What is inflation? - Rise in price of goods and services

What is the method India uses to calculate Inflation?

WPI – Wholesale Price Index is the method used by India to calculate Inflation. It was first published in 1902 and prevailed to be one of the most significant economic indicators to policy makers until 1970, in which, the developed countries replaced it by CPI – Consumer Price Index.

Effects of Inflation:

• Rise in price of Food and Energy
• Credit Boom (Borrowing as become much easier & cheaper)
  

• Domestic
• India makes more exports and thus, found way to expand their foreign reserves
• Rise in demand
• Fall in supply
• Fall in value of money
• Government & Private adapted increased spending habits
• Global Factors
• Developed countries make more Imports

How to tackle Inflation?

• Banning Exports
• Giving out Import Licenses
• Revaluation of Money (Cancel the previous devaluation)
  

My Comments:

Why do we need to be aware of Inflation? India is a socialist country. Not all people in India are equipped to deal with the increased price rates. The price of commodities does not always suppose to be reasonable. For instance, the price of milk arose because milk was exported and the foreign importers were ready to pay the milkmen more money than we pay. Consequently, our milkmen refused to sell milk to us unless we pay them what the foreigners pay. The true fact is, the milk for which we pay does not deserve the amount.

But in another sense, the milkmen have to get paid more because the inflation has caused rise of prices and he needs to pay more for purchase of other commodities such as food for the cows, and his personal necessities.

So what is the moral, inflation is caused due to gross greed in money. How could it be avoided is another question. The government has to be firm in limiting the exports and fixing the prices for local commodities. For example, the government should restrict export to some 35% and the rest 65% should be sold within in India @ a separate price without comparison to the goods exported.

Moreover, the Indian government has a problem in the method of calculating Inflation. It follows WPI method which was replaced with CPI method by almost all developed countries in the year 1970. WPI means Wholesale Product Indices where the calculation is made on the price of Wholesale commodities whereas CPI means Consumer Price Indices where the calculation is made on the price of the end consumer.

CPI is better equipped because, now-a-days there is a vast difference of cost between the Wholesaler and the End Consumer. This difference was caused by modernisation which is considered to be essential and unavoidable whatever the circumstance may be. It is reasonable because, upgradation is preferred rather than degradation. But whatever we pay prefer, from the results, it is clear that the society is degrading.

Who do I criticize for Inflation?

At this juncture, many freshers who have got their first employment in a foreign company or foreign based Indian company might feel happy. The reason is they are highly paid. An engineer in Tata Consultancy Services is paid better than an Engineer in Chennai Metropolitan Water Supply and Sewerage Board.

These highly paid freshers are those, who I’m going to criticize for causing Inflation. Having not much experience in economics and/or money management, most of them lack the significance of negotiating and proper utilization of money.

Finally one day, they have outnumbered the current civilization. Congrats. The previous civilization in India was money conscious because they counted each and every coin of money they spend. Recent trend has changed a lot with the invention of advanced banking technologies. Most people would not have seen money for months. Their salary would get credited in their Bank Accounts. They’d use online transfer to pay their rent, etc. They’d use their credit cards for purchases making practical usage of money virtually impossible.
So, you are not going to hesitate when someone asks Rs.100/- for only some Rs.70/- worth good. You are going to believe that he has rendered some sort of service for the extra Rs.30/- which of course he has not.

When these people are large in number, the merchants and service renders get accustomed to ask for more and finally are going to reject others who do not comply with because the merchants already have their clients.

Take this example for instance. Few years back, auto drivers used to crowd around customers even before we approach an auto. They had respect for customers and at least few auto drivers considered reasonable price for the distance covered. To make more money, they tried share-auto technique instead of bargaining and blaming.

The scenario at present is vastly different. Most auto-drivers won’t stop for you even if you signal them. It is the auto-drivers who fix the price, neither the government nor the customer. They prefer you to comply with. And if you don’t, don’t expect them to be negotiating. They’d ignore you because they have clients for themselves. Those freshers are their clients.
The government too have changed in recent days by introducing new buses @ higher cost. If you mind making a survey, you would find the difference in the class of people using the various classes of buses.

People with money power have thus played an important role in the cause of inflation thus making the distance between economically lower class and upper middle class further.
How do the affected people cope up?

Here, I need to tell you one of the most interesting effects of inflation: Availability of plenty of money. This availability has made borrowing easier and cheaper than before. With availability of lots of money, people artificial or natural, tend to lend it for some profit (interest).
It is a principle that, when something is available in plenty, its value depreciates. For instance, take water. Similarly, when money is available in large, its value depreciates and thus people prefer rather to get rid of money by spending it. So, the habit of saving money is not in practice. Instead, money is converted into shares, gold, technology, etc.

This problem could be tackled by revaluing money to an appreciated value.
The rupee value was devalued twice, since India as a developing country did more import than export and was suffering deflation. In 1966, unable to tackle the first major financial crisis the Indian government faced, it was necessary for India to devaluate the rupee value. In 1991, though it was not necessary, the PV Narasimha Rao government volunteered to liberalize financial crisis. India suffered such deflation and devaluation primarily because it viewed exports in a soviet view.

If devaluation is a remedy undertaken during deflation, likewise, the government should pursue the opposite as a remedial measure to tackle inflation.

• No teacher or other person employed in a private school shall engage directly or indirectly in any trade or business. In case of remunerative work like private tuitions specific written sanction of the schools authorities shall be obtained
• No teacher or other person employed in a private school shall engage himself in any political activity.
• It is the duty of every parent/guardian of a child to cause such child attend an elementary school.
• No school shall levy any fee or collect any other charge or receive any other payment a fee other than tuition fee (DONATION is illegal and punishable)
• Students could be punished only with, FINES, LOSS OF ATTENDANCE, SUSPENSION, and EXPULSION. They could be punished only my the Head Master/Mistress only after giving an opportunity to defend themselves.
• Each student should have a 9-10 square feet of room space in his class room.
• No students in excess (than that declared to Matriculation Board Director) shall be admitted.
• Schools should definitely have a RAIN WATER HARVESTING, PLAYGROUND and GARDEN.
• 9th STD students should not be taught 10th STD syllabus and 11th STD students should not be taught 12th syllabus. They have to undergo their respective syllabus only.
• 10th STD and 12th STD students have RIGHT to appear in the PUBLIC . The marks scored by them in their term examination, Quarterly, Halfyearly exams has nothing to do with it.
• Non-compliance with any of the above provisions may result in removal of recognition of the concerned school!

Wow! Almost every little thing I said seems to be in violation!

The Dad Effect
Who knew that fathers were biologically equipped to nurture children?
- CLAUDIA CORNWALL
Courtesy: READER'S DIGEST, AUGUST 2007

The time fathers spend with their children has increased considerably since the 1970s, experts say. Today’s dads seem a lot more closer to their kids than the dads of previous generations. With these changes, fathers are suddenly a hot topic for researchers. Everything – from their sweat glands to their play habits – is under the microscope. There’s more to Dad than you ever knew.

The Hard Wiring

ROSS PARKE, a Canadian professor of psychology, says it was always thought that mothers were hormonally primed to be parents, and fathers learned child-rearing culturally. However, says PARKE, “Fathers are better prepared biologically for parenting than we previously thought”. In several studies, KATHERINE WYNNE EDWARDS, a biology professor found that a father’s levels of the male hormone testosterone dropped in the weeks surrounding his baby’s birth. She also found that levels of oestrogen and prolactin, normally associated with females, rose.

Prolactin promotes milk production in women and stimulates maternal nurturing behaviours such as nest building in some species. ALISON FLEMING, a professor of psychology, found that fathers with higher levels of prolactin are more alert to a baby’s cry, and those with lower levels of testosterone feel more like responding to it. Second-time fathers have higher levels of prolactin and lower levels of testosterone than first-timers.

Dad’s Pheromones

Pheromones are chemical signals that can change behaviour, and all sorts of creatures – from insects to humans – emit them. They can stimulate behaviour as well as inhibit it. ROBERT MATCHOCK, an associate professor of psychology, thinks father’s pheromones may help to explain why girls reach puberty when they do. In a study of nearly 2000 female college students, he discovered that “women who grew up without their biological father in the household experienced sexual maturation four months earlier, on average, than women who lived with their biological father”. MATCHOCK thinks fathers may emit a pheromone that slows their daughter’s sexual maturation, something seen in other mammals and possible nature’s defence against inbreeding. His research was published last year in the American Journal of Human Biology. Next on the horizon are experiments that will directly test how girls are affected by the underarm sweat of their fathers, a rich source of pheromones.
“I cannot think of any need in childhood as strong as the need for a father’s protection” – SIGMUND FREUD

Dad Talk

NADYA PANCSOFAR, a graduate research assistant at a child development institute in North Carolina, USA, is interested in how children learn language. When she looked for research how fathers help, she found very little. But she discovered that dads may have a bigger role in their children’s language development than was previously suspected. PANCSOFAR and LYNNE VERNON-FEAGANS, a professor of education, co-authored a study of 67 toddlers who had two working parents. The tots whose fathers used a bigger vocabulary with them at age two scored higher on a language test a year later. The study did not find that the mother’s vocabulary significantly affected the results. “We are confident that fathers who use more diverse vocabulary have a positive impact on their children’s later development”, says PANCSOFAR. The research was published last November in the Journal of Applied Developmental Psychology.

Dad Style

Many “father” researchers are intrigued by the fact that dads have a different parenting style from moms. Whereas mothers like to soothe and calm down their children, fathers like to excite and stimulate them. Rough housing is a favourite playtime activity, and dads like to encourage their children to take risks – to go to the top of the monkey bars, for example. ANDREA DOUCET, a sociology professor is the author of Do Men Mother? – a book about stay-at-home dads. She found that this pattern is pretty ingrained even in stay-at-home dads. “Fathers redefine how we see parenting”, she says. “We tend to think of nurturing as protecting and holding on the child. What fathers do particularly well is promote children’s independence and let go in a loving way”.
When dad JASON PAVICH barbecues, for instance, he lets his ten-year-old son, JOSH, light the fire, as long as he is safe about it. The 32-year-old father is divorced and takes care of his son every other week.

Involved Dads

MARIE-FRANCE LECLERC, an elementary school teacher, has been on the job for 18 years. She says that the first time a dad come to help her out in the classroom was eight years ago, but dads are no longer a novelty. “The kids are so happy when they come”, she says. A 1997 US study looked nearly 17,000 students from kindergarten to Class 12 and found that there is a payoff when dads participate in activities at school, such as volunteering or attending regular school meetings, parent-teacher conferences and class meetings. The children get more A grades, enjoy school more and take part in more extracurricular activities.

Dads boost their children’s school performance in other ways, too, by reading to them or helping them with their homework. JOHN LENTZ, a busy pathologist in Toronto, with 11-year-old triplets, two boys and a girl, somehow finds time to help them, especially with their math. “Because they’re in the same class, they have the same homework”, he says. “If you don’t lose your cool and you try to be a positive, they really seem to appreciate it. They ask me, “Can we go over the homework as a team”?

For fathers, just spending time with their kids brings immediate as well as long-term gains. Children of involved dads are more popular, get on better with peers and are more empathetic, according to a research summary published in a 2002 Canadian study. It also found that teenagers with involved fathers are 80 percent less likely to have been in jail, 75 percent less likely to have trouble with the law, and less likely to become unwed parents. And girls whose fathers take an interest in what they do are more likely to stick with extracurricular activities such as sports, art, music and reading, according to a 2004 US study.

One of the largest and longest studies to show such benefits comes from Britain, where 17000 children have been tracked since their birth (all in the same week in 1958). In 2004, ANN BRUCHANAN, director of the Oxford Centre for Research into Parenting and Children, and colleague EIRINI FLOURI published the results of that tracking in the British Journal of Educational Psychology. They looked at children whose fathers helped care for them at the age of seven by reading to them, taking them on outings and taking an interest in their education. The children did better in school and later in life, were less likely to get into trouble with the police or to have mental-health problems and were more apt to form stable relationships.

“Dad’s involvement before the age of seven lays the ground for a lot of goodies later on”, says BUCHANAN.
Many fathers know this already. And these days, if fathers are away from home a lot, they can still spend time with their children, thanks to modern technology. GARY BOUTILIER has been in the military for 19 years and has a girl, ten, and a boy, 13. Recently, when he was on a six-month official tour aboard a ship, he stayed in touch with daily emails, video conferencing and a website where the family could post photos. He’s obviously developed a close relationship with his children. Says his wife, GLENNIS, “where he’s home, the kids won’t leave his side”.

KERRY DALY, a family-relations professor and the director of Canada’s Father Involvement Research Alliance, is heading up a five-year research project on fathers, with results expected at the end of 2008. DALY became interested in fathers in the early 90s, and since then has seen that the amount of time mothers and fathers are spending on child care and housework are coming closer together. “Fathers are doing more, mothers a little less”, he says.

DOUCET thinks that’s good news all around. “it ends up being shared parenting. In terms of the kids, it means they have two caring parents who can both take charge”.
Three Cheers for Indian Dads

Research done by REED LARSON, PhD, a University of Illinois sociologist, and SUMAN VERMA, PhD, of Chandigarh’s Government Home Science College and reported in the Indian Journal of Social Work, found Indian fathers more socially connected to their kids than US dads.

In the US, Larson maintains, fathers generally are absorbed in their working lives, and their job-related emotions often dictate their moods and that of their families. Indian men’s work and family lives were found to be relatively independent. They are more socially oriented than are American men. They rated their work time as more important than home life, but they felt less engaged, more content and in control of their time while at home.
According to Larson, adolescents in the US tend to spend less time with family; daughters rarely engage in personal conversation with dads. But in India, they “found that the male and female roles are much more clearly demarcated than they are in the US”. Indian dads, Larson found, do very little housework – much less than American fathers, and rarely have any handyman role at home.

But they “clearly reported being quite connected to their adolescent children”, Larson said. “A lot of kids, including daughters, reported having length discussions with their dads about all sorts of topics, including politics, philosophy, social lives, and the future”. – Adapted from News Bureau, University of Illinois at URBANA-CHAMPAIGN

I recently went to a movie "Dasavathaaram" in a theatre nearby. It is VIDYA Theatre, AC DTS, located at Tambaram West. They usually charge tickets somewhere around Rs.40/- and Rs.50/-. Since the movie was released only a few days back, they charged tickets @ Rs.100/- and above. Movie was released on 13-06-2008 and the ticket cost on 19-06-2008 was Rs.100/-

Inside the theatre, after the interval, I noticed these in the theatre canteen:

Tiger Biscuit Rs.10/- (usual rate is Rs.5/-)
Ice Cream Rs.10/- (usual rate is Rs.4/-)
Coffee Rs.10/- (usual rate is Rs.4/-)
Veg Puffs Rs.12/- (usual rate is Rs.4/-) and the quality is even worse
Pepsi, etc Rs.13/- (usual rate is Rs.7/-)
Water Packets not available
Available free water does not look hygiene

People are not allowed to bring in food from outside!!!

On the other hand, I found these problems in INOX, Citicenter, Mylapore:

I've been there some 3 to 4 times. During my last visit, I with two of my friends tried to get tickets for IRON MAN. The tickets actually had been sold out. Later I came out of the counter and a friend of mine reminded me of the Rs.10/- tickets.

But we have travelled some 30kms to this theatre. We have spent some Rs.200/- towards petrol and some Rs.30/- towards vehicle parking. For this reason, I hesitated to ask for Rs.10/- ticket for I thought that people would think I'm cheap. "So what" asked my friend and so, I asked in the counter, the availability of Rs.10/- tickets.

They laughed at me and said that it would be sold as early as 8AM each day. So I got out once again a lot embarassed. Just as we were roaming around the complex and the counter, some pizza worker working around came to us and asked us whether we were available to purchase some tickets for the movie KURUVI. He offerred me those tickets for a mere Rs.70/-. I thought it profitable since we were ready to spend some Rs.120/-.

But, here comes the problem. The ticket he was about to sell was a Rs.10/- ticket which was said to be unavailable. In my point of view, there was no wrong. But when viewed in the point of a socialist, it is exploitation.

My inquiry is this.

How would it be an exploitation or illegal.

Is it illegal just because the government is not going to get its share (THE TAX)!

Or is it exploitation just because the pizza employee is getting the major profit.

Another issue is that in INOX as well as SATHYAM, the mineral water they provide is costed @ Rs.15/- which outside the theatre will cost only Rs.8/-. The funny part is that, the bottles in the theatre have valid labels in them stating that the cost of the bottle is Rs.15/-. Might be the theatre officials had some kind of agreement with KINLEY!

Is this valid. Won't this amount to consumer exploitation. Moreover, the canteens in those theatres have a lot of items which a normal layman won't even think to purchase for the most of his lifetime. The JUMBO COMBO, the tasteless BURGER or SANDWICH, the useless PEPSI, or the costly MINERAL WATER. This is not what I eat usually. I usually have something cheap and simpler like a JAM-BUN (RS.5/-) OR PUFFS (RS.5/-) and I'd have some water which ofcourse is free of cost!

One more thing, I could not find the free drinking water in INOX and SATHYAM so far!

And these people are not allowing me to bring in eatables purchased outside. Ok then. Let them make those eatables available inside the theatre! Atleast WATER!

Now what are these people doing:

They are making me change my spending habits.
They are making me change my diet!
They are making me change my principles, ethics.
They are making me think that I was living a cheap life.

They finally will make me do all wrongs to earn money. And finally, what for am I going to expoit the society for this money? It is just to pump that money into their account.

In fact, they (I do not mean the theatres alone, I mean the modernisation in whole) are training me to make money (by whatever means) so that I could pay them.

Finally, if I am busted, I am going to say, "நாலு பேருக்கு நல்லதுன, எது செஞ்சாலும் தப்பு இல்ல"! It means that whatever we do is right if it is done for the good of others!

Who are those others?

SPENCER PLAZA
CITI CENTER
INOX
SATHYAM
RELIANCE FRESH
MORE
SARAVANA BHAVAN
ADYAR GATE
TAJ GROUP
and so on...

My question is this,

Does the government mean, "CHARGE THE PEOPLE HOW MUCH EVER YOU WANT, IT IS LEGAL IF YOU PAY THE CENTRAL AND STATE GOVERNMENT(s) A 12.36% SERVICE TAX AND A 2% EDUCATION CESS"

It seems they were bored and were resting in the balcony watching the transiting traffic through the Velachery Main Road. These were the details approximated:

Note: Please note that in Chennai, it is a rule that two-wheeler drivers and pillion riders are instructed to wear helmets failing which, they might be penalized. And only 2 people could travel in a 2-wheeler. The third person could be not above 14 years and that's the limit. Car driver and passengers need to wear seat-belt during the ride.

Now here is the data,

326 of 819 people surveyed were drivers were not wearing helmet
213 of 819 people surveyed were pillion riders who did not wear helmet
32 of 819 people surveyed failed to wear helmet as well as they were travelling in 3-6 members per two wheeler
236 of 819 people surveyed were drivers who were wearing helmet (Good)
2 of 819 people were the only driver and pillion rider in a two wheeler both of them to wear helmet (congrats)
Some 10 out of 819 people were confused. So they kept their helmets above the petrol tank!

I actually doubt whether my country is following law. My grandma usually says "ஒரு பானை சோத்துக்கு ஒரு சோறு பதம்" It means, a grain of rice in a pot is a sample for the whole pot of rice.

According to above data, 69.71% of the surveyed people were offenders.
3.9% of them are severe offenders since they did not wore helmets as well as they travelled in triples or more.
29.05% were good to have followed law to the practical extent possible.
A mere 0.2% were coping with law to the most possible extent. I really am proud of them.
And a 1.2% are in dilemma whether to follow law or not!

Did you find something interesting, a 70% majority were offenders. But what makes the country still in good progress, it is that 0.2%. You 0.2% are holding the chains of India and making an Impact. Don't let your hope go, you could make an impact!

1) Indians for centuries have practiced COUNT YOUR MONEY AND PAY. So paying a THOUSAND rupees in cash is going to make them more sense than paying a TEN THOUSAND rupees using CREDIT CARDS

2) Auto debit facility is what I am going to say next. When you opt AUTO DEBIT facility for your telephone bills, etc. You automatically are not going to check your bill amount, usage, etc.

3) You will be charged some 250 rupees and above for withdrawing cash using the CREDIT CARD and the interest will be charged since the date you WITHDRAW. Actually what you withdraw is your money because you agreed to pay it. How could you be charged the WITHDRAWAL FEE. They already are charging you interest!

4) When you use your CREDIT CARD, you are not going to NEGOTIATE!

5) At most times, lack of HOT CASH is favourable since it avoids you spend your money on DOODADS. It is not so while using a CREDIT CARD.

6) In times of festival, you could have thought of purchasing dresses for some THOUSAND RUPEES. But, if your purchase amounts to some THREE THOUSAND rupees, you are not going to hesitate.

7) Every CREDIT CARD has a specific CREDIT LIMIT. Do you know why? It actually is a limit beyond which you should not purchase. What if you purchase beyond that? Nothing. He is going to charge you a OVER-CREDIT LIMIT FEE of some SIX HUNDRED rupees or likewise

8) He will usually call you and ask you to opt some OFFER or INSURANCE or PREMIUM CLUB MEMBERSHIP. You need not even have to sign any document. It is enough if you just say a YES in the telephone. It is legally valid says THE INFORMATION TECHNOLOGY ACT. They would say that you could cancel it anytime if you do not wish to opt it. But when you try to cancel it, they will tell that only a 60 % of the fees will be refunded and for that, THEY REQUIRE A SIGNATURE IN YOUR DOCUMENT. To go in is easy AND TO GET OUT IS TOUGH!

9) They will say that you have a 50 days' CREDIT PERIOD. But if you have an opening balance as on statement date, you will be blatantly charged an interest ranging from 3% to 5% on the outstanding amount. Eg. Rs.3000/- is the interest PER MONTH for a 1 LAC LIABILITY.

10) It is enough for you to pay 5% of the total outstanding. Which means, It is enough if you pay Rs.5000/- for your 1 LAC loan. He'll take Rs.3000/- towards INTEREST, a 12% education cess, and a 2% tax and the rest will go to you PRINCIPAL OUTSTANDING. So you will not be able to close the account by this way of paying a MINIMUM DUE each month.

11) If your CREDIT LIMIT is 1 LAC and you have totally used it. So you have stopped using the CARD and you are simply paying the MINIMUM DUE alone. Now the BANKER knows that you are a PROMPT payer and he wishes to get some more money from you. So he writes you this letter, DEAR MR.XXX, YOU ARE A REAL ESTEEMED CUSTOMER OF OUR BANK AND IN APPRECIATION OF YOUR CREDIT WORTHINESS, WE ARE HAPPY TO ANNOUNCE THAT YOUR CREDIT LIMIT HAS BEEN EXTENDED FROM 1LAC TO 1.5LAC. Do you know why? Because, so that you would use the CARD and he could boost up his monthly interest from Rs.3000/- to Rs.4500/-

12) Finally, when you find this some day and when you stop making the payment, he is going to sue you and get the TOTAL OUTSTANDING as on date!

13) THIS IS A REALTIME EXPERIENCE. He (CREDIT CARD EXECUTIVE) would call you and give you an offer. Accordingly, you have to pay him Rs.4000/- rupees and for that you will be given a coupon through which you could book a return flight ticket for two people anytime. You would opt it. Actually, you according to you lifestyle is accustomed only for SLEEPER CLASS train bookings. You would not even have travelled in a 3TIER AC OR FIRST CLASS. But he will make you think of FLIGHT JOURNEY which at present is not required for you. Finally you make some plans to use the flight journey with your son and when you call them, they tell you that the ticket is valid only for couples (husband and wife) and not others such as FATHER - SON. You get disappointed. So you wait for some more time and you get another opportunity to use the TICKET and you finally get one chance to use it. This time the COUPON have expired. When you enquire the CUSTOMER EXECUTIVE, he tells you the FAMOUS BANK POLICY, TERMS AND CONDITIONS APPLY, ETC. Now what happened to the 3% Interest on Rs.4000/- per month, which you had been paying for 12 months! You got nothing out of that offer and moreover, you were paying interest for it (along with service tax)!

Have you people heard of the term tortious liability? It is simple. Tort means wrong and the liability arising out of the wrong done by some other person is known as the Tortious Liability.

Let's take the following case, Mr. CHARLES slapped Mr. MICHAEL due to some argument between them.

Now, Mr. MICHAEL has two choices. He could either file a CIVIL suit or a CRIMINAL suit.

In a criminal suit, Mr. MICHAEL could book Mr. CHARLES under Section 321 of Indian Penal Code for "voluntarily to cause hurt" and would be punished with imprisonment which may extend upto one year or fine which may extend upto one thousand rupees or both under Section 323 of Indian Penal Code. But here, Mr. MICHAEL is going to get nothing but satisfaction that Mr. CHARLES have been punished.

In a civil suit, Mr. MICHAEL could sue Mr. CHARLES stating that his actions amounted to BATTERY and could ask for compensation. In this case, Mr. CHARLES could be punished as well as Mr. MICHAEL could be compensated.

Likewise, in case of defamation too, you have a choice either TO PUNISH HIM or GET COMPENSATED.

Hence, LAW OF TORT is better