On Poverty, Its Only Cure, And Chacha

In yesterday's post, I discussed the plight of street hawkers, and how, if they were allowed to keep their surpluses and accumulate Capital, they would soon own shops. I also discussed the evil and specious "vicious circle of poverty" and Peter Bauer's denunciation of it.

Today, let us take the discussion further, and talk about poverty - the raison d'etre of all expenditure by our Total Chacha State. And, once again, let me bring in the wisdom of Bauer, the "development economist" who dissented. Bauer defined poverty thus:

Poverty indicates just one thing - the absence of economic achievement.

He then went on to add:

Economic achievements are made in markets.

Peter Bauer considered himself a "classical liberal" - he was a great enemy of Amartya Sen - and he believed "economic freedom" to be most essential for the eradication of mass poverty in the Third World. This is, after all, how poor migrants to America got rich.

Liberty! Property! Markets!

I have recently pointed out how low India ranks on the World Economic Freedom Index: we are "mostly unfree." Today, let me add another point to that discussion - something I also wrote about yesterday - that the Accumulation of Capital holds the key. This, indeed, is the Principle of Civilization itself. The more Capital our people accumulate, the more will be invested, the more machines and tools will be used, the more labour will be hired, the higher will be their productivity and wages, the more will be the goods and services available for all consumers (and workers are also consumers) - and, thus, the entire ball game will roll along merrily. This may be called the Peter Bauer School of Thought as far as the economic development of the Third World is concerned. According to this school of thought, the State has no role to play in economic affairs. It must step aside to allow free play of market forces. It must only perform its negative functions - the protection of life, liberty and property.

The Total Chacha State of ours has never agreed with Peter Bauer; their guru is Amartya Sen. Thus, huge expenditures are being made since independence on "poverty alleviation" - but the poor remain poor. Now that Amartya's chela Manmohan is at the wheel, huge expenditures are being made on "education"; huge expenditures are being made on "employment guarantees"; and now, the poor even have a "right to food" - but not the Liberty and Property classical liberals insist upon.

Who really benefits from all this expenditure? Cuo boni?

To me, all this bull is just like the CONgresswealth Games - the stands are empty, and CONgressmen have walked away with the loot.

But there is something far worse going on - and that is, this is all "capital consumption." All the money The State robs from us through taxes, plus all that it borrows and fraudulently prints, all this could have become Capital if left in private hands. However, "welfare" is all about consumption, not investment. Thus, all this socialist bull will only lead to permanent poverty. Add to this all the inflation - and, as with the empty stands of the CWG, the poor will stay poor forever, the rest of us will struggle forever, while the personnel of this predatory State will laugh all the way to their banks.

The empty stands at the CWG say this: no one wants to watch all this shit.

The same goes with all this "welfare" - the poor don't want it.

They are crying out for bijli, sadak and paani - and they need Liberty and Property.

But the great "economists" of this country hear them not.

We are therefore not heading towards civilization. We are travelling the opposite way - to "de-civilization," something inevitable when "capital consumption" becomes the norm.

So I hope you get my message.

And, if you are a student of Economics, do study Peter Bauer. You can find a useful introduction to his work in my tribute to him, which can be read here.