Varavu Ettana, Sellavu Patthana, Bakki Thandana Thandana!!!!

This is a famous song from the ever green Tamil movie "Bhama Vijayam". This movie was released in 1967, those times when there was no fears of recession, big salaries or layoffs. What makes this song relevant now? The fact that this is relevant at all times. Much more now. For simple reason that that consumer's purchasing power was always overtaken by the market's consumer buying behaviour in the recent decades. The buyer behaviour was never in the means and limits of the buyer's purchasing power after the plastic money got its predominance.

The Plastic money or the easy credit laid a bullish impact on the middle class salaried income group who started to spend more than they could actually afford. This does not have a wider impact on the business or the high income groups nor on the low income groups who survive on daily wages and other sources of income. Almost 60% of the spending group comes from the middle layer and this is the layer that is struggling to make both ends meet as the economy and subsequent recession impacts started to show its devilish realities. Cost of living has been increased, inflation floated around 12% and standard of living of the people in general became more high due to the increased consumer's buying behaviour. If 6 out of 10 could afford to pay a price "X" for a product, which other wise could only be sold at "X-1", the seller tendency would be to aim for X or X+1 and this is the chain reaction on what we are seeing in the domestic markets today, be it consumables, food products, perishables or even household goods- everything coming up with inflated high prices.
All is set and done till this segment is hit by recession drastically. Consumers should understand that it is not a situation which has to be blamed, nor we expect the global markets, banks, economy or the government to be held responsible for this dire consequences of the spending habits of the common man. The common man should understand what is his limits and learn to live within the means. Otherwise, it doesn't stop you from singing- Varavu Ettana, Sellavu Pattana, Baki Thandana, Thandana, Thandana!!!!
Let me write more on how this plastic money is actually impacting our pockets!!!!- with more proven statistics on the credit cards management in India.... in my next post!