Wednesday, July 18, 2012

The problem of "Mad Chase for GDP Growth" can not be addressed by Snipe Hunt.

Usually we focus on political problems afflicting the Hindus. Recently it has become a fashion to sermonize on Development. Especially terms like Inclusive Growth are increasingly used to affect pretentious cloaks of Sagacious Wisdom. Thus, for a change, we take a small detour and tread on the subject of National Growth.

While Jawaharian ideals wrecked political havoc on the Hindus, their bastard children set the cat among the pigeons in their economic affairs. There is no dearth of "wise men" who pontificate on the ills afflicting the economy while their prescriptions for solutions rely on the magic of proverbial alchemy. In a recent article, Mad chase for GDP growth has been critically questioned. However, the article fails to point out fundamental lacunae in the solution strategies. Therefore the article goes on to suggest a rehash of old medicine in terms of replacing the "Old Plan" with a "New Plan". This is, in our opinion, the proverbial Snipe Hunt.

Six decades of Jawaharian propaganda has inculcated the false mantra of "Government must do something about it" as solution for all problems. The poor as well as the rich industrialists rely on subsidies/tax cuts. India has not liberalized its economy. It has converted Socialism into Crony Capitalism. The flawed thinking, euphemistically known as "Planned Economy", must be comprehensively rejected.

Chronic problems require radical solutions. Chronic problems engendered owing to long application of wrong ideas can only be cured by sustained application of better and right ideas. Planned Growth (whether GDP or otherwise) and Egalitarian Spread of Growth are both False Goals. The correct ideas are inter alia: Freedom and Responsible Behavior, and a summary Rejection of  "protection" and "subsidies". Protection and Subsidies must be available for none; neither for the rich nor for the poor! Keynes said "In the long run we are all dead"; and his remedies inflicted even more suffering than they sought to alleviate. The effect has been:"In the long run we all (well except Government cronies) suffer".

As long as "Central Planning" is worshipped as a god to be propitiated for economic prosperity, As long as unethical practices like "wealth redistribution" from the working population to the ultra rich (Crony Capitalism) and poor (Socialism) through misguided ideologies of "Panning for Growth" and "Affirmative Action" are practiced, As long as "Equality of Result" is desired in the name of "Equality of Opportunity", As long as Egalitarianism in held as an ideal, As long as fair discrimination based on Competence is vilified, As long as belief in "Free Lunch" is perpetuated in various guises, As long as mandating of Responsible Behavior is vilified as "Bourgeoisie Exploitation", The solution to any of the problems mentioned in the said article can never even be attempted.

In terms of economics, the Government should do what it does the best, Nothing! We must wake up to the fact that the Government almost always has the anti-Midas touch; whatever the Government touches turns into turd, and you can't polish turd! People do not need to be saved by the Government, they need to be saved from the Government! Give the people Freedom and they will solve their problems. They may take a little while to wake up from delusional hopes in Jawaharian solutions, but wake up they will, as wake up they must.

1 comment:

  1. Nice short piece. Readers may find this article interesting.


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