An argument for Socialism
Such a beautiful concept, such a wasted concept....
Let's look around and see the world we live in. Capitalism is all pervasive. Growth and expansion are the modern day mantras. Open markets and free economies are stressed. We all love the idea but we fail to see the truth through the glossy brochures advocating capitalism.
Open market is a myth. Markets are governed by what Uncle Sam and the European Union and China determines. African nations are told that they need to open their markets so that it can be flooded with goods made by heavily state-subsidised producers in the 'West'. And then they are told that their products cannot be imported by the 'West' because of domestic pressures.
Free economy and the dollar trade is another funny thing. Economies are free as long as they listen to the World Bank and fall in line with what the US wants. If certain countries fall out of line, then sanctions are imposed. Sometimes, sanctions so heavy that the countries are forced to rethink. Most of the third world countries also borrow money from the World Bank and the Paris Club and then fall prey to their diktats.
America prefers the world to trade in dollars. Every dollar traded improves the American economy. Take this for example. When India buys oil from the Saudis, we have to pay them in dollars. Now, how do we get dollars. We get dollars either by borrowing them from the USA or by selling goods to them in return for dollars. Saudis cannot do much with the dollar either, so they use their oil dollars to buy goods from the USA or to trade with other countries using the dollar. So it all comes down to the same point - if you want to trade globally, you have to include America in the picture somehow.
The inherent danger of this is that when the American economy slows, and the dollar price falls, all the countries who have a hoard of dollars face a crisis. Their dollar worth reduces and we see things like the East Asia economic crisis of the late 1990s. However, developing countries are forced to trade in dollars to promote the growth of the richer countries.
Capitalism promotes boundless growth. Material weath and possessions are touted as the sign of a person's success. All these material possessions are, in turn, products of a capitalist society that need to be purchased and here's the con. Possession of these items is what defines success. e.g. A person must have the latest mobile phone and a BMW to prove that he or she has attained success. However, 'latest' changes every 6 months, therefore the person is forced in a continuous cycle of buying, thereby propagating the vicious cycle of a never ending spending habit.
The rich get richer and the poor get poorer. Years ago, Karl Marx came out with a wonderful theory for a utopian society based on equality, but no, communism is not the answer. Humans are not equal, either socially or intellectually - and communism has no place in human society - atleast if the society has to progress.
However, the rich have a responsibility to take care of the poor. That is the only thing that distinguishes us from animals. In the animal kingdom, the weaker is eaten by the predator, whereas in our society, we have the capability and the intellect to understand that the weaker need to be taken care of, and not left to the proverbial dogs. The fact that we don't really do much does not help
Socialism and moderated capitalism are the answer for the future. In a communist society, with everyone getting the same amount of money, innovations and advancement are lost because there is no incentive for people to come out with new ideas. That is a flawed model which works on an assumption that people want to progress and do not care about material wealth. Socialism, however, coupled with a few capitalist policies seems to answer most of the issues plaguing nations today.
In a proper society, people get paid based on what they work. A doctor or an engineer will get paid more than a person sweeping the roads, however, a free healthcare service will ensure that the doctor and the sweeper gets the same medical treatment irrespective of their social or economic standing. Britain is a good example. The NHS, despite it many flaws still manages to treat a lot of people in dire need of medical attention.
The state also needs to provide free or subsidised education upto the secondary level for everyone, especially for the economically deprived. People from an economically backward strata require subsidised and/or free education to whatever level they are able to reach. However, in the interest of the growth of the economy, reservations for any white collar job should not be permitted. Non intellectual or blue collar jobs need to be reserved to ensure that the economically backward strata are assured of certain jobs, but those jobs do not prevent advancement of the nation.
Infrastructure improvement requires labour. In a country like India, a lot of labour is available. Utilising unemployed youth and people from deprived backgrounds and to provide them with money, food and medical insurance will assure the state of a limitless supply of labour to fuel the infrastructure growth machinery. Newer techonologies like automated banking and facial recognition need to be utilised to ensure that no cash payments are made, but only electronic funds transfers are made to the bank accounts of these labourers. Paid through state run banks, this will also ensure this money will flow through government run banks thereby improving the reach of the banks and loan facilities to a wider populace.
Free trade is a joke. For a country to progress, it needs to manage it's own destiny, rather than be ruled by the whims of the powerful nations. India has suffered enough, first at hands of the Colonial powers, then at the hands of the lenders and then at the hands of the inept politicians who tend to gloss over millions of evils to retain power.
Unless we start asking questions, nothing is going to happen.....
Such a beautiful concept, such a wasted concept....
Let's look around and see the world we live in. Capitalism is all pervasive. Growth and expansion are the modern day mantras. Open markets and free economies are stressed. We all love the idea but we fail to see the truth through the glossy brochures advocating capitalism.
Open market is a myth. Markets are governed by what Uncle Sam and the European Union and China determines. African nations are told that they need to open their markets so that it can be flooded with goods made by heavily state-subsidised producers in the 'West'. And then they are told that their products cannot be imported by the 'West' because of domestic pressures.
Free economy and the dollar trade is another funny thing. Economies are free as long as they listen to the World Bank and fall in line with what the US wants. If certain countries fall out of line, then sanctions are imposed. Sometimes, sanctions so heavy that the countries are forced to rethink. Most of the third world countries also borrow money from the World Bank and the Paris Club and then fall prey to their diktats.
America prefers the world to trade in dollars. Every dollar traded improves the American economy. Take this for example. When India buys oil from the Saudis, we have to pay them in dollars. Now, how do we get dollars. We get dollars either by borrowing them from the USA or by selling goods to them in return for dollars. Saudis cannot do much with the dollar either, so they use their oil dollars to buy goods from the USA or to trade with other countries using the dollar. So it all comes down to the same point - if you want to trade globally, you have to include America in the picture somehow.
The inherent danger of this is that when the American economy slows, and the dollar price falls, all the countries who have a hoard of dollars face a crisis. Their dollar worth reduces and we see things like the East Asia economic crisis of the late 1990s. However, developing countries are forced to trade in dollars to promote the growth of the richer countries.
Capitalism promotes boundless growth. Material weath and possessions are touted as the sign of a person's success. All these material possessions are, in turn, products of a capitalist society that need to be purchased and here's the con. Possession of these items is what defines success. e.g. A person must have the latest mobile phone and a BMW to prove that he or she has attained success. However, 'latest' changes every 6 months, therefore the person is forced in a continuous cycle of buying, thereby propagating the vicious cycle of a never ending spending habit.
The rich get richer and the poor get poorer. Years ago, Karl Marx came out with a wonderful theory for a utopian society based on equality, but no, communism is not the answer. Humans are not equal, either socially or intellectually - and communism has no place in human society - atleast if the society has to progress.
However, the rich have a responsibility to take care of the poor. That is the only thing that distinguishes us from animals. In the animal kingdom, the weaker is eaten by the predator, whereas in our society, we have the capability and the intellect to understand that the weaker need to be taken care of, and not left to the proverbial dogs. The fact that we don't really do much does not help
Socialism and moderated capitalism are the answer for the future. In a communist society, with everyone getting the same amount of money, innovations and advancement are lost because there is no incentive for people to come out with new ideas. That is a flawed model which works on an assumption that people want to progress and do not care about material wealth. Socialism, however, coupled with a few capitalist policies seems to answer most of the issues plaguing nations today.
In a proper society, people get paid based on what they work. A doctor or an engineer will get paid more than a person sweeping the roads, however, a free healthcare service will ensure that the doctor and the sweeper gets the same medical treatment irrespective of their social or economic standing. Britain is a good example. The NHS, despite it many flaws still manages to treat a lot of people in dire need of medical attention.
The state also needs to provide free or subsidised education upto the secondary level for everyone, especially for the economically deprived. People from an economically backward strata require subsidised and/or free education to whatever level they are able to reach. However, in the interest of the growth of the economy, reservations for any white collar job should not be permitted. Non intellectual or blue collar jobs need to be reserved to ensure that the economically backward strata are assured of certain jobs, but those jobs do not prevent advancement of the nation.
Infrastructure improvement requires labour. In a country like India, a lot of labour is available. Utilising unemployed youth and people from deprived backgrounds and to provide them with money, food and medical insurance will assure the state of a limitless supply of labour to fuel the infrastructure growth machinery. Newer techonologies like automated banking and facial recognition need to be utilised to ensure that no cash payments are made, but only electronic funds transfers are made to the bank accounts of these labourers. Paid through state run banks, this will also ensure this money will flow through government run banks thereby improving the reach of the banks and loan facilities to a wider populace.
Free trade is a joke. For a country to progress, it needs to manage it's own destiny, rather than be ruled by the whims of the powerful nations. India has suffered enough, first at hands of the Colonial powers, then at the hands of the lenders and then at the hands of the inept politicians who tend to gloss over millions of evils to retain power.
Unless we start asking questions, nothing is going to happen.....
1 comment:
HI Dalvi,
You have wonderful ideas/thoughts. Why not come back to India and try impementing few.
Regards
Nikhil
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