Skip to main content

A story from depression era

There was a surprise early morning today, it was our dhobi. He increased his charges by cool 25%. The inflation is everywhere! ok, jokes apart; I did ask him why the increase. The reply was rather surprising, lots of coal shops have closed down it seems and he just cannot get enough coal and it is becoming expensive. If something in your brain is ticking towards a great depression story, so did mine.

Just in case you dint know, there is a beautiful story (or may be fact) that highlights what happened in Great Depression.

Child: Mother, why is it so cold?
Mother: Because we dont have coal (to heat)
C: But why dont we have coal?
M: Because your father does not have a job
C: Why doesn't father have a job?
M: Because his coal mine shut down
C: Why did coal mine shut down?
M: Because there were no sales
C: Why is there no sales?
M: Because there is too much coal

Had totally forgotten this snippet.

Coal was an important industry during 1920s and 30s employing huge workforce and it did right into middle of century. Coal industry as a chief employer dropped when most of the tasks began to be automated and all-round technological improvements.

But that was 1930s. Cut to 2000s, replace the coal with service industry and puzzle fits in place. Tough times :(

Comments

Popular posts from this blog

Cognitive rules of business presentations

In his recent book, Clear and to the Point, Kosslyn explained that the four rules of PowerPoint are: The Goldilocks Rule, The Rudolph Rule, The Rule of Four, and the Birds of a Feather Rule. Here's how they work. The Goldilocks Rule refers to presenting the "just right" amount of data. Never include more information than your audience needs in a visual image. As an example, Kosslyn showed two graphs of real estate prices over time. One included ten different numbers, one for each year. The other included two numbers: a peak price, and the current price. For the purposes of a presentation about today's prices relative to peak price, those numbers were the only ones necessary. The Rudolph Rule refers to simple ways you can make information stand out and guide your audience to important details -- the way Rudolph the reindeer's red nose stood out from the other reindeers' and led them. If you're presenting a piece of relevant data in a list, why not mak...

Monetary inflation, Spiritual devaluation

Its been sometime I have been trying to make some special people understand the evils of inflation. Inflation is an abstract subject most of us dont know about, let alone understand the technicalities amidst jargons. I have in my previous post have briefly touched the social part of inflation but never in a concentrated way. I understand what my friends mean when they say "tell me in layman’s language." It is not a heartening sign, that they avoid technicalities. But it could well be that knowing where they stand, their role and understanding the social changes in the light of inflation may motivate them to understand the term "inflation." This is just to highlight the brief points. First and the foremost, is there any link between inflation numbers and society. Yes. The relation is same as the relation between society and money. What is money? Money is an easy means of exchange. If I am selling my horses to a pig-farmer and I am not interested in taking pigs in ret...

Unprecedented External Demand Shock Underway

India’s export growth averaged 24.8% over the last three years, driven by strong global growth. However, over the last three months, export growth has decelerated sharply. While until recently the strong demand from emerging markets including Latin America, Emerging Europe, the Middle East and Africa ensured that export growth remained healthy, over the last three months disruptions in the macro environment of these economies have been evident. Apart from weakening demand, exports have also been affected by the lack of availability of foreign trade credit and inventory liquidation. India’s exports declined by 12.1%Y in October 2008 compared with 10.4% in September and 26.9% in August. While we expect some improvement in the second half of 2009, exports are likely to be unusually weak over the next six months. We now expect exports to decline by 5.3%Y in 2009 compared with 12.7% in 2008 (estimated) and 23.1% in 2007 Excerpt source