Gross measurement of economic domestic product[Part-4]

Today reality and investments have also become substantial part of  gross economic activity /product ,perhaps latest invention and newer chapter in developed economies hunger  to derive growth.

It add value to underlying wealth ,the land and its astronomical cost ,as it more situated nearer to heart to business center ,plus its unlimited recreational value ,construction material/services  e.g cement,iron,ceramic,electrical,internal and external decorators ,labor and mineral cost.
The financial sector consists of stock markets,banking,investment ,mutual funds ,insurance etc adds tremendous value to new age economies ,capital has now not just remained sum of savings ,but ever expanding horizons directly linked with creation of wealth,than melting it into capital for investment in any sector but particularly reality and stock.
The shares are distribution of capital of modern form of business organisations /companies to anyone i.e individual,promoters,FII,DFI,MF,insurance,P.F funds,pension funds etc ,anyone can own shares but not business ,they are run by promoters and directors but value of stocks by speculations can go to any high and wealth could be generated to any extent. 
Further total stock market capitalization has grown more than that of G.D.P considered normal and country gross domestic product may go on increasing or not, stock market capitalization can go anywhere ,placing them as collateral along with land parcels can generate huge loans and capital available to reality firms.
Financing huge sums to real estate cause enhancement in banking /capital market activity to developer ad individuals.
Reality and stocks generates huge wealth and lot of economic activities in  financing,construction,insurance etc ,when all other segments of economy appears saturated ,these two sector opens up huge potentials to uplift economy ,but wealth generation by these these sectors are more so related to speculations and money be perfected by punters the average being at zero rate of interest lives on salary or pensions ,but these sector provides opportunity to some to double their money every year even when zero rate of interest prevailing.
Money supply in economy is controlled/boosted by printing currencies/buying and selling bonds by central bankers,further capital flows are now no more limited to boundaries ,capital become volatile and flexible ,it flows to any geographical horizon/sector etc ,where potential of return appears high,the mangers skills have enhanced tremendously and they have a sharp eye to take advantages of inefficiencies prevalent somewhere or to take benefit of arbitration opportunity in difference in interest/rate of return /growth potential etc. 
Innovations and productivity gains by technology and better management practices has become biggest generators of wealth,further the organisation have truly become international and strength of such big companies controlling market/technologies across globe has cultivated new systems/breed of managers and consumer benefited by way of products of international standards. 


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Create a free website or blog at

Up ↑

%d bloggers like this: