Team-BHP - Understanding Economics

yup but still everything went completely opposite, people have taken so much credit.

A friend bought a house in Brampton in 2016/17 for 600K, he paid 200K and got 400K financed, in 2021 his home was appraised over 1,5 Million so he got another 800K on his home, paid 20% towards 2 new properties. These new properties were appreciated even before the construction had started.

Some other guys will invest in such properties at higher rates. So, they will pay a premium to the person who had originally booked like my friend above. This premium can be 200K but payable at the time when the house is ready or say 100K if it’s paid now :) they call assignment sales here.

Many property dealers and others have got themselves into such sales, promising 200K or using funds from their HELOC ( home equity loan) and buying transfers outright for such under-constructed properties. Now after an increase in interest rates, not only property prices are coming down but due to inflation and lower approvals by Banks, the construction of many of such properties itself is a question. This may end badly here in Canada, especially in GTA.

https://www.orea.com/News-and-Events...signments-RECO

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Originally Posted by Samurai (Post 5338664)

Envy the economic success of South Korea? Well, don't.

https://www.youtube.com/watch?v=7a9n_9OHzHk

In another 10-20 years, India may run into the challenge having too many white collar job aspirants while most jobs available are blue collared.

It could be already happening, but our huge population is coming to the rescue.

Aren't we already there?

In 2019, I happened to work in a small startup dealing with textile machineries at the local industrial estate.

It was very difficult to get any machining work etc done thanks to the lack of manpower in many of these industries- basically a lot of workers found that being a Swiggy/Zomato delivery employee had more pay than being in the industry. This was because big car companies have forced their lower level suppliers to have margins so thin that employee salary becomes unbelievably low.

We also seem to be moving in the same direction as Korea- promoting big companies more than the smaller ones, promoting long hours at work and allowing companies to become too big to fail.

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Originally Posted by Turbohead (Post 5368896)

We also seem to be moving in the same direction as Korea- promoting big companies more than the smaller ones, promoting long hours at work and allowing companies to become too big to fail.

South Korean PPP income is 6.5x that of India. If we were to truly become like South Korea, then that would count for an achievement unparalleled in human history. What you are seeing instead is crony capitalism and inequality catching up with us.

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Originally Posted by v1p3r (Post 5369046)

I assume you saw that video - the author is talking about a society that has become way too toxic thanks to these big corporations which have become way too powerful even for the govt to change. While everything looks good there, it's ridiculously hard for the next generation as 20% of the jobs are created by these corporations which produce approximately 70-80% of the GDP.

If Maslow's law of hierarchy is to be taken seriously, South Korea has honestly achieved the lower tiers but people will never feel a sense of fulfillment in their lives thanks to the toxic culture of their society which we somewhat are going in the direction of.

I'm by no means saying that South Korea is not successful but their methods is far from perfect.

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Originally Posted by Turbohead (Post 5369215)

Sir, I agree with you on SK's situation. I do not agree that we would be better off without it. It's like someone who lives in Dharavi saying they don't want to be Anil Ambani, because of his debt. We haven't even fully climbed onto Maslow's pyramid.

If and when we get to a place where all our fellow citizens can go to bed without an empty stomach, live in a clean home, and have access to universal and free education and healthcare, we can start to worry about such things. Until then, I would gladly accept SK's fate.

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Originally Posted by v1p3r (Post 5380408)

Be careful what you wish for. Have been to South Korea multiple times on work and have directly worked with South Korean engineers for decades now, I can tell you they are saddest, most frustrated types I have met in my life. A slave is a slave even if you are in cage made out of gold.

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Originally Posted by v1p3r (Post 5380408)

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Originally Posted by JediKnight (Post 5380574)

From what I have read and understood (very limited view), SK's model of development is not what we need or should wish to have.

What we need is an improvement in our development plan. Believe it or not, we grow at a slow pace but everyone grows in India. While we still have a lot of scope to grow and need it too, I wish we continue on our own unique growth trajectory but only at a faster pace and correct what is wrong with it - corruption and limit 'free' access to education and healthcare only.

The current count of white collar workers in India is less than 2 crores.
The current count of blue collar workers in India is around 40 crores, give or take a few crores.

That is why we are not facing South Korea's problem yet. However, kids of lots of blue collar workers are getting educated rather well. I often talk to Uber taxi drivers about their kids, and practically everyone says their kid is either studying in professional college, or planning to do so. BTW, my cook's daughter is preparing for IPS since a year at some coaching college. All the kids of farm workers I knew growing up are all now graduates and working in top companies. Just last week I was talking a guy, who used to be our farm hand, his mom too was our farm hand, but his daughter is a MBA. As a rural employer for 16 years, I used to hire plenty of graduates who were kids of blue collar workers.

Considering we have so few white collar jobs compared blue collared jobs (1:20 ratio), even if 1 crore kids of 40 crore blue collar workers enter the white collar market (and they will), there will be very high unemployment. Hopefully, many blue collar jobs will vanish and there will be many more white collar jobs. It happened in the 90s when India entered IT revolution.

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Originally Posted by Samurai (Post 5380635)

...All the kids of farm workers I knew growing up are all now graduates .....even if 1 crore kids of 40 crore blue collar workers enter the white collar market (and they will), there will be very high unemployment...

Unfortunately, farming is a low paying job (for most small time farmers) and the future generations of farmers are going away from this important profession (with skills handed over from generation to generation).
There is going to be a huge food shortage in our country in the next 20 to 30 years for sure with huge scarcity of farmers (with age old skills)

Colleges are doling out degrees in such huge numbers producing graduates for 'white collar jobs' with no emphasis on real skills.

Quote:

Originally Posted by JediKnight (Post 5380574)

Do you think their life is worse than the farmers who commit suicide when the crop fails? Or the manual scavengers who have no other options when it comes to feeding their families? I am extremely privileged, but I am aware that most of my country is not. I am very sure that a vast majority of Indians, whose income is considered pocket money in developed nations, would happily swap places with any 'corporate slave', be it in India or globally. Some of my confidence in my statement comes from having worked with such people, both professionally as well in my personal charitable endeavours.

Quote:

Originally Posted by Samurai (Post 5380635)

However, kids of lots of blue collar workers are getting educated rather well. I often talk to Uber taxi drivers about their kids, and practically everyone says their kid is either studying in professional college, or planning to do so. BTW, my cook's daughter is preparing for IPS since a year at some coaching college. All the kids of farm workers I knew growing up are all now graduates and working in top companies. Just last week I was talking a guy, who used to be our farm hand, his mom too was our farm hand, but his daughter is a MBA. As a rural employer for 16 years, I used to hire plenty of graduates who were kids of blue collar workers.

I see a similar pattern. About 30% of the people in my team are first-generation college educated, with many of their parents being rural farmers. Strangely, they don't seem to think that being a desk jockey or corporate slave is worse than being a farmer. You are right in that we are not scaling meaningful employment opportunities fast enough. To add to our woes, our education system is woefully substandard, focused on churning out 'graduates' instead of any real education. We will have a deadly reckoning in a decade or so, by my estimate.