Does capitalism destroy jobs?

If by capitalism one means “free market exchanges and production through the use of privately owned capital”, then indeed capitalism destroys jobs -- those jobs that are made redundant by increasing the productivity of labor. Imagine an economy which only produces food, and the only input to food is labor. Further imagine that the productivity … Continue reading Does capitalism destroy jobs?

The Panchatantra — Textbook of Niti

The following is an extended edited excerpt from Arthur Ryder's introduction to his translation of the Panchatantra. What's the book about? Ryder begins his introduction with: "The Panchatantra contains the most widely known stories in the world. If it were further declared that the Panchatantra is the best collection of stories in the world, the assertion … Continue reading The Panchatantra — Textbook of Niti

Did Britain Impoverish India?

Asking "Did Britain impoverish India?" is like asking "Is water wet?" Of course, Britain impoverished India during their rule as the colonial masters of India. To extract wealth from a colony and exploit its people is the primary motivation for colonization. Expecting the colonial masters to be a benign, self-sacrificing force is delusional. Colonization is not … Continue reading Did Britain Impoverish India?

Saving and Investment

To understand the relationship between producing, consuming, saving and investment, it is useful to start with a simple story. Imagine a Robinson Crusoe economy -- just one person in it. RC's consumption is limited to what he can produce by fishing, hunting and gathering. He allocates his time either laboring or enjoying leisure. If he … Continue reading Saving and Investment

Sardar Patel, Power, Persuasion and Statue

The Sardar Patel statue, also called "The Statue of Unity" which is to be unveiled tomorrow Oct 31st, is the biggest statue in the world at 182 meters tall. Built at the cost of Rs 3000 crores, it must be impressive to behold because of its sheer size. It is supposed to represent unity of … Continue reading Sardar Patel, Power, Persuasion and Statue

Corruption Perceptions Index, and Jesus and Mo

The 2017 Corruption Perceptions Index (CPI) of Transparency International ranked Pakistan at 117 out of 180 countries. India was ranked 81, worse than China at 77. The top spots are (in order)  New Zealand, Denmark, Finland, Norway, Switzerland, Singapore. US comes in at 16, Japan at 20, Bhutan at 26. The correlation between poverty and … Continue reading Corruption Perceptions Index, and Jesus and Mo