Praxeology: My Reflexions on India

Yesterday's newspaper The Hindu reported that India's tainted home minister Mr. Chidambaram wants to raise taxes on rich people (you can read the full story here ). He was quoted as saying, “We must raise the tax revenue to defend [the expected aggregate decline of resources]. I know many people won't like this. But, I think, I can summon up the courage to make the statement...I [was] the Finance Minister who slashed your tax rates. Therefore ... you must be prepared to pay higher tax rates, especially the rich must be prepared to pay higher tax.” Is Chidambaram right about his proposal for raising tax on rich people? Is his policy economically and financially sound? Readers of my blog will know my answer that any kind of taxation is an outright theft of peoples' hard earn money. But I will let one of the greatest economist of 20th Century, Ludwig von Mises, answer these questions. I am reading his extremely important book The Causes of the Economic Crisis right now a...

Yesterday Indian prime minister Dr. Manmohan Singh delivered a speech in New World Order's headquarter i.e., UN (United Nations) in Washington D.C. I just casually read couple of paragraph and found many things which are worthy of critical comments. Below I am critically analyzing PM's speech. PM's speech excerpts will be quoted and will be followed by my comments. 1. Till a few years ago the world had taken for granted the benefits of globalization and global interdependence. Today we are being called upon to cope with the negative dimensions of those very phenomena. Economic, social and political events in different parts of the world have coalesced together and their adverse impact is now being felt across countries and continents. Comment: This means that neither the prime minister nor his team of economic advisers had any idea about the economic bubble which was developing in the western world. With the whole world (except few Austrian economists) he too took...

Recently the Business and Economy magazine which is published by IIPM asked me to write a column on Indian economy's future. They specifically wanted to know whether the Indian economy will overheat i.e., will it experience high rates of inflation or possible hyperinflation. Below I am reproducing my column which I wrote for IIPM. This will give an idea to all of you for what economic dangers we all are facing in coming future.   Will the Indian Economy be overheated by 2012? By Madhusudan Raj, Alumnus, Ludwig von Mises Institute, Auburn, Alabama, U.S.A. and Visiting Lecturer in Economics, Department of Human Resource Development, Veer Narmad South Gujarat University, Surat, Gujarat, India. If I reinterpret the economic meaning of this nonscientific Keynesian language of overheating [1] of the economy then the question is, whether the Indian economy will experience very high level of inflationary effects by 2012? Although we Austrian economist ...