Recently, Rahul Bajaj1 expressed his frustration about the possibilities of Indian government bailing out the Kingfisher Airlines. He clearly said, “I am a proud private sector man and I don’t see any logic of bailing out any private sector company either for sake of employees or customers, “If it’s a free market economy, those who die must die.” Obviously, he is suggesting the right way of action. No private sector company should be bailed out or offered any help by the government. In fact, government should not bail out anything, anyone. Is there a way to oppose and restrict the government from offering any stimulus, help to Vijay Mallya so that he may save the sinking boar of Kingfisher Airlines? Why bailing out is wrong? Bailing out is simply wrong because of the fact that a business in a free market fails only if it is not viable. Since Kingfisher Airlines is suffering, it certainly means that the manner in which this business is being managed is not appropriate and the money invested in Kingfisher Airlines is actually bad investment. If government will add more money in Kingfisher Airlines, it will increase the amount of bad investment. Bad investment always …Read the Rest
Tag: Keynesian economics
Central Planners Planned British Riots
Britain is the country best known for its social welfare schemes. Free health care system (NHS), free Universal Education System, pension and monetary aid schemes for single moms and elderly people and a lot many welfare policies that attract people to live in UK. Britain is the country with absolute Gun Control and least number of Illegal guns. Yet something happened miserably wrong with British economy that created havoc in the country and those people, who were being considered as most peaceful and rich are rioting on roads burgling in shopping malls. Britain is in shambles right now, People are killing each other and they are committing suicide. The only reason behind this is the Social welfares, Fiat Currency (Euro) and communist mind set of British central planners. The real sickness of British society is the constant-inflation policy of the British government and central planners. Fiat currency inflation is also known as indirect robbery which always works under a disguise of progress. Since 1931, British government is corrupting the money supply by promoting an average rate of around 6 percent per year. This is constant destruction of the wealth of the nation which is stolen by the corrupt, selfish hands …Read the Rest
Recession Comes Back Again
The U.S Recession is back again and it is wide spreading throughout the world. Recession is back even though President Barack Obama and Fed did everything possible according to Keynesian irrationality of breaking windows to save the United States against the previous economic meltdown of 2008. In 2008-2009, when Obama introduced huge stimulus packages to save American jobs by investing American tax-payer’s money in those public and private sector ventures which were faulty, irrational and corrupt, he thought it will help America to retain its losing glory. The effect of his Keynesian steps were inspired and favored by the master of Keynesianism Mr. Paul Krugman who won the Nobel Prize in Economics on October 13, 2008 and Obama was also convinced about the magical skills of Ben Bernanke and while appreciating his magical skills, Obama said Bernanke’s background, temperament, courage and creativity helped to prevent another Great Depression in 2008. However, there were people who warned Obama, Bernanke and others that depression is nothing but the much needed corrective measure or the medicine for the ill economic conditions of the United States. They suggested that the market shouldn’t be disturbed further by inflicting more fiat currency in it as that …Read the Rest
Why Global Stock Markets are Plunging?
Depression Hits Stock Market Again The Keynesian economists failed yet again and still they are adamant enough to assert that economy will bounce back. The truth is the whole world is about to be entrapped in the fog of yet another depression. So what happened to the mighty economic stimulus that was offered by the U.S Government to save American market? Every sane person opposed the move of Barack Obama to bail out those faulty banks and automobiles companies which were at the verge of sinking down, yet he thought he will save the United States and the world against the economic bursts that defied the fake economic boom in global markets. Now the conditions are more adverse, the American government is facing dangers of defaulting and it needs help from other economies to bail it out. Right after the Barack Obama succeeded in increasing the national debt ceiling, Standard & Poor’s decided to downgrade the rating for US debt from AAA to AA. American economy faced another jolt when the Chinese government criticized US economy and said that the “good old days” of borrowing were over. However, it is not the crisis of United States alone. Every part of …Read the Rest
