It's The Wrong Index, Stupid!

In yesterday's post, I heaped well-deserved abuse on the editors of the Indian Express for the propaganda, lies and deceit emanating form their lead editorial of the day. Later, in a footnote, I wrote about a Times of India editorial of the same day - but the electricity failed (for the nth time) - so, today, I would like to focus on this particular ToI editorial titled "Cause for Cheer" on the latest Human Development Index Report, in which India's position has supposedly improved. 


So what? Read this report from the same newspaper that says India leads the world in diarrhoea deaths.


And, anyway, the "education" we receive from our The State is all-balls. Even the IITs and IIMs suck. What to speak of the Delhi School of (Mathematical & Keynesian) Economics. What do kids learn but State Worship. They study "Indian Economics."


The editorial is "pro-reform." Good. But what is reform but LIBERTY? India has progressed somewhat in the past decade because State Obstruction to economic activity in some sectors has been withdrawn. However, much obstructionism and interventionism remains. This especially impacts the poor. Just try and open a simple beer bar in Nude Elly - and you will land up in jail!


Why don't the editors use the sweet word LIBERTY instead of that stupid word REFORM?


One reason: They have never heard of the Economic Freedom Index. There are now two or three of them - and these have been around for more than ten years. There is one from the Heritage Foundation - and it finds India ranked at 124 out of 179 nations, in the category "mostly unfree." There is another from the Fraser Institute and here India once again fares poorly. These reports show that less freedom means more poverty, more corruption, and lower economic as well as human development. The editors of the ToI are advised to check out these freedom indices, so as not to be misled by the statist Human Development Index, a UN/World Bank publication.


The Human Development Index makes its victim believe that there is a POSITIVE ROLE for the State in poor countries - to educate the people, etc. It makes the victim feel that, for human development, the State must do MORE.


The Economic Freedom Index does the very opposite. It proves that the State should be CUT DOWN if poor nations and people are to develop.


Since the ToI is "pro-reform," it should focus attention on the correct index.


In any case, all this is statistical jugglery - the output of "positive economics," which is Empiricism. This is the "intellectual cover for socialism." This is particularly true of the Human Development Index.


But, for whatever it is worth, whatever the "measurement of freedom" can yield, the Economic Freedom Index persuades in a different direction. It may not be "science" - but it is not evil.


Lastly, there is NO CAUSE FOR CHEER. 


We are not a free people. 


Tyranny rules. 


And the economy is NOT doing well. 


Do read this brief column by Niranjan Rajadhyaksha of Mint, that warns of approaching STAGFLATION.

It's Not Democracy, Dudes - This is LAPUTA!

Now that Team Anna has lost its sheen, and their India Against Corruption Movement has come apart at the seams, what do our mainstream editors have to placate the enraged public with but tired phrases extolling the virtues of "liberal democracy" in a SOCIALIST country with a SOCIALIST Constitution. The following is from a lead editorial in the Indian Express of today:

The rupturing of Team Anna’s superficial solidarities is also a reminder of the significance of much that they run down about representative democracy and the thoughtful, liberal institutions that undergird it. For all their contempt for Parliament, it is the one arena where an entire range of beliefs is accommodated and the friction of ideas is productive, where the desires of one ideological constituency are tempered by the encounter with another. The rise and ebb of India Against Corruption has only showed up, in greater relief, the rock-solid foundations of our democratic institutions.

How glibly they use the word "liberal" - which has its root in the word "liberty" - just as socialists in the USSA do, too. Which is why people like us call ourselves "libertarian." The word "liberal" has been corrupted. And as for the word "democracy"...

In the meanwhile, the Central State Police Minister called for new legislation to control all these "socialist political parties" - which would be better called "robber gangs." Of course, he wrote this when out of office!

And the Opposition leader, LK Advani of the BJP, has raised the cry that the Centre is "undermining the federal structure of the Constitution." Actually, this is a "quasi-unitary State."

Below the level of the quasi-federal State government, nothing exists!

No municipality works.

There are no Mayors.

Every city and every town is a shambles.

And we vote for a Parliament in Dilli Door Ast (Delhi is far away).

Or for an MLA in a quasi-federal State parliament.

We do NOT vote for Mayors.

And none of the parliaments we have actually work.

There is never any meaningful debate in any parliament.

And our prime minister chacha manmohan s gandhi has never been elected!


Bureaucrats of the IAS run cities and towns - DDA, CMDA, BDA etc. These are all CORRUPT.

Call this anything, you fucked-up editors of the Express, but do NOT call this "liberal democracy." Do NOT say that all ideologies are accommodated within this system - when liberals are debarred by the Representation of People Act. Do NOT fool your readers, who are voters, and who do NOT need your propaganda.

What is this, then?

We,, this is LAPUTA - the one travel of Gulliver that children are never allowed to read. Here, the rulers live on an island that floats above the population. Rebellions are literally "crushed" with the island landing atop the rebels! 


Like sonia gandhi landing at some village in her helicopter.


Of course, in the end, the evil rulers of Laputa are overthrown.

Read all about Laputa in this wiki.

Buy the book here.

Read the chapter on Laputa - and pass it down to your children.


PS: Read this ToI edit "Cause for Cheer" on the Human Development Index. These guys have never heard of the Economic Freedom Index. We are "mostly unfree" - and this State is called LIBERAL?

For The Inviolability Of Private Property - Worldwide

Let me begin with History - an editorial from an English newspaper, The Morning Post, dated 10 July, 1860. This was brought to my attention by a friend - and it shows clearly how the English mind looked at the concept of Private Property in that Golden Age of Classical Liberalism, the age of Queen Victoria and Gladstone:

Every Englishman is accustomed to pride himself with more than usual complacency upon what is called the sanctity of an English home. No soldier, no policeman, no spy of the Government dare enter it... Unlike the tenant of a foreign domicile, the occupier of an Englsih house, whether it be mansion or cottage, possesses an indisputable title against every kind of aggression upon his threshold. He defies everybody below the Home Secretary [what we in India call Home Minister]; and even he can only violate the traditional security of a man's house under extreme circumstances, and with the prospect of a Parliamentary indemnity. It is with this thoroughly innate feeling of security that every Englishman feels a strong sense of the inviolability of his own house. It is this that converts the moorside cottage into a castle. The moral sanctions of an English home are, in the nineteenth century, what the moat, and the keep, and the drawbridge were in the fourteenth. In the strength of these we lie down to sleep at night, and leave our homes in the day, feeling that the whole neighbourhood would be raised, nay, the whole country, were any attempt made to violate what so many traditions, and such long custom, have rendered sacred.

"Life, Liberty and Property" - this was the mantra of classical liberalism. But the US Declaration of Independence went for a different wording:

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable rights, that among these are life, liberty, and the pursuit of happiness.

Never mind the fact that all men are NOT created equal - and that classical liberalism only meant "equality before law." 


But never forget that without the Inviolability of Property there can be no Liberty to Pursue Happiness as one's subjective mind sees it - like cannabliss.


But things are much worse in the USSA today. It is not just that cannabliss farms are being burnt and homes raided by police SWAT teams looking for "drugs" - there is a huge amount of "eminent domain" abuse. Property in the USSA is no longer secure from State predation.


This was brought home to me when I went through Bruce Benson's (edited) new book titled Property Rights: Eminent Domain and Regulatory Takings Re-Examined published in association with The Independent Institute (free download here). It seems the US Supreme Court took a decision in the Kelo vs City of New London case that favoured eminent domain - and this led to a political backlash, and many US States, led by Oregon and Nebraska, passed "measures" to curb the misuse of this power. A conference was later held in which many leading scholars participated - and Professor Benson concludes that the papers presented - all compiled in this book - deliver the verdict that "much more significant limitations on government takings must be imposed."


Of course, not all the scholars are of this view. I found one paper by Steven Eagle of George Mason University' School of Law quite unsatisfactory. He argues that, in the case of assembling parcels of land for urban redevelopment, transaction costs are too high, and eminent domain is therefore justified. He argues for equity participation of owners in the new development. This is what we have tried in India - unsuccessfully.


In reality, transaction costs can be both "good" as well as "bad." If eminent domain was unconstitutional - if property was inviolable - any private developer wanting to assemble a large piece of land for whatever purpose would have to hire property agents as well as lawyers, and these would be "good transaction costs." If eminent domain is allowed, then he would pay off politicians, bureaucrats and policemen - and these would be "bad transaction costs." In the latter case, there would also be a "political backlash" - with further "social costs," like social unrest, demonstrations and the like. This is what we have seen in Mayawati's UP.


What I liked best about Benson's conclusion - that "instability, inefficiency, and inequity are the inevitable result of government planning and regulation" - are his quotes from Mises: like when Mises says that all arguments in favour of government intervention assume that the State is "benevolent and omniscient." Of course, it is no such thing. Politicians and bureaucrats have their own interests. And "knowledge" is fragmented in society. Another quote, from Mises' Omnipotent Government underlined the fact that State personnel HATE and DESPISE private property rights - because it strictly limits their powers. Just as the Gold Standard limits their budgets.


Anyway, whether Proudhon or Marx like it or not - ordinary people in both the USSA as well as India are fighting for the preservation of their properties. In India, Singur and Nandigram brought the Commies down! And their replacement is totally against eminent domain!


It is therefore pleasant for me to conclude with a piece of news from our own Supreme Court that says that these "socialist" dudes have passed a ruling on eminent domain that says "government is guilty of fraud if property acquired for public purposes is given to private firms."


Looks like we might get to inviolability before the USSA does :).


Life, Liberty and Property - that is the mantra. 


When your property is inviolable - when, as the editorial quoted above says, "no soldier, no policeman, no spy of the Government dare enter it," only then will the "pursuit of happiness" be free.


Think about it.

We Don't Get Fooled Again!

A Deutsche Bank report just reached me, warning of recession in the USSA. But their analysis is based on "consumer spending" - and this might suggest to many that another "stimulus" is required from the Fed.

This displays ignorance of Say's Law of Markets.

Last night, I watched a BBC programme called "The World Debate" on the current economic crisis, hosted by Nick Gowing. Of the four debaters, three were government people - Christine Lagarde, who heads the IMF; a guy from Obama's economic team; and a dude from the EU in Brussels.


Lagarde spoke of the need for the G-20 to get together and do what they did last time - and I could have cried out loud. That time the G-20 nations inflated their currencies along with the US Fed, which is what "central bank co-ordination" is all about, and which is why the crisis is so widespread today. Nick Gowing, on his part, asked for "more decisive political leadership."

This, too, displays ignorance of Say's Law of Markets.

Today, the Keynesians teach this law as follows:

Supply creates its own demand.

This incorrect formulation of this vital law makes their students believe that "monetary stimuli" create demand.


So, let us think things through: 


The supply of plasma TVs does not create the demand for plasma TVs. Yet, if cars sell, if jeans sell, if shoes sell, and if beer sells - then, and only then, will some people from these latter industries be tempted to buy a plasma TV. Thus, what Say's Law actually means is:

The sale of X gives rise to the demand for all non-X.

If X sells, it creates the demand for all non-competing goods.

So, if you want increased demand for your plasma TVs, don't go to The State asking for a monetary stimulus. Instead, make sure all those who do not compete with you are selling their stuff.


There is another reason for this: If you ask The State to inject a monetary stimulus, all that will happen is another boom-bust cycle - and inflation. The entire economy will be hurt, including yourself, and including all those who do not compete with you.


On the other hand, if you want those industries that do not compete with you to do well, you will NOT favour loose monetary policies based on the false idea of boosting consumption. Rather, you will realise the importance of SAVING and INVESTMENT. You will realise that these businessmen who do not compete with you will need to save and invest - in order to produce. You will favour "capital accumulation" and despise "capital consumption" - which is Keynesian-welfarism-inflationism. You will champion "sound money."  


That is, you will realise that production of goods and services boosts demand - not the production of money. Indeed, not even the production of gold boosts demand. All that happens then is that the price of gold falls - look at the history of Spain and Portugal when they brought gold and silver back to Europe from South America. Spain and Portugal never got rich. And there was inflation throughout Europe. Britain got rich not by digging for gold and silver - but by trading in nutmeg and pepper, and tea, and opium, and tobacco, and sugar, etc.

Increased production of "funny money" is a VERY BAD IDEA.

Thus, Nick Gowing is WRONG when he asks for "more decisive political leadership." The solution does NOT lie in politics. On the contrary. The solution lies in "private money" - and "free banking under law." 


That is: the size, scope, powers and resources of The State and the politicians must be drastically cut down. Money must be given back to the people - to save and invest, to produce. That is how demand can be permanently boosted and boom-bust cycles avoided forever.


Indeed, the current crisis is BECAUSE OF POLITICS. Central banks and their member banks are collapsing. Politics lies at the root of this crisis.


So, let us NOT GET FOOLED. 


Paper notes are just a "money substitute." This is what the "promise to pay the bearer" indicates. Something "hard" is (and always was) real money - GOLD.


So, as the song goes:

I tip my hat to the New Constitution,

Take a bow for the New Revolution,

Smile and grin at the change all around me,

Pick up my guitar and play,

Just like yesterday,

Then I get on my knees and pray:

WE DON'T GET FOOLED AGAIN!

While that covers widespread miseducation in the USSA, Britain and Germany, let us now turn to our own country.


Did you know that both Amartya Sen and chacha manmohan s gandhi were students of Professor Joan Robinson in Cambridge - who was Keynes' right-hand man, and who made it her "mission to destroy Say's Law"? It was Joan Robinson who cleverly coined the "supply creates its own demand" nonsense.


And, as I wrote the other day:

Without Sound Money - what is the State 

but a band of robbers?

That should take care of Kapil Sibal's "(mis)education."


Let us now turn to Palaniappan Chidambaram, the Central State Police Minister, whose name has cropped up in the 2G scam. There is a report written by the Political Editor of The Sunday Guardian that says that in the Nira Radia tapes, A Raja told Radia that "PC got a lot of money."


The Central State's Police Minister is corrupt?


And he has been police minister since the 1980s - and there have been no police reforms. Policing has just got worse. Now, road deaths total over 2,00,000 per annum - and the police don't even possess the "knowledge" to fix things.


We must ABOLISH THIS STATE. And replace it with honest civic corporations - one in each city and town.


A Second Republic!


A Republic WITHOUT any police - like the England of old, before Peel set up the Bobby. Like India of the Company, before the Crown passed the Indian Police Act in 1861.


TORTS - which are "crimes against the individual" and for which financial compensation must be paid by the tortfeasor to the victim: this will be better than any "criminal justice system." Anyway, ours doesn't work. And the minister is corrupt. Indeed, the Entire System is Corrupt.


So let us vow to throw the whole thing out, beginning with the Central Bank, and ending with the State Police.


Liberty! Property! Justice! The Pursuit of Happiness, Subjectively Defined!

WE DON'T GET FOOLED AGAIN!

(This turned out to be a 5-part series on Say's Law. The next post can be read here.)

Only Liberty And Property, Dudes

I found a strange article - actually a sort of book review - in Mint the other day, with the strange title:

More literacy + More per capita income= More democracy

And the sub-title read:

Whether education promotes democracy or the causality is the other way around, has been the subject of a heated debate, with some economists saying that institutions are the prime engine of growth, while others view human capital as the root cause of economic development

And, at the bottom, was the author, 

Manas Chakravarty's, conclusion:

Developing countries in East Asia, for instance, slowly became more democratic as they became richer. That could hold true for China as well. And for India, the success of the Sarva Shiksha Abhiyan and the concomitant higher levels of literacy, together with higher per capita income, will lead to a more meaningful participation in our democracy.

Nothing could be further from the truth.

Note that the author never mentions the sweet word "Liberty." Nor that other sweet word "Property." We have neither - but we have "democracy." It is democratic legislation that banned 70,000 dancing girls in Bombay - and put some 5,00,000 musicians, bartenders, waiters, bouncers and cooks out of work. It is subordinate legislation that does not permit anyone to open a simple beer bar in Nude Elly. 


Yet, we are told we have The Vote. But you cannot eat The Vote; nor can you feed it to your family. Liberty is what you need - not The Vote.


And as for State Education: There are lots of people who could survive very well without formal education - like dancing girls and musicians.


There are lots of people who know something valuable that no formal education can teach them - like the tribals who "know" how to distil mahua from a jungle flower of the same name. They need Liberty.


Democracy is "the god that failed" - and this is clear when we look at Europe and the USSA today. With a "time preference" of just five years, democratic rulers "loot and scoot." Lord Keynes has given them the ability to do so even better. And their "education" (and their "intellectuals") have just endorsed Keynesian and socialist myths. 


If you read Hoppe's book, you will find a clear demonstration of the fact that "traditional monarchies" were better than democracy - because then, the ruler was "under the law," the people had liberty as well as property, and the ruler's time horizon was limitless, because his son would take over after he died, and so he had the desire to keep on increasing the capital value of his State. 


Under democracy, all we have, internationally, is "capital consumption" - which is the road to "de-civilisation." Just wait a few months, and you will realise how The Vote has destroyed the world. Especially "western civilisation." 


Destroyed.


Apart from Liberty, people need the inviolable right to Property - because this unlocks the "mystery of capital." As Hernando de Soto has shown, through field  studies all over the Third World, from Bangladesh to Egypt, poor people own property in these "poor nations" - property worth trillions - but possess no "titles." This bars them from Capitalism. They remain poor - forever. They live in shantytowns.


The sort of book that Manas Chakravarty has reviewed for his column is a good example of the kind of "empirical research" the subject of Economics does NOT need. There is no theoretical proposition in this subject that can be either established or proved by such research. The theories of Economics are best thought through by the economist in an armchair - and then used to confirm reality in the outside world. 


The Science of Economics consists of "looking out from within the consciousness." The importance of Liberty and Property are embedded within our consciousness. 


It is tragic that a columnist who purports to talk "Simply Economics" loses sight of his objective, gets entangled in pointless "empirical research," and then arrives at conclusions that support the ambitions of our Predatory State. 


So I go beyond what I said the other day:

Our poor people need Liberty and Property - and Nothing Else. 

They do NOT need Welfare.

They do NOT need Miseducation.

They do NOT need The Vote.

PS: The picture above is of John Locke, who wrote, in 1691, "where there is no Property, there is no Justice."

On Anna Hazare... And Bangalore's Metro

I thought that this perceptive article on India and Anna Hazare from TheDailyBell.com titled "The Corruption of India's Economic Miracle" is well worth a read. It rips a Wall Street Journal article on the subject apart - and I place the concluding remarks below:

For another, the article assumes that the current Indian vitality is the result of inexorable cultural and entrepreneurial shift. We would argue this is entirely incorrect. India's resurgence is driven by central banking money printing and may not be seen as a natural expression of industry and society.

It is extremely important that the progress of the BRICS be placed in perspective. Brazil, China, India, even Russia, all have aggressive central banking policies. China and India, especially, have economies that are obviously being stimulated by excessive money printing. Both countries have a problem with price inflation as a result.

Progress built on printing money from nothing is ephemeral. In America and Europe, thanks to the debasement of money and the vast resources it grants (temporarily) to government, economies can seem quite healthy  one moment and then ill the next.

Money printing hollows out economies. It distorts business and job growth. It makes people feel wealthier than they are in reality. In both China and India, economic implosions will eventually take place. It cannot be otherwise, because central bank money stimulation inevitably leads to an exaggerated business cycle and subsequent busts.

For this fundamental reason in particular, the Wall Street Journal article is flawed. India has not necessarily experienced a resurgence of business and market creativity. It is simply going through the same cycle of monetary stimulation that the European PIGS and America went through recently.

As Ludwig von Mises cautioned in his great book Socialism, an ideology he abhorred and battled against all his long life:

There is no evidence that social evolution must move steadily upwards in a straight line. Social standstill and social retrogression are historical facts which we cannot ignore. World history is the graveyard of dead civilizations.

We can go backwards any time.


And the proof of that is the photo above of the Bangalore Metro on MG Road. They have DESTROYED MG Road, the prime property in this Fair City, with this ugly overhead train. If it had been underground, the properties on MG Road would have trebled in value. Now, the open space around this magnificent thoroughfare has been blocked. Property prices may not rise much in this ugliness.

The Trial of chacha manmohan s gandhi - Part 5

Yesterday, I discussed the "Corruption of the Law." Today, I shall conclude this Prosecution with a discussion on the natural fallout of legal corruption - and that is Corruption of the Police. They become a "legislation-enforcement agency" - and all these amoral and immoral pieces of legislation passed by our Socialist Parliament are essentially Predatory, like the Foreign Exchange Regulation Act. In any case, the Indian Police are known to be Predatory on every city and town street pan-India. They only protect the VVIPs; they prey on the rest of us.

Let us begin with some History. The modern State, equipped with a Police Force and a Central Bank, is very new. Sir Robert Peel set up the London Metropolitan Police - the unarmed "Bobby" - only in the 1830s. They used to be jeered at on the streets when they first made their appearance. 

In India, the Honourable East India Company ruled without any police force. They had an army - but no police. The "civilians" of the HEICS roamed their vast districts unarmed and unescorted, maintaining land records while sitting among the peasants, settling disputes on time, providing Justice, collecting taxes in exchange for Property Titles - and, of course, building "roads, bridges and canals."

The Indian Police Act is dated 1861. This was immediately after the horrors of the Sepoy Mutiny of 1857, and the Government of India had passed from the Honourable Company to the British Crown. Victoria was now "Empress of India." It is an interesting coincidence that Rabindranath Tagore was born that very same year, in 1861. While Tagore dreamt of an India "where the mind is without fear and the head is held high," the motto of the Indian Police is "Fear is the Key."

Let us fear them not - if we want to be Free.

In this post, I will relate some anecdotes. The first of this is especially for the Free Press, because these events occurred on Bahadur Shah Zafar Marg, the Fleet Street of Nude Elly. I was then working with The Economic Times, and my offices were in Times House. One afternoon, Professor Christopher Lingle came calling - and I invited him out for lunch. There was an Udipi restaurant nearby. The alternative was the vast array of "street food" on the opposite side of the road. Cris is adventurous, and he opted for the street food. We ate all kinds of stuff, like the delicious papaya salad one guy makes, and we washed it all down with a nimboo masala soda prepared by a guy whose masala is his own secret formula. The sign on his stall says he has been in operation since god knows when.

A few days later, I bumped into Cris again at the Rajiv Gandhi Institute, where I had gone to attend a seminar. After the seminar was over, I had to rush to office to pen my editorial of the day, and Cris tagged along  with the special purpose of trying out the BSZ Marg street food once again.

But lo and behold! When we arrived we found that every single hawker and vendor had been evicted!

Cris, who is a very widely travelled man,  then made a remark that I have never forgotten. He said:

"The poor people of India are exceptionally honest. In any other country if such things happened, the people would have turned to crime."

That is the moral choice we all face - to survive through moral, voluntary and gainful exchanges in The Market, or to live off plunder and theft.

Continuing on the same theme, my second anecdote is about India's "super-cop" KPS Gill. Around 1999 or thereabouts, Professor Madhu Kishwar raised a big stink about police predation on street-hawkers and vendors, particularly in Nude Elly itself. She even made an excellent - and blood-curling - documentary film on the subject, which I hope, if she is reading this, she will put on YouTube. 

As a columnist and editorial writer with ET, I supported Madhu to the hilt. Finally, she called me for a meeting at the India International Centre. And who should be there but KPS Gill. We briefly discussed the matter of police predation on the poor - and Gill thundered, "You cannot stop it." As if on cue, Renana Jhabwala of the Self-Employed Women's Association (SEWA), whose members include women street vendors from all over India, retorted, "In my lifetime we will stop this." It was quite a sight seeing Renana, a tiny woman, say this to this huge, big super-cop. One can only wonder what "commands" such cops issue to their subordinates. There must be come "corruption of the mind" that makes them, in reality, not super-cops, but super-thieves.

My own horrible experience with the Karnataka cops is well known: arrested repeatedly, harassed, and even an assassination attempt. They serve their political masters. Just as KPS Gill killed thousands of "Sikh terrorists" without trial for Indira Gandhi and her CONgress. The Free Press hailed him as a "hero" then; in particular, Chandan Mitra of The Pioneer.

My concluding anecdote is not about cops, but it is extremely relevant nonetheless. While I was working with ET I had to give up writing in the "white papers" as I used to do while a freelancer. Thanks to Jug Suraiya I finally managed to edge myself onto the ToI edit page - and my monthly thunder began. One such monthly thunder was titled "Predatory State: The Black Hole of Social Science." The article has been preserved here. 

A few days later, I received a phone call from Professor ML Sondhi, a former Indian Foreign Service officer who became a JNU don and was then Chairman of the Indian Council for Social Science Research as a BJP appointee. Sondhi invited me for dinner - at the IIC, of course. I took Parth J Shah along as witness. During the course of the meal, Sondhi made me the following indecent proposal:

How can we co-opt you?

My stern reply: 

"I have studied too much Political Science to allow that to happen."

I am most certainly NOT getting aboard this Pirate Ship of State.

It is my firm belief that this Predatory State must be dismissed in toto, cops and all. And by all I include all their "co-opted" professors.

Let us live in the "natural order" of The Market. As a "Private Law Society." Let us also abolish the corrupt Reserve Bank of India, which funds all this corruption with its fraudulent paper notes. Inflationism must be ended permanently - especially so in a country where millions and millions are so desperately poor. I recommend my column on the Gold Standard, and another on Private Money.

Some people might want to be "conservative." To them I address the following question:

Which Department of our The State would you like to see conserved?

And as for the cops, they are nothing but what Bob Marley called "uniforms of brutality." Gandhi made a fatal error after Chauri Chaura. Let us be a wiser nation today. A wise nation that knows what Freedom really means. And where both order as well as morality come from: which is, The Free Market.

Shubh Laabh to all of you.

[PS: On the "natural order," I recommend my column defining "catallaxy." And on how the world can live happily without police forces tyrannising us, I earnestly recommend Professor Bruce L Benson's The Enterprise of Law: Justice Without The State, of which, I have just learnt, a new edition has appeared.]

My Sympathies Are For The Poor Alone

The June 11 issue of Outlook Business dedicated to "corporate social responsibility" (CSR) to which I had contributed against the motion was not available anywhere in Orissa, and I managed to find a copy only in the swanky Rajiv Gandhi Airport in Hyderabad. Yesterday, I read through the issue and quite frankly must confess that I have never read such a load of patronising and condescending tripe in my life before. You can find the entire issue here.

To begin, the proponents for CSR assert that "hunger is India's greatest problem" and they quote the fucking World Bank "measurement" that since 90 percent of Third World people survive on less than $1.25 a day, they must be hungry. I wonder if any of these bozos have ever walked the streets of our cities - like I do. This morning, for instance, here in Pondicherry, I breakfasted on 5 steaming hot idlis and one fat dosa for just 15 rupees (20 cents) from a roadside stall opposite the railway station - and that should keep me going till sundown. Lots of poor and hungry customers were being fed via the "division of labour." None had to buy "cheap rice" from our The State, nor did they have to grind it, steam it, fry it, or make coconut chutney. Just 15 rupees - and clean, healthy food at that.

But if we were to really examine the conditions under which these businessmen and women work to stave off real - and not imaginary - hunger, we will surely discover that the "health inspector" (there was a huge Public Health Department building nearby) preys on them, as do other predatory government agencies. This is a Predatory State - from Top to Bottom.

There are other problems such people face as well. For example, these food stalls never get water supply. They have to carry water from far distances. Further, if commercial space was increased, its value would fall - and these stall-owners would graduate to shops. 

Nearby was a very wide open drain that the French built to separate the "white town" from the rest. Even in the 1980s when I lived here I often told people that this should be covered and the space gained thereby used for shops - because the commercial areas were, even then, overcrowded. No one has thought of this during these 25 long years - while fools fed on fucking World Bank data feel concerned about "hunger."

Every single "philanthropist" arguing in favour of CSR has a deep desire to "educate the poor" - but these people do not need to be taught by Anu Aga or Shiv Nadar how to make idlis and dosas. Anu Aga - who sits on the National Advisory Council (NAC) that hangs around sonia suggesting ways and means of widespread "capital consumption" writes that she wants to educate the poor so that her engineering firm can hire trained people. In which case, she ought to set up a Thermax Engineering College - which is all that Thermax knows. Shiv Nadar writes that he is setting up a Shiv Nadar University to teach "arts & sciences" - but he doesn't say that State Universities should be shut down and top-notch foreign universities freely allowed to set up shop - for shop it is, and education, we all know, is a Big Business, and has nothing much to do with philanthropy.

There are some goras on their side as well - the head of Dell computers, some woman from Hewlett-Packard, and some "management guru" totally ignorant of even the basics of Market Economics. I recently bought a Dell laptop and threw it into the sea! Shouldn't these people focus on creating better products - as Steve Jobs of Apple is doing. I have earlier written how both Azim Premji as well as Bill Gates are engaged in "false philanthropy."

Then there is Mahindra Motors writing about how they renewed a forest near their plant in Nashik. But forestry and timber could be Big Business for the poor. Imagine sandalwood, ebony, teak, rosewood and mahogany being freely grown instead of being State Property. And shouldn't Mahindra's own products be better? I recently drove a Mahindra Scorpio jeep my friend owns - and gave up! Felt like a bloody truck!

There is also a "measurement" of CSR provided by the Tata Institute of Social Science (and another by KPMG). What has this Tata Institute ever contributed to our understanding of society? And have you ever taken a ride in a Tata Indica - as I did from Madras Airport to Pondicherry? Incidentally, the library at the Delhi School of (Mathematical) Economics is named after Sir Ratan Tata.

We have also had a Birla Institute of Technology co-existing with the Ambassador car. Not to mention a Bajaj Institute of Management.

To understand what can really help the poor, you must read ALL of Peter Bauer, who was a "development economist" who toured the entire Third World, observed the poor in markets - especially "informal markets" - and wrote about what he saw. It was he who said something very important about Third World poverty - and that is:

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

He then went on to add:

Economic achievements are made in markets.

All these corporate types who profess to being philanthropic ought to read Samuel Smiles' Self-Help, written in Victorian England - a book that outsold the Bible, and fired the Japanese in their catch-up with the West. It tells the stories of many, many people of humble origins who struggled against great odds - including poverty - and rose to incredible heights through sheer effort, perseverance and dogged hard work. Such books are positive motivators - and I am proud to say that I personally edited and wrote a foreword to an Indian edition of this great book, published by Liberty Institute many years ago.

Poor people need Liberty. They need Property - including commercial property: shops. They need roads. They need modern modes of transportation, especially urban transportation. And they need encouragement. They do NOT need this patronising and condescending CSR bullshit - that too, from a bunch of CRONIES of our The State, who do not want to compete with foreigners themselves, and want to keep on selling second-rate "capital goods" to our poor people. Such people deserve to be DISGRACED.

We have had endless people faking concern for the poor - from Nehru to Manmohan to Sonia to all the NGOs put together; and now we have these rich bozos who know nothing and want to "educate" poor people who are already possessed of knowledge valuable in the market. They never utter the sweet word LIBERTY! - only because they fear it. They thrive on the misuse of State Power: the "customs barrier." Which is why I tell all poor people - never buy swadeshi; always buy videshi. Buy the best. Unilateral free trade - for the poor, against all these bozos. I have no sympathy for these bozos. All my sympathies lie with the poor.

The only true friend of the world's poor was Peter Bauer - and do read my eponymously titled tribute to him.

In the end, if there is anything that everyone needs to understand, it is Economics. It is this vital subject that is being mistaught by our The State in India, as I pointed out yesterday. If these CSR bozos go about "educating" our people, with State support, it will be DISASTER!

To conclude, let me quote Ludwig von Mises:

Whether we like it or not, it is a fact that economics cannot remain an esoteric branch of knowledge accessible only to small groups of scholars and specialists. Economics deals with society's fundamental problems; it concerns everyone and belongs to all. It is the main and proper study of every citizen.

I hope you get the reason for my strong moral outrage.