How to Shrink India

Only recently did I become aware that there is a local politician in Mumbai named Raj Thackeray and that he has been inciting people to violence to stop non-Marathi speaking people from migrating to Mumbai. The man, in my considered opinion, is a certifiable idiot and an evil one at that. But then there is nothing particularly remarkable in Raj Thackeray’s quest for votes through divisive politics. The British quite successfully implemented it and ever since political independence, politicians across the spectrum have been dividing India along regional, caste, and religious categories. Mohandas Karamchand Gandhi, instead of erasing caste distinctions, even went so far as to name a significant portion of Indians as “harijan” or “children of god” — thus implicitly, according to his adopted Abrahamic theology, categorized the rest as “children of satan.” The present Italian Gandhi continues that fine tradition and implements policies that discriminate against people that do not subscribe to some Abrahamic sky-god. I wonder if Raj Thackeray is going to be invited to join the Congress Party, seeing that he is a master of divide and rule?
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The French AGV

Imagine getting to New Delhi from Mumbai by train in less than 4 hours instead of the 18 hours it currently takes?

France unveiled the successor to the TGV, the AGV — Automotrice Grande Vitesse, or “self-propelled high-speed” train. It’s top cruise speed will be 360 km/hr. The TGV has two engines, one at each end of the train. The AGV has motors under each carriage and is lighter and more energy efficient. The TGV holds the speed record for conventional rail when it touched 575 km/hr last year in April. The current batch of TGV have a top cruising speed of 320 km/hr.

I love trains and particularly like the TGV. Years ago when I was traveling around in Europe, I traveled quite a bit on the TGV and it was far more exciting than flying. There is something romantic about trains.

All this is very exciting for me. I look forward to boarding the AGV one of these days. But it is also a bit sad. India will never have anything that exciting. India just does not have the imagination. We are quite happy with our trains that do an average of 25 km/hr and our top speed trains average around 80 km/hr. It’s strange that passenger train service began in India over 150 years ago. We are a slow moving people.

[Related post: An Integrated Rail Transportation System.]

Knowing Basic Microeconomics — Part 2

This is a follow up to the previous post on Knowing Basic Microeconomics where I had claimed that micro theory is essentially codified common sense and that it is never too late to learn a bit of microeconomics. Many people have written to me (and some commented on the post) that they would like references to some work that makes micro theory accessible to the lay person.

I am not familiar with what is available and therefore I am not qualified to answer that question. I have read a few non-academic books on economics but they are the type that attempt to address the concerns that are usually macro in nature. I find macroeconomics only mildly interesting. But macro stuff (dare I call it nonsense?) is what you normally read in the popular press — stuff about the business cycles, interest rates, unemployment, inflation, etc. Pundits on TV and newspapers are always going on about GDP growth rates and how the developing economies are doing and what will happen in the year 2030 or some such remote date. I find it uninteresting because most of those stories are “just so” stories and everyone has his favorite.
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Of Kakistocracies, Principals, and Agents

Enclaves of Private Luxury

Just off the expressway from Mumbai, on the road leading into Pune, you see huge billboards advertising new housing developments with fancy names like “Whispering Pines” and “Orchard View” crowding each other, promising idyllic lifestyles of lavish comfort. They convey very urgently a palpable sense of how rapidly the market for private luxury dwelling is blossoming thanks to increased salaries and easy housing loans.

These billboards reflect the increased aspirations of the growing upper middle-class in India. Curiously, one set spoke to a deeper and disturbing reality. One billboard said, “Power Cuts? No problem. We have 24-hour generator backup.” Another one down the road said, “Water Shortage? Have a shower. We have our own water supply.”
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My Indian Express column on the OLPC

Yesterday, the Indian Express carried a column by me on the OLPC, a favorite topic of mine. There’s nothing new in there for those who have read my views on the OLPC before. The text of the column below the fold.
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Knowing Basic Microeconomics

Smart people think alike. Or at least they reach similar conclusions. Take Charlie Munger and me. We reached the same conclusion about the importance of microeconomics. Seriously though, I think it is a crying shame that people in general don’t have even a nodding acquaintance with the basic principles of microeconomic theory.
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Can Money Simply Disappear?

In a recent comment Ashutoshg says:

You might have heard about 7bn$ fraud at Societe Generale in France. As news says, The guy who is responsible didn’t got rich because of the fraud. He just traded badly. Bank lost it and that guy didn’t make it then, where did this money go? Who got rich? Can money just disappear? Please explain.

Indeed, money can simply disappear without a trace. But first, let me tell you a story.
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The Resurrection of Gandhi

Arvind Lavakare in an article titled The Myth of Mahatma Gandhi notes that the Gandhi icon had been losing its sheen for years until the present government began giving it a nice new varnish. Maybe it is an attempt to “to fuse the original Gandhi image with the Italian one” he hints. I am convinced of that, however. Reading the comments on that article is instructive. Many of them are the equivalent of sticking one’s fingers in one’s ears and loudly repeating “I am not listening. nana nana nana.” If people who are literate and supposedly educated are brainwashed enough to not even entertain an argument supported by evidence, what hope is there for the vast majority who have no access to alternative viewpoints to ever recover from the effects of the constant barrage of images promoting Gandhi as the sole savior of India?

If I were an illiterate person, I would be convinced that Gandhi is goodness personified. After all, doesn’t Indian money carry his image? Isn’t he the father of the nation? And should I not vote for Gandhi’s children — Rajiv, Sonia, Rahul, whoever? And should I not vote for the party that Gandhi founded? And should I not believe everything from a person who says he is a Gandhian?

Anyway, I must admit that the Congress party of India has a winning formula and they know it. Gandhi is the biggest brand name in the world — forget Coca Cola and McDonalds. Mera Bharat Mahan!