Media won’t tell you this!
These days when quaterly economic figures are coming out, everything seems going down in terms of economic growth
“Economy is doing Fine. Jobs are doing fine. Industries are doing fine….”
Said by a famous ‘journalist” on air after GDP figures were out.
India reported a massive de-growth of massive -23.9% in the first quarter of 2020 (Apr’20-Jun’20). The economics experts were expecting this figure to be 5–10% (minus) but the figures came out haunted everyone. Fuel to the fire will be added if we consider the unorganized sector which was not just worse hit by the pandemic and lockdown, but also contributes to over 90% jobs in India!
Despite, the massive downfall in economic growth, the Indian media is busy defending the Indian Govt over the figures.
One lie they keep on showing over & over again is this
They suggest that the “Economy is doing fine” as even The US is massively hit by -33% contraction. This way they are spreading another propaganda to the naive audience who does not understand the basic technicality of GDP growth calculation
If this is a lie then what’s the truth?
Devil is in the detail
How The US and India calculate the quarterly economic growth is the key to the answer.
Let me explain it this way
In India, we calculate our economic growth based on comparison of same quarter in last year. For example, in Apr’19 to June’19 Indian GDP size was $100 and in Apr’20 to June’20 GDP size is $105, then it is said to be 5% growth. In later on combining all 4 quarter, year on year growth is calculated.
But in The US, it’s different.
In The US, economic growth is compared with previous quarter. For example, In Jan’20-Mar’20 US GDP size is $100 and in Apr’20 to June’20 GDP contracted by $9 then there is a 9% de-growth in economy. Then they assume that for the rest of 3 quarter economy wil be contracted by further 9% and by the end of the year total contracted will be 9x4= 36%
This 36% (32 actually) is shown by Indian media as the GDP contracted in The US compared with -24% of Indian contraction
The story is simple, you can’t compare Apple with Oranges. Unless you have to run a propaganda to defend the ruling party.
