Praxeology: My Reflexions on India

The former governor of RBI and the chief economist of IMF Dr. Raghuram Rajan recently told BBC that, I think capitalism is under serious threat because it’s stopped providing for the many, and when that happens, the many revolt against capitalism. He said governments cannot afford to ignore social inequality when considering the economy. Is Rajan correct? To understand whether Capitalism is under any kind of serious threat or not we first need to know what Capitalism is? Robert Murphy, in his book Lessons for the Young Economist , gives the detailed definition of Capitalism, A capitalist system is based on private property. In this institutional arrangement, goods and services are owned by individual private citizens, or by groups of such citizens. In a pure capitalist system, not only every house and car, but every tractor, acre of farmland, and assembly line are all respectively owned by private citizens, sometimes organized in groups. A good’s owner is the...

The American journalist Randolph Bourne in his famous essay, The State , said , The moment war is declared, however, the mass of the people, through some spiritual alchemy, become convinced that they have willed and executed the deed themselves. They then, with the exception of a few malcontents, proceed to allow themselves to be regimented, coerced, deranged in all the environments of their lives, and turned into a solid manufactory of destruction toward whatever other people may have, in the appointed scheme of things, come within the range of the Government’s disapprobation. The citizen throws off his contempt and indifference to Government, identifies himself with its purposes, revives all his military memories and symbols, and the State once more walks, an august presence, through the imaginations of men. Patriotism becomes the dominant feeling, and produces immediately that intense and hopeless confusion between the relations which the individual bears and shoul...