Economics of Mumbai Attacks

I was small kid playing Cricket, one sweeping shot with bat in my hand and ball smashed next building glass window. Me & my friends ran away from there. Owner never knew who broke the glass window. He guessed it was some kid from next building.

Owner called glassier and probably paid 500 rupees to fix that glass window. Glassier made 500 rupees that day and he was happy. Owner lost 500 rupees. While owner was mad & busy fixing window, he decided to order food from nearby restaurant(no time to cook). He missed his daily evening walk and visit to temple that evening.

What would have happened to that 500 rupees if glass was not broken?

* May be owner wanted to buy some toys and clothes for his kids.
* May be if that money was part of his savings, he wanted to just keep it saved somewhere [may be under carpet or bank account]

This is important economics lesson. I tried relating it to Mumbai attacks. Terrorists comes and attacks Mumbai. They leave a strong proof that it was fixed by Pakistan. Indians get angry. US comes to India's help.

If now India goes on war with Pakistan. War begins. War ends. Lot of life lost and tremendous material loss. There is lot of man made disaster and India spends lot of saved money on recovering from it. While India is busy recovering(like the owner fixing glass window) China supplies all finished good[please don't buy tainted baby milk products]

India goes on war.
India spends.
China gets to manufacture and supply.
US based companies in China gets to sell stuff.

Cycle of Economics begin.

[above stuff was my imaginary analysis except for the glass window which I really broke when I was kid]

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posted by Nitin @ 10:54 PM, , links to this post