Friday, October 23, 2015

Why should the strong surrender to the weak?

Physicians have known about geographical differences in disease prevalence for a very long time. For example Chagas Disease is found in South America, Yellow Fever in Africa and Pernicious Anemia almost exclusively in blond, white skinned people. Economists, on the other hand, apply the same theories, developed mostly in western universities, to every country in the world, regardless of climate, culture, eating habits and communicable diseases, which reduce the strength and efficiency of the people. India has the highest number of child mortality in the world. Partly because of our huge population and very high fertility rates but in large part because of poor sanitation. The Prime Minister has started a project to provide toilets in every house but there is cultural resistance to having a dirty room within a home. Why is all this relevant? Because ever since Thomas Piketty wrote his bestseller about rising inequality there has been a deluge of articles about it by economists. Figures look almost similar. The richest 1% own 50% of the total wealth of the world while in India the top 1% own 53% of the total wealth. There can be no comparison between India, which is about $2 trillion economy with the US, which at $16 trillion is 8 times the size, with one-third the population, and yet the rate of inequality is the same. Clearly the causes cannot be the same so the remedies have to be completely different. The US is an unabashedly capitalist country which prides itself as the 'Land of Opportunity', where you can follow the 'American Dream', which is for anyone prepared to work hard and take the risk of failure. Nowhere is this more evident than in Silicon Valley, where failure of one idea does not prevent a person from starting again with a new idea. Socialism is written into our constitution which has meant absolute power for politicians, which includes the power to distribute resources to family and friends, to use taxpayer money without any accountability, to levy very high taxes which rewards those with black money, and to pour trillions into social schemes which reward the poor to produce more children, thus keeping us mired in poverty. So, what should we do to get out of the pit? Some recommend high taxes, a minimum wage, guaranteed employment and social support for the poor. Others say that redistribution does not work but inclusive growth, in which the government invests in training the workforce to improve productivity, is the answer. Professors recommend 'quality education, skill development, health services, transparency, a level playing field, restraint on expenditure' and so on. But we need politicians to make all that possible and they have no intention of doing so. The Congress passed the 42nd Amendment to the Constitution which replaced Fundamental Rights with Fundamental Duties and is resisting the GST bill tooth and nail. We are weak, they are strong. Why should they give it up?

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