Mr Katju, who is a retired supreme court judge, provided his insights into “abolishing unemployment in India” on social media yesterday. According to him, Soviet Russia solved that problem by “raising the purchasing power of the masses, and thereby rapidly expanding the economy and consequently abolishing unemployment.”
Mr Katju explains in subsequent comments how the scheme is supposed to work. It’s about reducing prices to increase “purchasing power”, he says. I don’t think he understands what prices or purchasing power means.
I have appended at the end of the post a few screen captures of Mr Katju’s submission to facebook and a couple of comments from his readers.
Mr Katju notes the steps the Soviet government took included the steady lowering of commodity prices, stepping up production, and the creation of jobs that abolished unemployment. He further notes that while the US was suffering the Great Depression of 1929, the Soviet economy was “rapidly expanding.” While not endorsing the Soviet method for India, he says that India should do something so “we can raise the purchasing power of the Indian masses and thereby rapidly expand the Indian economy, which is the only way of abolishing unemployment in India.”
He ends by writing, “The central point, and therefore the main problem before India, is how to raise the purchasing power of the masses? Do we follow the method of socialist countries, or some other method?” Continue reading