Money Theory

One day I read a theory that an ordinary person cannot generate money or cannot destroy money. It can only be transferred from person to other...

So if a person become poor then it should mean that money have gone from the person to another person.

And if a person become reach then it should mean that money have arrived to the person.
Sometimes I wonder when every common man is shouting over inflation  and getting more and more poor due to this inflation.... and at the same time how Rich corporate houses are showing there balance sheets in increasing Net Profit....

This clearly means that....Rich people are getting more rich because... Either Goddess of wealth 'LAKSHMI' is generating money into their account automatically or they are earning it from somewhere.... AND.... Poor people are getting more poor because.... Either money have started disappearing from their pocket or someone is charging them a lot....

If I can connect these two statements together then it clearly means that.... Rich people are getting richer because those people are charging poor people a lot....

Then I thought of debugging this issue more.... I read a news that IPL (Indian Premier league) has worth of Rs. 30,000,00,00,000/- [cant figure the exact amount :) , it is 30 thousand crore... And all business groups who are attached to this game are getting more and more rich....

So I tried a simple equation... If any food production company make a deal with a batsmen to show its product logo on its bat for approx. Rs. 10,00,000/- per match.... And if that person plays 20 matches approx then he will earn Rs. 2,00,00,000/- and if this deal is done with all 100 IPL players then it will cost the company a whopping Rs. 200,00,00,000/- [two thousand crore]. If the Food product sell its beverage product into stadium on a higher price say Rs. 25 for Rs. 10 product, even after this effort it will not able to get is money back for this advertisement. Even after this expediture when you see company's balance sheet you will find out that company's net profit have increased in latest quarter results...

So the question arises how a company earns the money to make profit even after this big expense... So I tried to find out company's other income sources... As company deals into food product manufacturing.... so the company produces many other kind of food products... like wheat, fresh vegetables, medicine, edible oil, etc...

And a common man who is not watching IPL or not drinking company's cola into the stadium buys these other products for its daily use... and he complains about inflation in this products... as we all know...

So doesn't it mean that the company who is producing all these other goods have increased cost of these other products who are mendatory for every person... And as the company know that it doesn't matter that the common man watch IPL or not but he will definately buy vegetables for its daily use, so company should increase cost of vegetable... so it can earn more money and pad up all the expediture it made into IPL matches.... And make increasing NET profit in each quarter...

It clearly shows... that on one end rich people are showing us Cheer-girls and great IPL matches so that we can forget everything and watch matches... and on the other end those people are charging more and more money from our pockets....