Wednesday, April 05, 2017

Fairness instead of ideology, is it possible?

People voted for Donald Trump because,"They responded to Trump's promise of jobs more than to Hillary Clinton's promise of government benefits because in addition to money, people also need dignity, a sense of self -reliance and respect within their community," wrote Prof Noah Smith. Long term unemployment makes people lose their skills and employers are suspicious of long gaps in anyone's resume. "Falling employment has been linked to declining marriage rates, reduced happiness and opiate abuse. Some economists even blame disappearing jobs for the recent rise in mortality rates afflicting white Americans." Economists recommend job creation by government spending on infrastructure and services, like old age care. Leftists say that automation will decimate jobs anyway so some form of universal basic income is essential. Prof Yanis Varoufakis has written many times on this.  Wolfgang Streeck, a German sociologist thinks that 'the capitalist wealth machine is spinning out of control'. "Streeck writes that the three main symptoms of a crisis of capitalism are slowing economic growth, rising indebtedness, and increasing inequality in the leading capitalist nations," wrote Justin Fox. To protect American jobs Trump has proposed a Border Tax on imports. This is a form of neo-protectionism, which is dangerous, wrote Prof Kaushik Basu. He recommends some form of basic income, or handouts, but this has already been rejected by the people. Ajit Ranade finds it ironic that China is now the most ardent supporter of free trade. China is ruled by a ruthless Communist Party and communism is all about state control. So what about India? India has been a socialist, almost communist, nation since independence. The 1951 movie, Awaara, became a sensation in the communist world. Socialism was at its height during the Indira Gandhi era when banks were nationalized and the top rate of income tax rose to 98.75%. Agricultural growth and credit to agriculture rose but India became poorer than other Asian nations which had become independent at around the same time. It is strange that Americans voted against increased welfare but in India where there are innumerable welfare schemes for the poor Maoist rebels killed 11 police officers in Chhattisgarh last month. It started in a village called Naxalbari in West Bengal in 1967, when a coalition government led by Communists had just been elected. Why is it still continuing when we are a $2 trillion economy, growing in excess of 7%, the fastest in the world? During a recent election campaign people ran away with the cots provided for them to sit on during lectures. That is how unequal our society is. What is the answer? Capitalism, which is fair for everybody, is required, wrote Sundeep Khanna. But, can it be forced?

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