Wednesday, August 27, 2008

Of the Economics language by Chandra

How people learn a particular idea or language without difficulty. A slight similar question was also asked by Swami Vivekananda more than hundred years ago! But let’s focus what F A Hayek wrote in one of his book.

“spontaneously grown institutions such as language, law, morals, and conventions that anticipated modern scientific approaches and from which the liberals might have profited. But the admiration of the conservatives for free growth generally applies only to the past. They typically lack the courage to welcome the same undesigned change from which new tools of human endeavors will emerge”.

Of course Hayek was arguing about the inability of conservative understanding on natural institutions and its viability to every one when it has been promoted.

When it comes the learning of “Economics is generally considered as a “dry” subject by students. Its teachers face a challenge in generating interest among their students for economics”. There is a valid reason’s for this situation. Apart from all other reasons “One of the most striking things was the frequent assertion by the economists I met was that they didn’t read the business papers. This strange approach doesn’t seem to have changed much. Just two days ago, I met a university professor who said the same thing. I wondered about the point of the research they did. If, like their counterparts in the US and the rest of the west, they didn’t address live problems, what did they do then? And why?”

It is true the teachers who are in the field of economics don’t have nobility of teaching themselves that is one of the major reasons for their inability to train students.

They don’t even understand what liberal economist Adam Smith said more than two hundred years ago! “The teachers had no jurisdiction over their pupils, nor any other authority besides that natural authority, which superior virtue and abilities never fail to procure from young people towards those who are entrusted with any part of their education”.

Wednesday, August 20, 2008

Who can write poem by the expenses of Public money? By Chandra

Many politicians do many things except in the interest of people who were elected these so called representatives who actually represent themselves for their interest not.

An Indian politician does some what different, let’s see.

"Dear Atalji I must confess It is time to clear up all this mess. Let us (something) deal with unfinished tasks and see the man behind the mask December 6th this nation saw gross violation of the law In retrospect you said this meant an expression of national sentiment

Don’t send me an sms to tell me that you love me I do not want to be that quickly erased from your memory.

I miss the smell of burning waste. The wake up call of temple bells And vendors who I chatter with Bargaining as they sell.

I haven’t spared the media. I have spared anybody. I haven’t spared the bureaucracy.There is a poem called ‘Smooth Sailing’ as to how a file moves in the bureaucratic system. When the minister wants it to move it quickly, how the Newton’s law of gravity slows it down. And it says:

The bureaucrats have finally tuned Newton’s law of motion Every action must be opposed with an equally robust reaction.

Our bureaucrats have finally tweaked Newton’s famous law of motion Positive actions must be opposed with a robust negative reaction Policy prescriptions when in place the Minister states with clarity This slow down movement of the files taking recourse to law of gravity Those requiring urgent action kept at the bottom of the pile Prepare a detailed list of objections which actions cannot reconcile Convoluted archaic rules not understanding simple facts Persuade the minister to invoke omnibus powers to relax Then opine,that such authority if he dares to ever use
Has the potential of making him a suspect if not an accused Most of our national projects will acquire enough maturity with time Moving forward at snail’s pace given the bureaucratic mind At the time of implementation all essential parameters change Bureaucrats then advise the Minister to start all over again.

The Left has suffered for a lifetime now, of an ailment they can’t diagnose The symptom however that troubles them most is that they can’t see beyond their nose. Doc Basu warned them of the precipice ahead, gave them medicine to prevent them fall The healer Surjeet, with practical tips, weaned them away from the Das Kapital They were then advised to see an optician for a possible vision transplant For an alternative way to prosperity for the poor who suffer from wants Manmohan, the doc, had a solution in mind, promised to do whatever he can They had to listen to him beyond the regime called the common minimum programme To see beyond the nose we must energise the mind, clogged, confused and unfreeDoc Manmohan believed, after studies revealed,that the way out was the 1...2...3.

Convincing those with their vision impaired, earning their ire and opprobrium Was no mean task, for what we needed most was in a short supply, of uranium This fissile material with our reactors in place would aid in clearing the mind But fossilized thoughts, ranted and raved, saw Opposition completely blind Frustrated he thought that in changing tack he had an outside chance to succeed Without energy supply his patience would die Though the afflicted needed time to concede With objectives achieved their mind will mutate They will begin to relearn as they see our actions will display Clearing the way for our energy autonomy.

The Indo-US nuclear deal now a bone of contention With the BJP’s turn about and the Left’s apprehension Imperialist designs cited as reason for suspicion One hoped left the ideology had evolved through transition Dismantling of the Berlin wall, the fall of the Iron Curtain No Gorbachev of Indian mould, after Basu the future uncertain.

Free press challenge today by corporate world Making news like other products commercially sold Advertising revenue drives content for gratification Commercial interest shamelessly receive undue articulation Electronic media through images that sensationalise In the process their credibility seriously jeopardize Bollywood geeks, cricket icons make headline news What stars foretell, conman tricks meant to infuse TRPs of channels, soap operas get hits for you News that matter, serious content, of limited value Online information, instant coffee, no time to brew.

That might not have suited for all those who wanted to embarrass the government that they Politics lost its veneer, as it would appear wads of notes on vulgar display We were all in a stupor, felt cheated and let down by those we hold in esteem Can’t compromise the nation by belittling its systems not upholding its glory pristine The government had won, democracy the loser and politics in utter disarray This temple of justice invaded by avarice Yet the nation will still have its way.

Every time you met me, your arrival woefully late I stood somewhat embarrassed outside your college gate Those who saw me waiting smiled knowingly at me A site that they had witnessed ever so frequently You noticed not my protests and with an open smile Expressed regrets that yet again I had waited for a while We waited for the sun to set to hold each other tight Nocturnal prowl the chowkidaar sentinel of the night Spotted with his flashy torch both in disheveled state Ensuring that potential sinners must never fall from grace.

Meeting in London. I dread to meet at Oxford street The same old faces exchanging usual graces Backslapping each other How are you brother Enjoying the weather. All family together. Away from the heat, Holiday complete And wife is busy on a shopping tizzy Makes her happy Buying for child They all going wild Picking up clothing Almost for nothing Best part is, sir This is like ghar".

See the full interview

Thursday, August 14, 2008

Adam Smith- A Primer or Frontier by Chandra

It is the nation and its men who do things better by trying every alternatives, no harm in that. Than where is the question of need of Government yes they do need but stupidly for only to protect men from external conflicts.
Here is a simple idea of what the man is all about in an economy written plain language by EAMONN BUTLER, Director of Adam Smith Institute.

"The wealth of a nation is not, as the mercantilists believed, the quantity of gold and silver in its vaults, but the total of its production and commerce – what today we would call gross domestic product.

In a free exchange both sides become better off. Nobody would enter an exchange if they expected to lose from it. Imports are therefore just as valuable to us as exports are
to others. We do not need to impoverish others to enrich ourselves. Indeed, we have more to gain if our customers are wealthy.

Regulations on commerce are ill founded and counterproductive. Prosperity is threatened by taxes, import tariffs, export subsidies and preferences for domestic industries.

A nation’s productive capacity rests on the division of labour and the accumulation of capital it makes possible. Huge increases in output can be gained by breaking down
production into many small tasks, each undertaken by specialist hands. This leaves producers with a surplus for investment.

A country’s future income depends on the rate of capital accumulation. The more that is invested in better productive processes, the more wealth will be created in the future.

When there is free trade and competition the market system automatically remains focused on the most urgent needs. Where things are scarce, people are prepared to pay more for them. There is more pro. t in supplying them, so producers invest capital in order to produce more.

Prosperity grows most rapidly when there is an open, competitive marketplace, with free exchange and without coercion. Defence, justice and the rule of law are needed to maintain this openness. Freedom and self-interest do not lead to chaos, but – as if guided by an ‘invisible hand’ – produce order and concord.

Vested interests use government power to distort the market system for their own benefit. Employers and professionals may promote regulations that stifle competition, such as
entry barriers that prevent people from practicing particular trades.

Taxes should be proportionate to income and ought to be certain and convenient to pay. They should be cheap to collect, should not hamper business, should not be so onerous as to encourage evasion and should not require frequent visits from tax gatherers.

Human beings have a natural ‘sympathy’ (or empathy) for others. This enables them to moderate their behaviour and preserve harmony. It is also the basis of moral judgements about behaviour and the source of human virtue. Human nature is a better guide to the creation of a harmonious society than the overweening reason of zealots and visionaries".

The Full paper!

Wednesday, August 13, 2008

Statism, Socialism and Monopoly Government is not Free by Chandra

Mr Rahul Bajaj, Chairman, Bajaj Auto, said that “for long, the developing world had been conceding ground to the developed world and this had to change now.” He said “I prefer a no deal rather than a bad deal.”

It is the same story about the failed Indian State which is by no means for poor to prefer a no deal rather than a bad deal……..but by every means it works for bureaucratic welfare and is not for below poverty welfare.

Barry Loberfeld has article which not only ask several crucial questions but make reader to muse!

It very important to note the below lines to think through!

We know Madison and his politics of limited government, we know Jefferson and his morality of individual rights, but we often forget Paine and his philosophy of the primacy of society over the State:

A great part of that order which reigns among mankind is not the effect of government. It had its origin in the principles of society and the natural constitution of man. It existed prior to government, and would exist if the formality of government was abolished. The mutual dependence and reciprocal interest which man has upon man, and all parts of a civilized community upon each other, create that great chain of connection which holds it together. The landholder, the farmer, the manufacturer, the merchant, the tradesman, and every occupation, prospers by the aid which each receives from the other, and from the whole. Common interest regulates their concerns, and forms their laws; and the laws which common usage ordains, have a greater influence than the laws of government. In fine, society performs for itself almost every thing which is ascribed to government.

Thursday, August 7, 2008

Who won the Annual Bastiat Prize for Journalism in India? by Chandra

It was the year 2002 the radical free market economist Mr Sauvik Chakraverti (India), columnist, Economic Times won the prize along with Amity Shlaes (USA), columnist, Financial Times and once again put the free society ideas on triumph!

The following are the articles which were nominated for this prize! It is an extremely readable one for all.

On Scarcity...and Abundance, The Economic Times, 28 January 2002
Teacher, Don't Teach Nonsense! The Economic Times , 26 March 2002
Liberals Must Dump Gandhi, The Economics Times, 24 February 2002

More here

In 2005 Mr Dinakar Sethuraman (India), Contributing Editor, Forbes Global and Ila Patnaik (India), Economics Editor, Indian Express were in the finalist for the prize.

And not finally……….Mr Amit Varma (India), Mint won the prize in 2007. His articles are equally readable! The nominated articles are here:

It is quite amazing to see how too late to g..e..t..the Bastiat Price for Journalism from India Mr Swaminathan S Anklesaria Aiyar, the man who is afraid of nothing in the economics journalism! He is one of the finalists for 2008 annual Bastiat Price!

Congratulations Mr Swamination!
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