Why do some people ask us to vote for them? Is it because they are selfless souls who yearn for the greater good? Or is there an ulterior motive at play here?
For the rest of us, the only motive that powers our behaviour is the profit motive. We seek economic gain by serving our customers better than our competitors.
Yet, the theorists of "democratic socialism" decry the profit motive and call it immoral. Jawaharlal Nehru once told JRD Tata, "Don't use that word profit in my presence, Jeh. To us, profit is a dirty word."
Quite naturally, Nehru's legacy is a nation whose political leadership is solely based on the "vote motive."
Sonia, Manmohan, Advani, Modi, Jyoti Baboo, Laloo… none of them have ever made profits.
And they all seek the vote. Their very survival depends on it.
What do these people "gain" from winning votes? What is the pot of gold that lies behind the "vote motive"?
For one, there are vast budgets. Chacha Manmohan routinely doles out astronomical sums towards various "schemes": 30,000 crores for ABC scheme, 40,000 crores for BCD scheme… and so on. Not a single Indian businessman can play around with such massive sums. Laloo as railway minister is heading a business far bigger than any Tata company. This gives him economic clout in the market. He "profits" by winning votes.
If we study the finances of our political class, if we look at their declared assets, we see that they all "profit" from the vote.
The system of democratic socialism is corrupt by design.
What is the alternative?
The only alternative is a free market economy based on the inviolability of Private Property. Every citizen in such a nation seeks survival by making Profits. Further, the political credo of such a nation holds that the profit motive is Moral: Shubh Laabh. This requires a new, moral politics, based on the Morality of Markets and Profits. Unfortunately, this is illegal in this land.
Thus, the "good guys" are easily identifiable – they make profits.
This also helps us identify the "bad guys" – those who make no profits and only seek votes. The "vote motive" is what is really immoral.
Also note that our corrupt, bloated, tyrannical and useless bureaucracy is also powered by the vote motive. Whoever wins the vote becomes the bureaucrat's master. He then gives the budget to the bureaucrat to spend. Keeping a cut, of course. The bureaucrat is not a "public servant": he is the minister's servant. Bureaucracy exists to spend money as per rules. Bureaucrats "profit" in the same manner that the politicians do – via the vote, in this land of "democratic socialism."
Recommended reading: Gordon Tullock's "Vote Motive." To download the 30th anniversary edition of this introduction to "public choice theory" click here.
What this book proves is that there is widespread "government failure" under democratic regimes. We need to keep this in mind as we think – think! – of a better India.
Enough of democratic socialism.
So true.
ReplyDeleteNowadays Advani is singing "nation first, the party second and self last". What rot!
Very True Sauvik!
ReplyDeleteQuoting Mises, "No planner is ever shrewd enough to consider the possibility that the plan which the government will put into practice could differ from his own plan."
It is impossible for even the most altruist of planner (political master/ bureaucrat) to know what is best for an individual (common man). Imagine the plight of the individual in situations where the planner is anything but altruist. The immediate need of the hour is to call for limiting the role of government in our lives, in every walk of our lives.
Leave us alone, and peace and prosperity will come about almost automatically.
Ironically, the people who are really "moral", the honest succesfull businessman who've worked hard to make something for themselves in the world is branded as an "exploiter", "blood sucker" etc where as the REAL parasites ie the politicians, claim themselves to be "saviours of the poor". People don't understand that businessmen like JRD and ambani have "helped" the poor more than all the govts of the past 60 years put together have done. But this "helping" is not altruistic intentioned but a function of the profit motive. Of course, the honest, moral profit of the businessman is trashed, whereas the illegal, immoral profit motive of the politicians is virtually deified. Such are the times.
ReplyDeleteGood post Sauvik, but i think you are mistaken when you say, none of them (our politicians) have ever made profits. Jyoti babu for one, has a son who runs one of the most profitable real estate business in calcutta.
ReplyDeleteIt's not that our politicians do not benefit from 'profit.' I am told one of the current aspirants for the PM post could be the richest business man in India.
The problem with the Indian state is that we have since beginning adopted as ostrich approach towards basic human tendencies or qualities.
When Nehru called profit a bad word and denied its legitimacy in human society, he essentially legitimised the earning of profits by illegal means. Earning profits is a basic human tendency in society and no power of the state can change that. By the state denying that it exists, it basically allows the illegal means to earn it.
The same holds true for other human needs or so called vices. We pretend that sex is no good, alchohol is bad, ganja is worse and gambling is unnatural. We adopt an ostrich approach towards these basic human tendencies. They continue to exist or even flourish in society and the law encourages or incentivises people to break the rule of law. By denying the existence of basic human traits, the Indian state or for that matter most governments, encourage its citizens to think beyond the rule of law...
Don't know whether you can call it a gandhian legacy or any of the above makes any sense, but just thought of penning down certain things in an inebriated state.
I am a layman, but regularly enjoy the comments and of course the Antidote while educating myself on liberal theory.I have changed myself to a liberal party & i will vote for you.
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