Ironical that the founder of capitalism USA is turning socialistic and India who in all these years could never make up its mind which way it leaned is becoming a booming capitalistic society.
And so we have the US government pumping money into a Lehman Brothers or a Citibank or GM to save it from collapsing and rendering thousands jobless. Jobs were saved but no wealth was created – how long can these jobs be sustained? A case in point is GM registering bankruptcy and the govt has to step in again – to save jobs! Does this remind you of the Russia before Gorbochev!
Pumping money without regulation and clear strategies will not yield results as the events of the past few months are proving in the US. When the state decides how much each person earns regardless of contribution that is regulation but when the state while investing into a business venture puts a conditional strategy in place- according to me that is not regulation but capitalism – maximizing ROI! What the US is doing looks so similar to the India in the 70’s and 80’s when govt pumped crores of rupees to keep loss making PSU’s afloat to ‘save jobs’ without any recovery in sight.
And look at India – the Economic Times headlines today talks of Reforms II “begin with the selling off of the loss making PSU ITI”! And the Reserve Bank will probably use this money to reduce our current fiscal deficit. So here we have in India a reverse of what the US is doing – we are disinvesting in loss making PSU’s and opening them up to free market forces to compete with the rest and survive if they can.
India’s Finest Economic hour is perhaps just around the corner!
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