Inflation is everywhere, an increase in the supply of money and bank credit caused by the Central bank. Money is manufactured in a complex process, in which government securities are purchased by the Reserve Bank of India (RBI), which is accompanied by the creation of new and additional checking deposits for the treasury. When the quantity of money is increased in… Continue reading

It is often argued that, in an anarcho-capitalist society greedy people would end up having a lot of power. The facts are quite the contrary. It is a free society which prevents people from acquiring political power and hence misusing it. What the proponents of this theory forget to consider is that greed could apply to politicians and bureaucrats at least as… Continue reading

Human wants are unlimited. There is no limit for the work to be done in this world. To assert otherwise would mean that we are in the Garden of Eden and have no need left to be satisfied. I don’t think that I have to state that we haven’t reached such a state and will never ever do so. It should follow from this that in a non-coercive society, there is no reason for involuntary unemployment. In a free society, free of government regulations and taxation, there would be employment for everyone who is willing to work.

Economists and other intellectuals who make a case for make work schemes pay no attention to this fact. I will let one among them to speak. “Take the case of education. Continue reading

“Coming to terms with a job loss or have a home loan you can't pay? Come to India to find peace.” Said the tourism minister Ambika Soni's to those who have burnt their fingers in the global meltdown a few days back. Peace, indeed! Death toll has reached 200 in the Mumbai terrorist attacks. The terror ordeal that struck Mumbai on Wednesday night caused a loss of nearly Rs4,000 crore to the financial capital of the country. On Thursday the Bombay Stock Exchange, National Stock Exchange and Commodity exchanges were shut and many of the corporate offices had reported skeletal staff presence as security forces tried to overcome terrorists, who struck at different parts of the city.

One of the greatest fallacies on economic depressions is that it is caused by overproduction. "Overproduction is the natural tendency of capitalism to expand the production of commodities that does not acknowledge the limits of the market (demand). Since the production and circulation of goods is not planned and firms are in constant competition for larger profits and greater market share, capitalist's booms are always followed by busts as we see in the business cycle. In short, capitalist markets are NOT self regulatory." This Marxian myth is based on the fact that in a depression there are unemployed factors of production and unsold surplus of goods.The adherents of these fallacy conclude from this that the capitalistic system produces too much in the period of boom,which is cleared away in the depression period.