 Hello and welcome. You're watching News Made Easy. I am Anindya Chakravarty and today I'm going to teach you how to get super rich So that these gold coins shower or new as well Well for starters, the first thing that you have to do is that you have to be born rich Well, there's no other way out Let me tell you you have to be born rich to get rich in India Or you have to be extremely lucky or you have to be a wheeler dealer who takes some Politicians black money investors and then make some money out of it Otherwise, generally, it's only those who are rich who can get rich. Sorry about that. This formula isn't great But still let's try and understand how that happens. But before that, let me give you some facts from the COVID here We know that what happened during COVID most people their income went down many people lost their jobs Many people took pay cuts many people had to work longer hours because Other people were sacked and they had to fill in for them So life became much tougher for even the relatively affluent upper middle class But what happened to the rich? The rich actually got richer Just look at this number the top 100 billionaires in India if their total wealth the additional wealth that they got in the COVID year Everyone's wealth reduced these top 100 billionaires their wealth wealth increased And if you take that extra money that they made in 2020 the wealth and Distributed it amongst the lowest 10% as in the poorest 10% of India They end up getting about a lakh each one close to one lakh rupees each That is what the poorest people will get if the additional wealth made in 2020 By the top 100 billionaires is taken and redistributed Those 100 billionaires still remain extremely rich It is just that in a bad year their money is taken and redistributed the top lowest 10% of people will end up with between 90 to 1 90,000 to 1 lakh rupees alright forget about the top 100 billionaires Let's just look at the top 11 billionaires the additional wealth they made in the year 2020 That was taken away and invested in India's rural employment guarantee Scheme which is Mandrega right which gives work to lots of poor people in villages That can be run for 10 years that can be run for the next 10 years if just the Additional wealth added by the top 11 billionaires in India was taken and used That's the scale of additional money the rich have made in a year when the economy is done badly by the way They have not really done anything It's not as if these people have invested more taken more risks sold more been very entrepreneurial and made more money No, they just basically in the middle of the Lockdown made more money. That's all that happened. All right. That's because they were rich Okay, this is the first part the second part is That we all say that you know the entrepreneurs business people they take risks They take risks and therefore they deserve the money that they make because and a regular employee someone who has a salary job What do they do? They go to work. They do their work. They come back and the end of the month They get a salary of course We know sometimes that doesn't happen as we saw this year people have to take pay cuts the jobs were lost They have to work harder in many cases will come to that work Hard work part as well, but let's look at the issue of risk. Is it true that business people the rich business people actually take risks? In India that is absolutely not true Because take the case of how a business a big business is run a big business when there's a big project What do they do? They either raise money from the markets, right? Which is the public the public puts in their money. It becomes a public's risk or they go to bank and take a loan Let's assume that a Project costs 100 crore, right? It's a big project 100 crore rupees is going to be spent on that When a businessman goes to a bank the bank says how much are you putting in into this project? The if the cost is 100 crore how much are you going to directly put in what is the equity that you're putting up? How much skin in the game do you have and the businessman says that? Oh, you know 20% is what I'm looking to put in and 80% is the loan that I'm going to take and of course I'm going to pay your interest. I'm going to repay everything now What does the businessman actually do and they said there are innumerable cases of such behavior in India They gold played the cost. What does that mean? That means that instead of showing the actual hundred crore cost They say my cost is actually 125 crore so they go and say 125 crore is my cost, right? Remember actual cost is 100 crore if the businessman truthfully went and said that this is my cost Give me 80 crore as loan. They would have to put up 20 crore So what they do instead is that they go and say my actual cost is 125 crore right 125 crore and I am going to put up 20% of that which means I'm going to give 25 crore So I'll need a loan of 100 crore, right? This is all accounting jugglery. That's done The banks is okay 25 crore is 20% or 125 and 100 crore is 80% or 125 So here 100 crore take that. What is the risk the entrepreneur has now? Zero, right? If that project fades the banks come and say pay back. They say oh, I'm bankrupt I can't pay take my company Take the assets that I've built here sell them. How does it matter to me? I have not spent a penny. If this had worked out, I would have made money I would have made profit on zero investment mind you because all of it would have come from the bank But here I have nothing to lose. There was zero skin in the game In fact, there are many cases where when banks went to take over companies or take over the assets What they found is that the entrepreneurs have actually used front companies To take these loans and push it out into other projects Which had nothing to do with the original company which got the loans and there's no way to get that money back We know of innumerable cases where loans have been virtually written off Why because they they can't be repaid they become bad loans and Out of the hundred rupees that was taken five rupees is being repaid to the bank That is what is happening ten rupees is being repaid to the bank What has happened to the entrepreneur? Zero nothing has happened to the entrepreneur If you cannot prove that there's been any malpractice Nothing happens to them. They continue to be rich own ten houses own private jets private You know travel around the world and continue to be give sound bites to TV channels and courts to newspapers And I call the great captains of industry despite losing public money Despite losing money of the banks they have zero risk most often they take very little risk. Okay, that's the issue of fear Yes, you'll say that there are that's not true for everyone. Yes, that's not true for everyone But it is true for most Corporates in India that is the reality. That is why we have this ballooning Bad debt which has continued to increase not reduced in the least bit. All right now. Let's talk about hard work people say Entrepreneurs do a lot of hard work. They have these great ideas. They do hard work They invest behind an idea. They work hard. They make profits and they give jobs to people Oh really do they really work hard or is it that middle management guy who works the hardest? whose children call up call him up in Or call him or her up at office and say when are you coming home? This I still have another meeting, right? I have to work on Sunday. I have to go after travel I have to go out of the city Those are the people who work hard and those are the people who pay when the top management Actually messes up and the company does badly and its revenues go down. It messed us to make losses. Who loses the job? the middle management The lower paid people and the workers in the factories. These are the people who lose their job The top management takes pay cuts, but they protect each other So the rich continue to protect each other. They never lose job they move from one company to another and They're kind of rehabilitated even if they've lost corrows and hundreds and thousands of corrows in the business that they ran That is how the rich continued to save their skins That is how the rich continue to stay rich That is how the only way to remain rich in this country be rich invest in the markets And finally let me end with what happened in the stock markets. What happens in the stock markets? You put in your money. You're sitting at home sipping your cup of tea and your money is Going up. Only those who have a lot of money can take risk when the markets go down Sit back and then make money when it goes up. Those are the people who really get Most of the money made in our country is by the richest people. There are very few people in India stock markets and even there even in terms of mutual funds the number of people who have a Significant amount of savings in mutual funds is very little. Most of them have very small amounts of saving. So Look at what happened in the stock markets during COVID in March right before the lockdown began because of COVID The nifty went down to about 7500 right today. It is more than 15,000 So people sat at home and doubled their money without any Any risk at all while other people who'd lost their jobs Goto pay cuts had to withdraw their savings to run their homes The rich simply put their money in the stock markets and made money The big corporates made huge profits because they cut costs. They cut wages. They cut salaries and Even though their revenues went out their profits increased So that is how the rich continued to be rich and that is why the rich continued to be rich in this country And that is why the rich control all institutions They control the media and they control everything unless you ask these questions You will constantly be told that private sector entrepreneurship. That is the best But right now you know it is not because you many of you have lost your jobs Many of you are thinking maybe the future is not looking that great. That's the show today Keep watching news click and do subscribe to us