A Basket of 60%
Let us have some assumption before starting up with this topic:
Population – 5 people (A, B, C, D, and E)
A earns maximum and E earns minimum
We spend our income in ways depending upon given budget line, in this example our population has only 5 people in all, each ones spending is others’ earning. If earning of A is INR 100 and he has the propensity to spend INR 75, now I say B earns INR 20, C earns INR 15, D earns INR 15, E earns INR 25 from the expenditure that A makes and thus for others it can be evaluated in same manner. Saving & spending pattern of all are – A- INR 25 & INR 75 B – INR 30 & INR 50, C – INR 30 & INR 35, D – INR 30 & INR 25, E- INR 20 & INR 10.
Due to imbalance in spending at each level, there is inappropriate distribution of money, to rectify this balance if I say each person spends 60% of his earning and others depending upon the skill would earn from each others' spendings there may be equilibrium in the society. To spend 60% by each person, the price percentage can be set rather than a fixed price for all groups
E.g.
To buy a Car named “cabby” each person from A to E is charged 10 % irrespective of his income.
Disclaimer: This article being my thinking does not intend to hurt any ones feeling
Population – 5 people (A, B, C, D, and E)
A earns maximum and E earns minimum
We spend our income in ways depending upon given budget line, in this example our population has only 5 people in all, each ones spending is others’ earning. If earning of A is INR 100 and he has the propensity to spend INR 75, now I say B earns INR 20, C earns INR 15, D earns INR 15, E earns INR 25 from the expenditure that A makes and thus for others it can be evaluated in same manner. Saving & spending pattern of all are – A- INR 25 & INR 75 B – INR 30 & INR 50, C – INR 30 & INR 35, D – INR 30 & INR 25, E- INR 20 & INR 10.
Due to imbalance in spending at each level, there is inappropriate distribution of money, to rectify this balance if I say each person spends 60% of his earning and others depending upon the skill would earn from each others' spendings there may be equilibrium in the society. To spend 60% by each person, the price percentage can be set rather than a fixed price for all groups
E.g.
To buy a Car named “cabby” each person from A to E is charged 10 % irrespective of his income.
Disclaimer: This article being my thinking does not intend to hurt any ones feeling
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