LOVE LETTER OF AN ECONOMIST (ENGLISH VERSION)

My Economics like dear,

I believe in the fact that you love me as Robbins Uncle believed in his theory of wants and needs. Your love is an assumptotic function which can never be zero and one day the curve of your love will rapidly grow and will make hockey shape curve like marginal cost curve because the supply curve of my love is horizontal at the time showing infinity, means its slope and rate of change is zero. You can trust me as gold standard money is trustable.

 Maybe, now, the graph of circumstances is showing my love as short run function, but I assure you that I shall provide appropriate circumstances to change it into long run function and shall produce the love according to your demand. I promise you that I will invest my love and it does not matter to me that how low your return rate is (see I can leave rational behavior for you) and if you would give me appropriate return for my investment of love, I will again invest that return because my MPI (marginal propienciety to invest) is equal to one at the moment and this is how we can, in the consequence of multiplier effect, produce love to infinity and we together can increase the love level in the economy to get equilibrium point of love in the economy and in the world. As you know that I am a big fan of Lord Keynes, so I want to apply it on macro level instead of micro and in this lies the existence of our economy and world.

 I have a dream that we both create perfect competition for lovers where the combination of lovers would be on the point where demand and supply curves o both would intersect. There would be monopoly of lovers in the market and barriers on the entry of rivals and they would have to bear the loss more than average fixed cost on entrance and they would have to exit.

 More than that I assure you that I will keep you happy because I am a rational person and keep in mind both cardinal and ordinal theories of utility maximization. I would, for you, increase my MPC (marginal propienciety to onsume) to one. I know that the rate of your love is of progressing nature, which increases with the increase in income, so, I have decided to increase my income through black marketing, smuggling, corruption, profiteering, and tax embezzlement and fraud to satisfy your demands.

 And before that my taste and habits change or I and other lovers make cartel and decrease supply of love because of high demand (in consequence of which it is predicted that the price of love will increase to double from one to two hearts and yet Islam allows for four) and government may impose tax on the activities of love, due to increasing trade deficit, you will have to think about my proposal.

 This is a hypothesis of mine which can be converted into the theory if you marry and we may create a model. Now, you must accept my proposal because you are a big fan of models.

                                                                                                                        Only yours,

                                                                                                                        Allocator of love in a better way

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Facts about Love

When I think about love, many questions come swarming in my mind and I found it very much difficult to answer them. I want to share them:

1. How can you ignore love and care, which your family is giving an idiot like you without any reason, from 15 to 25 years and you prefer your 1 to 3 year old baby love? does it make sense to you?

2. It is said that true love gives happiness. Are you happy due to your love or your love is nothing but a mistake?

3. How can you fall in love with a person, who has all human necessities and activities with him? Why donot you think that your love has intestines in his belly, blood and flesh in his body, or that his nose also flows atleast in flu? I can say more but I would not. you might be understood by now or simply think.

4. Can you find me a single person who after taking step in professional life or after starting a job fell in love?                       

    According to Faiz Ahmad Faiz Sahib:

          Dunya ne teri yad se baigana kar  diya (World has made me forgot missing you)  

          Tujh sa b dilfrareeb hain gam rozgar k (Earning problems are more beautiful than you are)

5. Why all of your family should suffer for a mistake of yours, namely, love?

6. In the environment we are living; media, no doubt is playing an important role, yet, it is spreading misconceptions about love. Can you think not to touch or kiss your love? i know it is possible, but you will definately want to touch your love. It is blessing of media.

    Love is:

          Mohabbat mun ka kurb ha, tan ka kurb mat mango (Love is the closing up of hearts, not bodies)

          Jisay  chho  liya  jaye  ussay  poja  nahi  kartay (A person you have touched would not be worshipful)

 

It does not mean that i donot belive in love. But realit is reality. I respect true lovers, but i have failed to find a true lover in this modren age. This age gave us so much but snatch love away from us.

                                                                                           Sarfraz

History of Pratha(Oiled Bread)

                       Pratha

The history is somewhat unique and interesting due to the naming incident of pratha. The very first pratha was made accidently by a Rajput family cook, when he was not aware, if the dough slips from hands into the oil, the thing which would be produced would be calld pratha instead of bread.

The naming story is quite interesting and began when he served that oily bread to a guest who pass the comments: pran tha(a rajputi expression means take it away). Latter on it changes to pratha.

Note:The above story is based on non-factual facts and fiction and only is written for fun.

                                                                                                         Sarfraz

Luxry and Necessity

It is observed that a luxury converts into necessity over time. People want a luxurious life so they keep trying to earn more and more. As their experience in a specific field grows, their earnings also increase. As a result, their purchasing power increased now they are in a position to enjoy some more   luxuries. With time being, these luxuries become a part of their ordinary life course and become necessity for them. Although there involve some other factors being discussed hereunder:

1.    The price of luxuries may fall over time making it easier to afford luxuries for people. There are so many factors which may affect the price of a luxury and are as under:

a)    The first and most likely cause is technological progress which makes it very much easy, cheap and efficient to produce a luxury.

b)    The second reason is profit margin in luxuries which may induce other companies to enter in the market and produce the goods of same nature. This may create competition. Competition may affect the price dually:

i. Advertisement and sales promotion activities may increase the cost of the goods sold, as the result increasing the price of luxury.

ii. To remain in a stable position in a competitive market, the producer may offer less and suitable prices, better terms and conditions and improved quality goods to the consumer. The demand for luxuries is highly elastic, so the demand of such products may increase rapidly.

c)    Normally, inflation does not affect prices of luxuries much because of highly elastic demand. Although the price of goods do not increase in real terms due to inflation but consumer consider it as increase in price in real terms due to physiological effect. So, producers are reluctant to increase the prices of goods except in extra ordinary circumstances. As a result the value of money declines but the prices do not increase so it affects the prices inversely.                                                                                        

2.    Now day’s different financial institutions e. g; banks and installment businesses have made it very much easy for the people to afford luxuries. We may take the example of car leasing schemes in Pakistan from many banking and financial institutions.

Thus, for the reasons discussed above a luxury becomes affordable and necessity for the majority of people living in that economy.

When a good has become necessity:
At the stage where a good has converted into necessity from luxury, government may impose some price restrictions and may decrease taxes on the good. So the price of the good may further decrease due to this fact making it yet more affordable for more people.

At the stage, the profit margin is this much low that some companies my retreat from the market and other may reduce the advertisement and sales promotion expenses to increase their profit margin to some extent. At that stage the advertisement and sales promotion expenses are not necessary but a burden because consumer is very much aware about the characteristics of good.

The price of the good remains stable for some time and then it may increase due to lack of competition and inflation factor.

However, it is quite unpredictable to announce the time duration which a luxury takes to become a necessity.

Examples in Pakistan’s economy:
The following examples may not fulfill all the essentials of theory discussed earlier but these are the things which have almost converted in the necessity from luxury. The deficiency to fulfill all the requirements of the theory of these goods may be is the weak economic and financial structure of the economy of the Pakistan.

Personal computers, Mobile phones, Cars, etc,

                                                        Sarfraz