performed much better

It all is possible because of Modiji

Right?

But that was Fake news

These government trolls were deliberately showing you fake news and were comparing wrong statistics

to show that India's position was better off

The data was alright, but the comparison was wrong

The Quarter on Quarter GDP figures were being compared with annualized GDP figures

When you compare them on the same scale, just like the Chief economist of the International Monetary Fund did,

Then you will see that the figures on a Quarter on Quarter, non annualized basis, for USA are

minus 9.1% GDP growth rate

the figures of Europe are minus 11.7%

the figures of Great Britain are minus 20.4%

and the figures of India are minus 25.6%!

There is no doubt that among the major countries- be it developed or developing countries,

India has been the worst performing country

And the reason behind that is pretty simple

The reason is not solely "Act of God" or "Act of COVID 19", but

also an act of fraud

*video of an expert debunking all "act of God" conspiracies*

I apologize. The flow of emotions made me talk like Modiji

I mean to say that the economic conditions of the country today is largely because of

the prior decisions taken by this government

For example, demonetization, GST, and terrible economic policies as well as bank frauds

Similarly, the second worst performing country amongst the G 20 countries is United Kingdom

I'm talking about the same comparison list

United Kingdom had a figure of -20.4% whereas India had a figure of -25.6%

and the reasons behind this is internal as well

The Brexit that has plagued the UK's economy for the past few years has completely destroyed it

and this is why UK is the second worst performing nation

Barring exceptions like UK and India, the rest of the countries have seen a dip in GDP due to COVID19

in the range of -7% to -11%

Brazil, Germany, USA have all seen a dip of 9%

Minus 9% in Russia as well, whereas minus 7% in Australia

Coming back to India, how bad is the economic state?

The exercise of recording quarterly GDP growth rate data began in 1996

Prior to that, it was measured annually

Ever since then, this has been the worst quarterly performance

Talking about annual performance, the worst GDP growth rate performance of India was seen in 1979-80

at -5.2%

The annual figures have not come in yet but many experts believe that when they are released,

conditions are going to be even worse than that

Going by this logic, you could say that ever since the country's independence,

things have never been so bad for the economy under no government

What is surprising is that some experts are of the opinion that there is fudging of data

as I have explained in a previous video

The GDP growth rate figures in the last few quarters and the last few years

have been exaggerated by the government according to some experts and economists

Taking that into account, the same experts say that in reality, the GDP data today

would be even worse than minus 30%!

Conditions of unemployment are also bad

The top trend on Twitter is regarding unemployment every second day

But there is some good news

Unemployment had peaked at 23% in the months of April and May

In June, it has come down to 11%

But the job losses were in Millions!

If you observe the sector by sector breakdown of the GDP growth rate

then every sector has a negative growth rate except the agricultural sector, where the growth rate is positive

Superficially, it might seem like good news but it isn't so

Experts believe that the extreme number of job losses

caused the people to revert to the agricultural sector and farming

due to which, a slight positive growth rate is visible

The people reverted to farming out of helplessness

According to an estimate by the World Bank, more than 12 million Indians

will be pushed into poverty due to this crisis

Another shocking figure is that of the suicide rates of NCRB 2019- when thigs were not as bad as today

The data reveals that last year, more than 32,000 daily wage earners

and more than 10,000 people in the farming sector committed suicide

and job losses are said to be a major reason behind it

Generally, when economy is in such a terrible state, the prices of goods do not rise

There is not so much of dearness and the inflation rate remains low

But the situation today is quite the reverse

They have been unable to achieve the upper limit set by the RBI for inflation

Inflation was 6.9% in July

which is a bad news because people are losing their jobs and they have no money

but the prices of the goods are rising

This does not happen normally.

I had explained this in the video on inflation. You can click on the "i" button and watch it if you want to understand

When all this data is put forward in front of the government and questions are raised on it,

then the government tries to distract you

Sometimes, the situations are attributed to an act of God and sometimes they are said to be not so bad

But as proof of the fact that the situations are much worse than before,

you can see the GDP growth rate of the last few quarters in the graph

From 7% to 6.2% to 5.6% to 4.4% to 3.1%- it kept declining steadily

and today, it has fallen into the negatives

All of this had happened before the breakout of COVID19

So, not everything can be blamed on COVID19

It is the decisions of the government that are making matters worse

because the government is busy with something else

In a situation when the people do not have enough money to spend, they lower their consumption

that is, they reduce their expenditure on things

and when consumption falls, the businesses do not invest that much

and this overall, has an aggravatingly bad effect on the GDP as well as the economy

it becomes a downward spiral

This is why economists believe that it is important for the government to intervene and take steps to stop it

Many economists suggest a bailout for small industries

while some suggest that funding in schemes like MNREGA should be further increased

so that money is given in the hands of the people

and a downward spiral like situation is not created

It remains to be seen what decision will be taken by the government

Another suggestion is that the government increases its debt to GDP target ratio

Right now, it is 20%. If it is further increased, then the rest of the state governments would get the opportunity

to spend more

The debt would increase but it would be okay because people would atleast be able to sustain in the short term

But here's one thing I'd like to say- Today, the GDP growth rate is so greatly negative

that the base for the upcoming GDP growth rates in the future would become so low

that it would be very easy to keep the growth rate in the positives

Keep this mind- The government would then try to claim credit

of reviving the economy and getting the GDP growth rates back in the positives

The reason for that would be that it has fallen so low today

that it is bound to come up

because the lockdown is gradually being removed

and the lockdown was a major reason for the complete stagnation of the economy

But we will only get to know in the long term, that is, in the coming two years

if you notice the trend of the GDP growth rate and see that the economic conditions of our country is improving,

or deteriorating

I hope you would have found this video to be informative. Share it

and if you like my work, you can support me on Patreon.com/DhruvRathee

or by becoming a member on Youtube by clicking on the join button

so that I may continue to make such videos for you in the future

We will meet again in the next video

Thank You!