Spending make the economy get rolling smoothly. It is the oil for economic growth. In India, people are very proud that because of their buying using cash (and lot more credit), they are responsible for the Excellent Economy. In a sense, it is true.
However, my point is where the limit? If one person buys five plots of land and three apartments, the earth is not expanding by miles, so what is the point of blocking the resources?
The simple reason for land price hike is for one land the owner gets many bids. Now it is the seller market. In my view, people in India were not used to this type economic bubble. The sudden economic growth in India left its effect on its cultural, social and emotional fabric. People have started searching their identity by gathering wealth and young people are now just careless.
China is maintaining its status by providing made in china brand and producing goods for the rest of the world. They have also enjoyed the economic bobble but less as compared to India. Chinese government being the largest trade partner of USA, has more control of their country. Even though it is a communist country, it has created controlled pools of growth and development in large cities, so that the rest of the country can have a sustainable growth and lifestyle. The current growth of China is due to the increased productivity of these cities that are in constant scrutiny of the Chinese government.
China took the advantage of the Global wealth in a positive way by taking right decision at right time, the result is in current economic situation (recession) the country is still managing(I am optimistic for China). In my view, there is an entrepreneur in each Chinese family.
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