Apr
9
Despite of the difference between basic democratic system of India and America there’s something very peculiar and common in between the politicians of the two countries.
And that peculiarity is in the politicians being politically reasonable, but economically irrational.
I am not one to suggest that most of the reasonably well-educated politicians are stupid or ignorant of fundamental economic principles. Yet I have seen that most of the politicians of India or America or anywhere else in democratic socialistic statistic system simply stresses over their political rationalities alone and forgets about economic rationalities.
Hillary Clinton and Obama both are promising great change and upbringing of millions of jobs, and removal of poverty, but none of them is ready to explain how they will do it.
It’s just as similar as the Indian congress’s election spree against Bhartiya Janata Party in the last session.
Despite the India Shining Campaign, Atal Bihari Vajpayee failed to provide the proposed development and creation of 1 million jobs and education for all every year. Congress attacked at the failure of the Shining India campaign and stressed over the general questions of inflation, poverty unemployment, illiteracy etc. and the “option less” India voted for ManMohan Singh against Atal Bihari Vajpayee. It is redundant to say about who is better leader amongst them because on economic base, both are big failure.
ManMohan Singh is a well-known and adulated economist, yet he forgot all economic fundamentals and stressed over political reasons alone and as a result got the big seat of Indian premiership too with the help of Madam Sonia, but was it genuine of ManMohan Singh to promise or even say about creating and providing 1 million jobs every year and to provide help for rural weaker farmers and creating better situations for education and controlling inflation?
Now at the failure of Congress government at creating jobs and controlling inflation, Bhartiya Janata Party has started its campaign of Mahangai TV.
As a matter of fact, ManMohan Singh must know being an economist, that
“Entrepreneurs create jobs. Business creates jobs. The Politician’s job is to get out of the way.”
A person of ManMohan Singh’s economical stature when says something about creating millions of jobs and controlling inflation should damn well be able to articulate exactly and eloquently how the government is going to create millions of new jobs in a manner that is more efficient and well-organized than the market. As a matter of fact, it is just unacceptable to expect the government creating jobs. What a socialist government can do at the most is to provide jobs by taxing its citizens and redistributing the money according to its own plans, which may or may not be beneficial or economically correct for the citizens, but yes, those plans will be politically correct and reasonable.
The best the politicians can do is to talk about “investing in infrastructure” of their politically strong and stable grounds. Yet in doing so, the political motives are always stressed over which causes a loss on overall economic progress (although public in general cannot grasp it).
This despicable habit of politicians to stress over political benefits and putting economical benefits of the citizens down causes hazardous situations. It’s a well known fact that Bihar, north-eastern states, Uttar Pradesh, Laddakh, Madhya Pradesh were never given enough importance for economical development because of which alone the naxalites and terrorists and Maoists got hold in these area of India. It was never like government was unable to control the situation and provide a homogenous development, but that is just not possible because socialism basically is a flop idea. On the name of Kashmir, Indian government kept looting whole Indian citizens via taxation, but no infrastructural development was ever stressed over in Jammu and Ladakh.. Bihar always felt lack of interest of economical developers and government never stressed over it. MP is now trying to get on the right lane yet Bastar has suffered a lot already on the hands of Maoists and Naxalites.
The reality is entrepreneurs create jobs, government regulations; restrictions and high taxes drive them away.
How can any average level mind even think that government at the central level, with all of its red tape and bureaucracy, will use all the taxes it collects more effectively than the thousands of taxpayers it will be confiscated from? The truth is that, as Thomas Sowell mentioned in his book Basic Economics: A Common Sense Guide to the Economy , there will always be people more in number who do not comprehend economics than people who do, and the kinds of empty-headed platitudes that these politicians spouts are always designed to appeal to a broad audience of economically unaware voters.
First of all, they misuses the definition of ‘job-creation’ from a free-market construct that people will freely chose to pay a mandatory tax with their free-market purchase which actually is not free as it will taxed and levied at various stages and by using that tax and the other income taxes government will provide legislated services—a necessary evil for the socialist governments.
Politicians do not create the citizen’s income, the citizens generates it. Politicians are merely forcible Robin Hoods which loots the hardworking and earning people via taxation and re-distributes money created by the citizens.
Second important thing is to be mentioned is, although by showing the dreams of investing in infrastructure, politicians can state that infrastructure development will create jobs, but will those jobs be appreciated?
Why an age-old farmer would like to work at a road or dam-construction site? The freedom to choose the job is needed and legislation cannot provide that.
The Soviet Union had a technical 0%unemployment rate but that didn’t meant they had a healthy and vibrant economy.
So even if government may provide some jobs by investing in infrastructural development, its not always sure that it would be appreciated, plus the politicians will always stress over investing at their politically strong areas. Hence, it is useless to expect politicians and governments to remove unemployment. Entrepreneurs, businessmen, innovators and the youth itself can only do it.
What government can do is to provide freedom, lack or removal taxations licensing systems and red-carpetism.
Recently, it was found that the Rs40 million provisions for help of rural unemployed areas were completely wasted in frauds and cheats of bureaucratic system. Even the various monetary help provided by world banks and UNO were being embezzled. It is just an indication that taxation and collective helping attitude can never work. Only individuals’ entrepreneurs can actually help (success of Vikram Akula in south is a proof of it).
Even the politicians cannot provide a developing education system. At the most they can stress over political benefits here again by announcing various reservations for various caste and sect based communities and hence further divide the people amongst themselves. Where poors are even not able to feed there children, how can one expect that more IIT’s IIM’s and more reservations will actually help the poor?
The only way for India is to keep economics aside of these politicians.
Economic freedom and reduction of taxes will not only help the common Indian to try to start creating job within and by themselves but also, it will decrease corruption, which is the necessary demon of the socialist taxation system.
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22 Responses to “The Similarities between Indian and American Politicians”
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Rashi V Says:
April 9th, 2008 at 7:40 pmRather than similarities between US and India, they are similarities of politicians world wide!
One tends to think that generalisations are not accurate but in the case of politicians, THEY ARE!
Comfortably Numb Says:
April 9th, 2008 at 9:29 pmYea…These politicians somehow feel that they aren’t answerable to anyone. And its a pity that in India no one cares about that. False promises..Wasting hard earned money…And provoking religion/regional based riots is all that they manage to do.
And yes there are loads of similarities b/w the politicians worldwide but I wouldn’t do bad to say that there is a huge difference in the public opinion/sense worldover! In India the publuc is so stupid that they end up choosing criminals…illiterates!
PS: I too am included in the public on INDIA! :(
Abhinav Viswambharan Says:
April 9th, 2008 at 10:51 pmA very good post.
Hope we have better leaders in the future.
unpretentious_diva Says:
April 10th, 2008 at 12:38 am@abhinav
we need better citizens too who won’t let politicians fool them.
ArUn raFi Says:
April 10th, 2008 at 2:32 amyeah..ecomomics shud be kept apart frm politics but sadly it is somethin tht can hardly happen in india unless it has a more of a presidential form f govt like in america rather than the ineffective coalitions..
pushkalAn&' pattabhiraman Says:
April 10th, 2008 at 2:34 amwell all i can say is power of being powerful is truely a self destructive weapon
unpretentious_diva Says:
April 10th, 2008 at 2:34 am@arun rafi
I guess you never read the whole post not you watched the attached video.
It clearly shows that america and india are suffering same way and the politicians in both countries are just irrational on economic grounds.
Careca Says:
April 10th, 2008 at 6:11 amI think Obama would be better than Bush. But I still think that he will not be as competent as the “rest of the world” hope so…
Kaushal Says:
April 10th, 2008 at 9:00 amI have few questions for you.
Why government is required?
Why democracy is important?
Why most of the people think to help poor is a noble act?
What are the reasons according to you that has contributed in current turmoil?
I wish sometime you will answer them.
Kaushal Says:
April 10th, 2008 at 9:03 amOne more question….
Why banks that are free to design their economy and financial system failed miserably recently?
If we think government is responsible for all wrong things in economy, why companies fail in open economy like US when there is no politician in board of directors or in management team?
unpretentious_diva Says:
April 10th, 2008 at 11:51 am@kaushal
How many banks failed? And what is the effect of that failure on public? Have you got any list to mention? Or just air talks? Punjab bank and state banks were in great turmoil including reserve bank before 1992 now banking is slowly perking up.
What it has to do with companies?
A Companies failure is not every citizen’s failure, but a government’s failure is every citizen’s failure and a debt on the every citizen irrespective of rich or poor.
Democracy is important because of the right of a citizen to either to accept the failure of a collective Endeavour for which he opted or to deny it.
Government is not required in a ideal situation, to regain that ideal situation, government is acquired voluntarily, if it is forced upon via static system and compulsory taxation and levying, then it is neither democracy nor freedom.
A free market works on survival of fittest. It is reasonable.
If people wish to help the weak, it is their personal voluntary choice to be made; it can’t be forced on everyone.
Why all likes potatoes but some don’t? should everybody be forced to eat potato?
Prashant Says:
April 10th, 2008 at 12:18 pmWhy government is required?
Govt is not required at all.
We can privatize everything.
Why democracy is important?
Its not important at all, in fact democracy is simply a dictatorship of the majority.
Why most of the people think to help poor is a noble act?
Most people don’t pay from their own pocket when they are talking about helping the poor.
Helping the poor is noble, but throwing someone in jail for not helping the poor is the biggest crime.
What are the reasons according to you that has contributed in current turmoil?
What turmoil?
Prashant Says:
April 10th, 2008 at 12:24 pm@Arun Rafi
yeah..ecomomics shud be kept apart frm politics but sadly it is somethin tht can hardly happen in india unless it has a more of a presidential form f govt like in america rather than the ineffective coalitions..
Ten bucks that you didn’t read the post.
Prashant Says:
April 10th, 2008 at 12:30 pm@Careca
I think Obama would be better than Bush. But I still think that he will not be as competent as the “rest of the world” hope so…
Trust me Obama is no good than Bush, infact he is worst.
He has an 850 billion dollar plan to eliminate the poverty from the world.
Nothing sounds more dangerous than that.
Prashant Says:
April 10th, 2008 at 12:36 pm@Kushal
Why banks that are free to design their economy and financial system failed miserably recently?
Because there shouldn’t be a monopoly in printing money.
Any entity which has a monopoly in any field will eventually screw up its job, because it doesn’t have a market to send signals to it that its doing something wrong.
If we think government is responsible for all wrong things in economy, why companies fail in open economy like US when there is no politician in board of directors or in management team?
A company can fail, in fact companies don’t always do the right thing, so companies are suppose to fail, and eventually the company which takes the full signals from the market and act accordingly will survive.
BUT, in govt departments, there is no market to send them signals when they are ******** up, so they eventually HAVE to screwup.
An example:
Lets say you are making watches, some day you decide to make a watch with a different technique, now people find that their watches become a bit slow in a month, this is a screwup, so customers will stop buying your watches and buy from a competitor, your sales will go down and you will come to know that you are ******** up.
BUT, if you are govt monopoly in making watches, anyone who needs watches will eventually has to come down to you and buy it from you, if they run late then they will have to come to complain to you(which you can chose to listen or not), but at the end of the day if you don’t wanna rectify the problem you don’t really have to, your business is not going down, no competitor is kicking you out of your job.
Kaushal Says:
April 10th, 2008 at 7:22 pmSo want facts.
Well, February 2008 wintness biggest job cut in US. 80,000 people lost their job in just one month.
Yesterday morning my own immediate client manager (My american client with whom I am working since last 2 years as an outside consultant) get the order to put down his resignation and he was not the only one in client company.
When Fed Reserve give all liberty to financial sector then bank utilized their money in whatever best profitable way they found. The result is, they are failed miserably now. Now, its not just banking sector. All the industries across the world are affected. You can see the stock markets of the whole world to get the impact.
If you read Economist, Wall Street Journal, Forbes or Fortune kind of international business magazines, you will find most of the economist are blaming Alan Greenspan, former fed chairman and a staunch follower of Ayn Rand and market economy, for this turmoil.
Regulations are required at times. Free economy is ideal when everyone play their part without any misconduct to get the leadership. However, human beings are corrupted now and everyone want to take short cuts. That is the reason why govt. or regulatory body is required.
Wanderlust Says:
April 10th, 2008 at 7:49 pmOnce again..
It appeared like a CAT RC to me..
with more of things bouncing over my head…
anyway..
well presented views..
wonder whether they’ll be implemented or not..
coz it requires intelligent and purposeful citizens too..
plus i support Obama.. ;-)
unpretentious_diva Says:
April 10th, 2008 at 7:53 pm@kaushal
in free economics, the corrupt one itself gets lost and punishment.
The government is to breed and safeguard corruption and that is wrong.
By the way, you are talking of 2008, a period when after Reagan whole openness and reasonability of democracy has been encroached upon by the conservative statism US is facing since long.
Until that corporate short of statism won’t be Removed, things will never improve.
and if you think that Obama can bring removal of poverty by $850 billions than its your irrationality, or if you think Hillary can bring 1 million jobs by implementing more taxes on Americans to collect $93 millions for that alone, than its loot.
Neither poverty can be removed by that nor unemployment.
India is current example for this fact.
US citizens should learn something by the failure of BJP and Congress lead Indian governments in India during the last 10 years.
Love life Says:
April 10th, 2008 at 9:24 pmtalking about differences i would really like to say that america has a presidential form which we don’t and we all know that they have certain more sophisticated steps in electing their head of state,the major difference comes from the fact that america is multi Two-party system where india is multi party system,the two party sysstem,there are always major idealogical as well political difference between,the two parties,but in our nation one of the major reason why regional parties are prospering is a fear that nationa parties won’t represent them in the rightful manner,doesn’t that sentiments sounds anti-natiuonalist,toiday also in america democratics and republicans have clear cut differences over the issues,but our major two political parties ,if given a deep insight would turn up as coiciding on two major issues,economic policies and external affairs,none of the elections in our country have been fought over very fundamental issues,and i think no american state is so much caste centric as bihar,talking about economic; policies whern india got independence,jawahar lal nehru choosed statism as the only way to reel these nation out of crisis,which from viewing from a certain persepectivew was correct,reason being we were under economic crisis,statistics i don’t remember right now,but dejected per capita infome,agricultarly fatigued and with wealth plundered,and those who njoid royalty were those who were accomplice of british society,also the society earlier was fragmented and first time a nation like thing came into being,but with due cxourse of time if the politicians started plundering wealth,then the fallacy was in the nation’s democratic functionary’s understanding among ppl who remained in their petty gains and the nation lost ways,again with 1990 manmohan singh’s open door policy there was econimic revamp ,big time investments and jobs came into being,but the important reason was jobs were being created due to our human resource as a service provider not due to any iunfrastructure build up,the infrastructure build up in this antionwsa rather a effect of it,so we need to understand that in ealrier phase of development most of the politicians or economist spent most of the time soaking up the benefits rather tahn being visionary for the future so that jobs are created on our own shores,so for jobs we wuld still need to be more analytical in our policies,and talking about fee will economy,i think that’s a merely creating anarchythe nation doesn’t comprises of geeks like you who can understand every a,b,c of economics,a fee will economic would make few people powerful becausse they acn understand the science and most people fools becoz they won’t,i will tell democracy and india’s constitution are two of the world’s more organized way for a nation to prosper but yet we are here discussing all those things,why every system in world,from capitalism to communism hjas been etched out for ideal persons,capitalist who at all costs rates his labours in just the most desrving way,but then he would work his way up for corrupting the system by creating a monopoly,and communism would work if people would feel that once they got according to their needs nnow let others also harness their hard work,which would be self-defiance,and so similar would be the acse for free will,the need is for a system which doesn’t expects ideal people,which is not heirarchial in its implermentation,so that most of the steps see the sun.
Love life Says:
April 11th, 2008 at 8:51 pmToday when U.S. economy has taken a beating ,all the champions of free economy are also rooting for state to play the saver and also peopel are feeling that tax collection could help market to a certain extent
Love life Says:
April 11th, 2008 at 9:25 pmFirst of all yesterday my internet connection duped me and after writing a whole summary it was lal lost,anywayz i think U.S and India forst of all has different political establishments,the presidential form and parliamentarian form,also major difference is the Two party system and multi party system,in U.S. without any doubt the two major political parties ,the republican nad democratics have very specifically etched out manifestos,but a survey into India’s major two political parties would subject out that both of the have similar stands on major issue,like financial policies ,defence strategies and external affairs,and yeah without any doubt we are a bunch of fools living in this nation who worthlessly wail out for change,now so why are there are elections in this nation,i would really feel that this nation has never voted for some national level agendas in all its independent life,in my state bihar,i never felt any other issue than caste or religion can take precedence,and i had a oppurtunity to be in gujarat and i think after godhra ,religious fundamentalism has been overlooked by people there in elections.Moving ahead to a multi party system,the reason these multi party system is flourishing in this nation is because most of the leaders of these parties are able to craete a psycholical impact in the peopel of their state that national parties won’t be able to represent their issues in the best possible way,doesn’t that sounds anti nationalist .
Talking about economic policies withouit any doubt a free will economy wa never supposed for nation like India and maybe not even for any other natuion.The important thing is at the time of independence jawaharlal nehru opted for statism ,the raeson being our plagued economic structure,poverty and agriculture backwardness,At this moment the need was fora gopvernment to come up with policies which can bind this diversifies provinces into anations,the chakbandi system,the maximum income policy,(i forgot the worth of money which was a limit,)the amount of money u can take outside because of absese of foreign reserves,clearly says that we needed a regulatory body,a vbody which helps up the poor downtrodden and illiterate of this antion as their own responsiblity,people who didn’t undestand the difference between laissez fairre economics and statism should take backseat,the govt. would look for their cause,but then system took a beating not because of fallacise in its structure but because of fallacies in the people who were integral member of that structure and mind you evry theory communism or capitalism have critics against them because each one of them expects ideal people to be a the one shouldering them,and the result was duh,there is nothing like perfect communism or capitalism anywhere,The thing is we have persisted with that statism and yeah with the economic destability in U.S.,a effecr of free will economy ,people feel persisting with statism is the answer,And talking about job oppurtunities that’s also an effect of myopic characteritic of our polity as well as masses,when india came up with this open door policy there was a revamp in economic structure foreign investment ringed in but the major reason was not in infrastructure or investment but in our service sector,we came into prominence due to our human resource and our ability of providing cheaper labour in comparison to developed nation of this world,now the mistake was we went on expecting more oppurtunities whereas at the same time we would have concentrated more on infrastructure development at our end,which would have ultimately led to job oppurtunities,so we would have to wait for some one other to take up the issue more effectively.
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