As I understand more and more economics(by Economics I mean Austrian Economics, the real kind, not mathematical model of calculating how much you prefer your kids studying theory of evolution vs intelligent design and calculating National Patriotic Index), I realize more and more how easy is it to show the problems with theory of Socialism.
One of the things I realized early on was that a purely voluntary socialist worker’s union would be completely feasible in a capitalist society. If a bunch of men want to create a worker’s co-operative where profits are distributed equally among everybody, essentially it is the same thing as a company fully and equally owned by its workers. Just do not allow any individual who does not work in the company to own the capital goods(means of production). Continue reading

Defining recession is not an easy issue specially when there is no widely approved definition for recession. Newspapers and popular business tabloids suggest that recession is a period of general economic decline that causes and results in decline in the Gross Domestic Product of a country for two or more consecutive economic quarters of a financial year. The conventional associated indicators, causes or results of recession are considered to be a decline in stock market figues, dropping realty sector prices, and a steep rise in unemployment rate. Yet, the definition does not emphasize on any such consequences and hence it cannot be termed as a universal definition of recession. Furthermore, with this definition of recession that depends on two quarters of financial year, it is very difficult to mention the exact point of time of the beginning of recession and it is impossible to suggest what was the actual cause of recession. That is, recession remains a mystery. Continue reading

It is probably an often thought question, but rarely answered correctly by most of the people. What makes a country like India poorer than a country like say America? I have tried to answer this question since I was a kid, then as an adult.
Lets see, most people might answer to that question as “India is poor because it lacks so and so “, the effect being something India does not have because its poor, and US has because its richer, and not a cause of Indian poverty. For example, some people might answer
“India is poor because it lacks infrastructure western countries have”, or
“India is poor because of lack of education among people”, or
“India is poor because its very corrupt, and it has politicians who manipulate people etc etc”.

Elliot once said that “Books are the quietest and most constant of friends; they are the most accessible and wisest of counsellors, and the most patient of teachers.”
It is hard to argue against that, books are the most patient and wisest teachers. We learn a lot deal of things through books, books are the building blocks of our ideas and though process. Books actually are the raw material provided to us by the precedent generations to use their experiences, knowledge and desire to explore better terrains of life. Books are not only the best friends; they are a challenge for us, a challenge to develop more, to beautify the ideas further, or to at least learn that, which already has been mentioned, searched, thought and quoted in the book.
Books give us a chance to look further, think forward, and create better and revolute the life to achieve new heights.
A book can change your life, giving you new dimensions to think forward and create your own ventures to relish and enjoy. A book let you live more than one life, it let you explore the territories of ideas you never had thought of. Continue reading

With the fall of silver in 1873, Indian Currency Committee suggested British India government to adopt for gold standard and in 1898 British government instead of adopting a Gold Exchange Standard, pegged Indian rupee with British sterling.
After Independence, Indian government started minting Indian coins (rupees); Indians thus never got a gold standard for representing their money
Now since last 63 years, Indians have so much used to the government issued currency, cycles of inflation and depression and always increasing price rise, that even talking about gold standard and private coinage seems to be impossible. Yet, since Indians were in habit of using private monometallic coins in past, it is imperative to discuss the issue of private coinage. Taking the premises of Freedom for everybody and the Self-Governance (Swaraj), which has been extolled by the Indians as a basic Mantra of life, let us examine the case of private currency carefully. Continue reading

Consumerism is the principle of Free Market, which states, “free choice of consumer should rule the market, or, the consumer decides the economic structure of the society“. Producers and providers bring their products to the market and make it certain that consumers, the public, may gain enough knowledge about their product so that, if the consumer decides that the particular product is good, they may buy it.
To spread the knowledge of their product, producers advertise and apply proper marketing strategies. The consumer remains free either to accept the product and buy it, or to reject it at certain price.
Now days, producers are delivering good attractive services, better comfortable products and advanced technologies in the market. Some people claim that all this advancement is redundant and nobody needs it. Continue reading

Reserve Bank of India does not produce wealth, but yes, it does produce currency by printing out notes out of thin air to meet the fiscal deficit requirements. When the RBI print out currency to fulfil the requirements of government, the currency reaches the market and that causes inflation and acute price rise.
The current acute price rise in India (especially in food sector) is evidently the result of the government stimulus it provided on behalf of borrowing from RBI that in turn simply print and dolled out currency in the market to increase the liquidity. Now those “stimulus” for the market is causing problems for the common man. That is, although government borrows money from RBI, which in turn, prints out money at the demand of politicians and government, the actual borrower who suffers the burden of debt is only the common man of India who has to face the yawning mouth of inflation every second day. Continue reading

A free society by definition is the society in which, each individual, i.e. the basic unit of the structure of society remains to pursue his personal pursuit of happiness, where he is free to achieve his most using his talent and hard-work and saved resources. Obviously, such a society depends on rational pursuit of self-interest and provides full freedom for the individuals from the shackles of social responsibility or altruistic motives.
Often socialists claim that such a free laissez-faire capitalist society will turn out to be a system of dog race where no one will look for the poor, the impoverished an the depraved. Furthermore, socialists claim that for a poverty-free society, compulsory altruism is most necessary, where the producers and creators who can produce wealth, must be forced to pay for the living of the poor and depraved. Continue reading

A panel of “experts” appointed by the Government has recommended raising fuel prices.  The panel, headed by Kirit Parikh,  recommended a hike in domestic LPG by Rs 100 a cylinder and PDS Kerosene by Rs 6 a litre. It is not certain that what the panel called for will be implemented. Rangarajan Committee and the Chaturvedi Committee reports… Continue reading

The basic premise of various economic theories is derived as ‘scarcity’. In fact the study of economics is limited towards ‘economic goods’, that is, goods that carry use value to people but are scarce compared to peoples’ infinite desires. Prices for these scarce ‘economic goods’ arise out of an implicit process of bidding.
In short, the market allocates resources among the several bidders who can outbid their counterparts.
In short, the market allocates resources among the several bidders who can outbid their counterparts. Continue reading