Last year, the Supreme Court of India asked for the reasons about why the government allowed the ruin of food grains in governmental stock facilities and go-downs while many millions in India were suffering hunger and malnutrition. According to newspapers, a fifth of India’s population remains undernourished and some 3,000 children die each day from hunger-related causes while around 6 million tons of food grains were ruined in the year 20121 . Obviously, it was a clear indication that governmental intervention in the market causes extreme failures and loss. However, instead of learning this clear lesson from the situation, the government and the socialist bureaucrats of India suggested furthermore interventionist approach towards the issue and in 2013; the government announced their will to pass the Food Security Bill in the parliament. The food security bill suggests that every citizen has a right to get food (as a privilege of being a citizen of India) and the government has a duty to ensure that nobody is suffering lack of food or hunger. In other words, food security bill suggests that food is a human right. While this bill is still hanging in the parliament because of the uproar of opposition parties …Read the Rest
Economics
Austrian Economics and Objectivism : Austrian Value Theory and Objective Value Theory
Logic can be expressed in a number of ways; however, if it is sound logic, no expression of it can negate other expression. This is true with the case of differences between Austrian school of economics and the philosophical movement known as Objectivism. However, different terminologies often create various misunderstandings and confusion that furthers the yawning gap between these two branches of libertarianism. Austrians often remain in influence of Ludwig von Mises and Murray N. Rothbard, on the other hand, Objectivists enjoy impressions of Ayn Rand. Recently, I observed a similar debate over the value of Gold. There are three Classic value theories of goods namely, intrinsic, subjective, and objective. First, I will discuss about these three classical value theories and then I will discuss about the Austrian value theory as supported by Austrians and the Objective theory of Values as supported by Ayn Rand and other Objectivists. Classical Concepts of Value Theory Concept of Intrinsic value of a good: According to Richard Cantillon, who was the first of the modern economists, the intrinsic value of an object or good is the measure of land and labour that has been used in production of that good. However, Cantillon conceded that …Read the Rest
Mounting Fiscal Deficit Cliff of India
The biggest advantage of Indian government is that the Indian economy is still going through the process of disinvestment which means that the Indian government has a lot of assets in business and service sectors that can be disinvested to attain valuable monetary cash to do away with the yearly governmental expenditures and the national debt. The actual motive of economic reforms should be the process of limiting the government. The lesser the governmental control over economy will be, the better will be the situations for development, progress and prosperity of Indian individuals. However, there hardly are any hopes for reducing the interference of our government in our daily lives, nor are there any signs of any reduction of governmental interventions in the Indian economic sector. Rather, the Indian government that was wholly socialistic before 1991 is now gradually turning into a serpent of mixed economy that is holding a strong grip over all sectors of productions and service provisions through its fangs of corporatism. At one hand, they are disinvesting major production and service sectors in parts, allowing infusion of foreign currency in Indian markets, on the other hand, with king size government share in all these sectors and …Read the Rest
The Fraudulent Mix of Government, Corporate and State Bank of India
While the Indian economy is still suffering from the high inflation rate (of around 9.6% in October 2012), Indian State Bank is also going through the issues of liquidation crisis to solve which, the government recently announced a bailout package of Rs 4,000 crore to help the bank in maintaining its capital adequacy levels. It should be noted that currently, SBI is required keeping 6 per cent of their deposits in cash with the Reserve Bank of India as CRR (Cash Reserve Ratio). In addition, the State Bank is also required to keep 24% of its total deposits as SLR on which, the government pays the interest as this SLR (Statuary Liquidity Reserves which are used to provide debt funds to the government). The remaining 70% can be used by the banks to offer it to the borrowers who desire money for their personal usage and business investments. What does it means? The State Bank of India owns nothing, it is a service provider to which we deposit our money for safekeeping and protection and in return, we get a right to use our deposits at any time. That is, we give our money for the bank not to use …Read the Rest
