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The meltdowown economy problem and simplest way to solve it using gandhian philosophy with scientific understanding.

The only talk of the wolrd is "Meltdown Economy". Experts are all the way telling people that this may lead for a year or two. Even it is murmerd that " US becomes second USSR". The worst affected part of economy is Manpower. Each company is delcaring the cuts or Pink Slip to their chunk of employees.

Being Science teacher and researcher I personally feel there is need to answer the concern situation with gandhian philosophy and scientific aptitute. Presently, economists give very straight forward solutions for this meltdown. Infact, they are not solutions, they are defencive methods.

Effectivity of these methods sometimes give direct result in having "Liquidity" in hand but in practice it is slow poison for the current running business.

A few popular methods are:

Close down busines for a while
Slow down business (it may be a natural process)
Liquidate asset (Most popular measures)
Pink slip to employee (Generally junior gets it)
Sell off Inventory or finishe product at throw away price
Change business
Accumulate Gold wealth or easy liquidity instruments
Re-schedule loans and other payments
Slow down production and be defensive

Also certain bad methods :
Dont pay loans
Dont pay salaries in time
Dont pay credits
Slow down communications with business network
Unfortunetly, all busines concern treats economy as controlling factor to their business. Infact, it is your and social attitute makes or mars your business and not economy. Only certain high quality products do suffer due to economy slow down but the basic business works even in turmoil situations.

Today, all the news papers writes about the effect of economy meltdown. The daily news which I found in my local newspaper is of "Pink Slip to certain employee". Nearly all the major business concerns declared the cut in their manpower and number of young families are at threat as if they have no future.

Also company goes for liquidity. The way as explained, give liquid money to handle any concern situations in business.

I feel there may be more scientific methods to solve present meltdown problem.

Very first, change the idea that only liquidity is the solution. It is a defensive methods and not any solutions. In fact, it brings the structure of business in more segragated form and as per chemistry, any segragation structure is having more "Entropy" and hence less potential to do effective work.

Secondly, don't give pink slip to any one. Instead, let there be "Yellow Slip". Let the employee understand there is crisis and it is the time to work in group and not as an individual. Again science proclaims "higly structure group reduces the Entropy and hence more energy in business to do some potential work".

You may wonder about the how you will pay to employee? I suggest the social solution for this. This may not be digestable to higher salary employee but if they accept the business can run even in highest turmoil situations.
The solution is :
" Let top class officer shed their salary by 10% to 15%. Don't worry you will get your share back when business will float again.".

"Reduce the salary of juniors by say 20% to 30%. If any junior employee gets $5000 then reduce it to $3500". This junior employee is not jobless. At the end of month he do have money to maintain his family needs. He/She may not have enough money to enjoy the quality life but it is better to have mantained life than jobless life.

Third law of thermodynamics proclaims that to have usefull energy, you must reduce the entropy of the system. It also suggests to maintain cool temperature of the system.
This lay directly applies to any business.
To understand let us belive, your business is a box.

Now this box has a potential. i.e. the business. In business potential is always link with the Money. Profit is also counted by acquiring money. This money is having certain value. In meltdown situation businessman runs for "Money" or Liquidity so that he can acquire his immediate needs.

As explained businessman runs for "Value" attached to "Money" or Liquidity Instruments.
This value is nothing but the energy of the sytem i.e. business. If this value increases the system acquired more energy. To convert this energy into the potential and profit, you have to see that the entropy part of your business is minimum.

There is also one more factor, which helps in increasing the potential of your business, is "Temperature of your business". Temperture in science may attached to "Heat" but in case of business it is attached to the unwanted clashes, ego conflict, unwanted activities, individualism etc.

The business controller should see that the temperature of his business is minimum. He should bring coordial relationship among employee. By reducing salary of seniors and distributing to juniors will bring lots of respect for seniors in juniors. This will bring new brotherhood relationship in business and will definitely reduce the "Temperature" in business system.

End of Part I
Will continue with measures and methods to withstand business problems in present situation using scientific apptitute.
Contact : Sunil H. Ganatra, Nagpur, India.

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Comment by Balamurali Balaji on January 27, 2009 at 12:02
Dear Dr. Sunil H. Ganatra,

I have read your article in full and found you have given real, workable solutions for handling the economic crisis. Your solution to cut down 10-15% of higher-ups in the corporates would definitely is an example for Gandhian approach in solving the crisis. Had it been Gandhi as a C.E.O., he would have surely did that for the sake of the company he runs and surely would set an example within the Business community to follow the suit.,

Leaders and Business heads should try some sort of such sacrifices, strategies in line with Gandhian ideals so as to save people from the crisis. To show the world that they are true leaders.
Comment by Dr. Sunil H. Ganatra on January 27, 2009 at 5:21
Dear Mr Carlton Jackson
Thanks for your valuable comments on my article by name "Meltdown...Part I".
Sir, This is my first article on Internet particularly to touch any economic problem.

Basically, I am scientist and I feel this particular problem can be answered with understanding the "Scientific Rules". It is true that the article may not be understand by common man and I will definitely try to make it simple one.

Regarding Gandhian Philosophy for solving this problem. Gandhiji had a very clear cut idea about the "Trusteeship in business organisation". Gandhiji believed that employer should acquire only the required amount for his livelihood from business. Rest money is for all those who works in organisation. If higher authority accepts the downgrade salary for his lower class employees, it is one way of "Trusteeship" (distributing money amount all). Secondly business should run for the life of workers and not only to make profit. If businessman do not want directly to implement the trusteeship in his business he may do some thing like "Yellow slip" which has a taste of Trusteeship in business.

My point of applying scientific rules is like this:
We believe when you do work in unity with some known discipline the potential is higher and hence gives more work. (This is as per third law of thermodynamics). What is required is to work hand in hand and sharing the problems together.

As per thermodynamic rules, if the discipline increases in required direction the entropy (destructive energy) reduces and hence energy available for work (enthalpy) increases. Finally this enthalpy only comes from the potential which is generally fix. So to get maximum utility from our potential, one has to maintain strict discipline (in required direction) and concentrating the work without bringing any new conflicts and wasting energy in arguments.

The young employees in an organisation are generally having huge potential and to utilize the employer has to keep them in an organisation in this critical time. Only the required thing is to co-ordinate them with senior employee by effective communications, and bringing the "In crises bondage" among the employee with effective motivation.

Sir, This is my first article and I wish I will improve on it in my Part II

For providing the Video, your most welcome. Please send it if possible.
Comment by Carlton Jackson on January 26, 2009 at 22:26
Dear Mr. Ganatra:

I read your "Meltdown... part 1" with interest. I believe you have valid points but I also believe you have not expressed them as clearly as you would like. I would like you to be more specific in tying Gandhian Principles to your ideas.

I agree with almost everything you wrote but I also believe your training as a scientist and science teacher has led you to talk over the top of the average persons head.

The "yellow-slip" idea is good. I suggest also that you find a video copy of "Manufacturing Miracles" the story of Mazda's recovery from the 1975 gas crisis produced in 1987. Fantastic video explaining how to cope in bad economic times without releasing or firing employees. I have a video copy and if you are interested I may be able to figure out a way for you to view it over the internet. This is something that I have never done but may be able to do. I would have to work at it for a couple of days to see if it is possible, but I think it is.

In addition, I believe there should be some focus on the business offering meaningful service or product to address the basic needs of humanity instead of useless adult electronic toys. Clean water, nutritious foods, sanitation, shelter, and engaging/meaningful work.

Thanks and I would like to continue discussions on this issue with you. Feel free to email me.

Carlton Jackson
Comment by Dr. Sunil H. Ganatra on January 26, 2009 at 7:46
Please read and have your comment on this and let us find the solutions for the betterment of this globe.

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