When the Means become the End
Growth divergence gives way to distortion of prices. Of course, this is not a new discovery; however, if the reasons behind this, if explored could throw light on the underlying issues, and further may give clues to deflect inflationary/deflationary tendencies in the economy. Our GDP is a constituent of the total value of productions from the eight sectors of our economy, namely: 1) Agriculture and Allied Activities, 2) Mining and Quarrying 3) Manufacturing 4) Electricity-Water and Gas Supply 5) Construction 6) Trade-hotels, transport and communication 7) Financing, insurance, real estate and business services 8)Community, social and personal services. These activities may further be grouped as Commodity and Non-commodity producing activities, where the first five belong to the former group and the rest to the latter. Expectedly, the two groups should maintain a sort of harmony in their respective growth rates lest if one wants a distortion in prices. For example, ...