Praxeology: My Reflexions on India

The Covid-19 Pandemic has sent the Indian government in a tizzy. Modi government has panicked like anything and without any kind of prior very careful thinking or planning Modi has announced a   21 day lock down   of the whole country of 1.35 billion people. Almost all production processes in the country have either totally shutdown or working at much   lower capacity   now. This means, huge   supply crunch   is coming. Moody’s has already lowered Indian GDP forecast to just 2.5% for calendar year 2020. The actual growth very likely is in reverse gear now.  No one knows how the millions of rural folks are surviving right now, in Modi’s own constituency Varanasi children are forced to   eat cattle grass   with salt and water, and within 3 days of lock down even urban areas are now running out of essential supply of food etc., items because whole supply chain is on a stand still. Amidst this historic lock down, Modi has taken control of all...

Recently the American president Donald Trump was on his maiden visit to the Indian nation state. During his visit to New Delhi, India’s capital, the city witnessed big   communal violence   in which, so far, around   53 people   have lost their lives. Hindu nationalist goons clashed with the Muslim mob. In these clashes, one police constable and one IB (Intelligence Bureau) officer have also died (murdered by the mob). This violence was in the making since the Hindu nationalist Modi government passed the controversial citizen amendment bill coupled with NRC, which many are now fearing will make millions of Indian Muslims stateless. UN Human Rights Commission chair has now   filed an intervention application   against this act in the Indian Supreme Court. CAA and NRC plus the continuing violence in different parts of India have given a   bad name   to India, especially the Modi government. How did this happen in a country which is known for giv...

With   falling direct   and   indirect tax   revenues (sic), the Modi government is desperate to raise more money to spend on their fiscal programs to allegedly bring the economy   out of the slump   which they think is caused by a   fall in aggregate demand . Experts and even BJP MPs like Subramanian Swamy are calling this   tax terrorism . I am going to analyze two questions in this article: One, is the economy in slump because of fall in aggregate demand? And two, can this tax terrorism to raise and then spend more money bring the economy out of this slump? Let’s see. In my   previous article   I have tackled the issue of whether a fall In aggregate demand is responsible for this slump in the economy so I am not going to spend time on that question here. As I have said there, demand is never a problem for any economy. Supply is. And that supply is now chocked by the Modi government via their knucklehead policies like demonetizat...

Recently I was interviewed by Mr. Yohan Tengra of   Anarchy for Freedom    about how an Anarcho-Capitalist   Private Law society   will solve our myriad of problems like pollution, national defense, protection of property, inflation, unemployment etc. Statist people frequently argue that without the state (aka government) there will be   Anarchy , which they allege to be a state of chaos. But in reality Anarchy only means   absence of a central authority . Far from being a chaotic society, an anarcho-capitalist private law society will solve our problems in a much better and moral way. Listen to my discussion of these important issues below.

Recently Mises India President Dr. Madhusudan Raj sat down with Mr. Yohan Tengra of   Anarchy for Freedom   to discuss India and its economy and to give insights on the root cause of what has created the many and various economic and social problems in India. He discussed subjects such as: Is Arvind Kejriwal our potential savior? Why we are not taught Austrian economics in school? Impact of Soviet styled Socialist central planning on India How government disinvestment and privatization compare to real free market privatization? Libertarianism v/s Socialism Why profits aren’t evil (& the functions of profit & loss How central banks (the RBI) create boom & bust cycles  

The Indian political scene, just like any other country’s political scene, is full of leaders who are good at the   art of leadership   of humbuggery and manipulation. Today many people in India are worrying about Narendra Modi government, just like any other past governments, as it also did not fulfill its election campaign promises. Narendra Modi was, and still is, seen as a savior by many Indians when they voted for him in 2014 and again in 2019. They thought Modi will bring peace and prosperity in their lives, but now after 6 years of his reign their dreams are shattered. Ever so hopeful and helpless, people of India are now turning their attention to a new kid on the block i.e., Arvind Kejriwal. Many are putting their hopes on him. The damage that Modi government is doing to India’s economy and society, people think Kejriwal can undo and put India on the path of prosperity. The gullibility of Indian voters is limitless. Many sane minded people are falling for Kejriwal...

Amidst the on-going severe recession in the Indian economy, the Indian central bank RBI is trying to do something impossible. Driven by its   Keynesian   logic of lack of aggregate demand as the root cause of the recession, RBI is trying to boost both consumption and investment at the same time. In its recently published bi-annual Financial Stability Report RBI   said , Aggregate demand has slumped in Q2FY20 … Reviving the twin engines of consumption and investment while being vigilant about spillovers from global financial markets remains a critical challenge going forward. This is theoretically and practically an impossible task. Let us see why. Income, Consumption, Saving and Investment Both consumption and investment come from income and so we need to see the definition of income first.   Income refers to the flow of new consumer goods (and services) that an individual has the potential to acquire during a period of time   ( Murphy 2010 ). A ...