Government equity infusions into PSU banks

Harsh Vardhan’s excellent blog post on this subject made me think further about the questions.

Finance policy makers in India are often proud of the fact that India has avoided a large systemic crisis in which substantial fiscal resources have been put into rescuing financial firms. I think this optimism is overstated. If we . . . → Read More: Government equity infusions into PSU banks

Automation and Guaranteed Minimum Income

Here’s a comment Glowing Face Man left on a blog post titled “It’s No Coincidence”:

You (and the supermajority of pundits) labor under the false assumption that everybody needs jobs, that a healthy economy involves 90%+ employment. This simply is not consistent with the reality of automation, it will become less and less consistent . . . → Read More: Automation and Guaranteed Minimum Income

The disaster at Maruti

The news from Maruti is disgusting. I have been curiously watching how the stock market takes it in:

That Maruti has serious labour problems has been known for a long time. But the brutality that unfolded in recent days was out of the world. It was news. When I read about it on Thursday, it seemed to . . . → Read More: The disaster at Maruti

The Autism of Economics

In a prior post, I offered an alternative explanation for socialism’s failure. In doing so, I critiqued economists that defend the free market on the grounds of monetary incentive structure of being too narrow in their thinking. While monetary incentives play a role in human behavior, they are not the only motivator, and are . . . → Read More: The Autism of Economics

Redistributing Wealth

In an axiomatic sense, wealth is always distributed in some way. Likewise, any transfer or exchange of wealth is a redistribution of wealth.

Redistribution of wealth comes in two forms: coercive and voluntary. The former method of redistribution is associated with socialism and, more generally, any statist attempt at transferring the goods or wealth . . . → Read More: Redistributing Wealth

Is Socialism an Ex Ante Rationalization?

A while back, I asked if libertarian political theory was an ex post rationalization used simply to justify the cause of freedom without actually explaining why it worked. It seems reasonable to ask a similar question of socialism: is socialist political theory* simply a rationalization for pursuing a certain course of action?

At first . . . → Read More: Is Socialism an Ex Ante Rationalization?

Business cycle conditions in India: It's mostly cycle, not trend

There is a lot of gloom in India today about the broad-based failure of the UPA strategy of combining left-of-centre populism, fiscal profligacy, theft, and a lack of interest in the foundations of India’s growth. We learn from history that we learn nothing from history; India has clearly learned very little from its escape . . . → Read More: Business cycle conditions in India: It’s mostly cycle, not trend

Interesting readings

Sanjaya Baru in the Business Standard on India’s relationship with Taiwan.

I added Monsoon: The Indian Ocean and the Future of American Power by Robert D. Kaplan to my suggested India bookshelf. It is a truly fabulous book.

Sanjay Banerji in Business World on how socialism went wrong in Bengal.

Minxin Pei has . . . → Read More: Interesting Readings for June 14, 2011

Capitalism, Socialism, and Scalability

Jason Brennan considers an analogy:

Cohen’s book proceeds as follows. First, he has us imagine a camping trip among friends. Food and goods are shared freely. Everyone abides by (purportedly) socialist principles of community and equality. Everyone does his part. No one takes advantage of anyone else. No one free rides. Everyone contributes. Everyone . . . → Read More: Capitalism, Socialism, and Scalability

Did the Labor Party Own ‘The Light on the Hill’?

Over the last few years quite a few political commentators have been saying that no-one really knows any more what the Australian Labor Party stands for. Some of them contrast modern Labor’s apparent absence of philosophical underpinnings with ‘the light on the hill’ that former prime minister, Ben Chifley, spoke of in 1949.

I . . . → Read More: Did the Labor Party Own ‘The Light on the Hill’?