Yesterday, I asked my reader to choose between shopkeepers and planners - and proffered the reasoned advise that it would be prudent to opt for The Market.
It follows that Unilateral Free Trade is an essential part of this civilised means of survival - "I shop therefore I am" - for only then you will find all the shops stocked with all the goodies possible from all over the world. As a Consumer, you will truly be King.
Quite obviously, the Producer will not like it - and will argue for Protectionism.
Protectionist producers are "schizophrenic": they are "divided selves." They do not see themselves living both roles in their daily lives - of being both Producer as well as Consumer.
Thus, 20 years ago, if Rahul Bajaj wanted cheese, he'd get only Amul: The Taste of India; and if Kurien wanted a scooter he'd get only Hamara Bajaj.
Society can follow only one policy - either for Producers or for Consumers.
A Producers' Policy is anti-social; it creates scarcity and monopoly.
A Consumers' Policy is in the best interests of the "commonwealth"; no particular interests are served. There is abundance. There is economic growth and development - because everyone's consumption improves.
This is very good for daily wage earners - for they get to spend their daily wages on the best possible goods the world has to offer. In socialist India, there are many who profess to champion "workers' rights" - but always in their capacity as Producer of labour; never in their capacity as Consumer of wage goods.
Cheese is one such "wage good." And we live in Amul Land, one billion of us. Here is today's news of some heavy-duty "diplomatic" fuck-ups between the USSA and our Central State minister Sharad Pawar over the entry of American cheese into Indian markets. The report says the respective representatives of their central states will soon issue a "joint statement."
If Liberty prevailed we'd smoke the joint and buy whatever cheese we liked - and, did you know that De Gaulle once said, about France, that "you cannot rule a nation with 249 kinds of cheese." I have never heard of any great American cheese. What about Italian cheese, Swiss cheese full of holes, Dutch edam, English cheddar? And think of all the "joint statements" that will have to ensue. Then think of the WTO - a club of politicians and diplomats.
Unilateral free trade snaps all relations between Politics and international trade.
It is noteworthy that the politician Sharad Pawar, who in his capacity as Central State minister is denying Indian consumers cheese, is claiming to be doing so in order to "protect the consumer." He says there might be some "non-veg stuff" in the American cheese so he must stop its entry in order not to "hurt religious sentiments."
Yet, why can't we leave that to The Consumer. You get locally tinned corned beef and a wide variety of fresh as well as processed pork products in Goa and no Hindu or Muslim "religious sentiments are hurt." Further, shopkeepers will step in to stock goods - and it is they who should really decide which goods not to stock in case they do offend customer sentiments. This is "local knowledge." And we can have compulsory labelling for non-veg contents. And by "compulsory" I don't mean statute - it could be a market dictate, like MacDonald's in north India not selling beef burgers. But India is a huge place. Lots of local cultures. There are many cities in India where I am sure MacDonald's can happily sell beef burgers. So why can't we leave it all to consumers and shopkeepers? Why drag the Politician into cheese? This one's already got his hands full with cricket and sugar.
You are a Consumer. It is only in a Free Market that You are truly Sovereign. Do you gain materially when politicians intercede? Do you like "joint statements"?
If not, raise a shout for Unilateral Free Trade!
And if you are a Producer who disagrees, let me quote Bastiat for you:
Competition is Liberty - and the absence of competition is Tyranny.
You cannot Force us all to buy your products by using the guns of the customs department against your competitors.
This is TYRANNY!
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