No Excuse

Tweet from Oct 12, 2021

In a tweet on Oct 12th, Prime Minister Modi boasted, “I feel proud that even at the peak of COVID-19, 80 crore Indians got access to free food grains.”

It takes an extraordinary amount of self-deluded arrogance for a prime minister to claim credit for something that any person of average morality and sensibility would be ashamed to admit. It is shameful that India is so desperately poor that 800 million (out of a total population of around 1,400 million) would starve under adverse conditions without government food assistance.

“If you feel driven to feed the poor, get your checkbook out and keep your tyrannical mouth shut about it.” – Lewis Goldberg

If it was Modi’s personal fortune that was the source of the largesse, he could have been justifiably proud for having helped the poor in distress. But it was not his money; he merely extracted the wealth from about 600 million at the point of a gun and transferred it to the 800 million. In doing so, he forcefully demonstrated that Indians can be conceptually partitioned between two mutually exclusive and exhaustive groups: those 800 million who are reduced to beggary, and the 600 million who are reduced to slavery. Continue reading “No Excuse”

Inflation

Inflation is what the government does. By printing fiat money, the government imposes a vicious tax on people. Taxation is theft and inflation is the most damaging of theft. Yesterday I paid twice as much for gas as I did just a year and a half ago. In April 2020, I paid $1.69 a gallon (see the image above and note the date stamp; also note it says 1.69 for regular, and 1.89 for premium) and yesterday I paid $3.40 a gallon for regular at the same gas station.

May Biden rot in hell. Let’s go, Brandon.

Smart People, Stupid Ideas

Even stupid people can do smart things. Contrarywise, even smart people can do stupid things. Here’s a post hauled from the archives where I make that point. When Smart People Have Stupid Ideas.

What is Wealth?

Cryptocurrency is not wealth

“The serious fact is that the bulk of the really important things that economics has to teach are things that people would see for themselves if they were willing to see. And it is hard to believe in the utility of trying to teach what men refuse to learn or even seriously listen to.” — Frank H. Knight

Conflating the words money and wealth is an easy mistake to make because in most everyday parlance we use the two interchangeably — if you are wealthy, you have a lot of money, and if you have a lot of money, you are wealthy — without loss of comprehension.

But money is a measure of wealth, not wealth itself, just like kilogram is a measure of mass but is not itself mass. They are not the same. They have to be distinguished if we are to reason cogently about the nature and causes of wealth of people (and progress in our “inquiry into the nature and causes of the wealth of nations.”)

I have written a fair bit about wealth and money over the years. Time for a TL;DR version. Continue reading “What is Wealth?”

Inequality – Part 2

Prabhudesai, in a comment to the recent post on inequality, wrote that envy motivates the concern for inequality; otherwise, to demonstrate their commitment to equality, people would give away that portion of their wealth that exceeds the average wealth of the society (or the world at large, if they are really sincere.) I agree. 

People who are exercised about what they consider to be an “unfair distribution” of wealth insist that the wealth of the super-rich should be confiscated and distributed “fairly” to all. Bezos, Musk and other multi-billionaires come in for special censure. Why, the cry goes out, should they have billions when there are starving millions? They have more than they could possibly consume while there are people who are starving. It’s immoral and sinful. The government must do something about that.

I disagree for various reasons. First, I present a consequentialist argument why the wealth of the super-rich should not be redistributed by government edict. As I am not a utilitarian, I reject this argument for a much stronger claim. Continue reading “Inequality – Part 2”

Inequality

Figure 19.12

In a comment to the post CORE – The Economy, Raghuram quoted from the book:

In November 2016, we asked students beginning economics at Humboldt University in Berlin, ‘What is the most pressing issue that economists today should address?’ Their replies are shown in the word cloud in Figure 19.12, in which the size of the word or phrase indicates the frequency with which that term was mentioned. Students in other universities around the world gave similar answers.

Inequality is, by far, the main problem that students think economics should address.

Click on the image above in case you wish to read the chapter on “Inequality” but it is not necessary for this post. Continue reading “Inequality”

Common Sense

Born in England in 1737, Thomas Paine emigrated to the British American colonies in 1774. He anonymously published a pamphlet titled Common Sense in 1776, which inspired the American patriots to declare independence from Great Britain in the same year.

The wiki says, “Virtually every rebel read (or listened to a reading of) his 47-page pamphlet Common Sense, proportionally the all-time best-selling American title, which catalysed the rebellious demand for independence from Great Britain.”

Common Sense opens with the following paragraph. Continue reading “Common Sense”

How the World Works — Part Duh

After the success of the How the World Works – Part Uh, I have been pressured to offer Part Duh of the same. So if you, dear reader, were so unlucky as to have missed the first part, despair not — Part Duh is finally here. Even if you did catch parts of the first offering, you are sure to get a lot more in this new series. But there’s a catch!

This time around you have to pay. This part, unlike the first part, is not free. Why not? you may ask. Because there’s no such thing as a free lunch. Why not? Ah, you’d learn why not if you attend this part of “How the World Works.”

Seriously, you’ll get it. And when you get it, you’d be delighted. And if you’re not delighted, it’d be entirely your fault. Guaranteed or your money back. Promise. So here are the details.

Continue reading “How the World Works — Part Duh”

Dhanteras

Dhanteras Greetings. For those who are not familiar with this northern Indian festival, here’s a bit from a 2019 post on Dhanteras.

“The first day of Diwali is called Dhanteras — the thirteenth lunar day of the month of Kartik. On this day, Lord Dhanwantari came out of the ocean with amrut — the nectar of immortality — for the Devas. This day marks the beginning of Diwali celebrations.”

Share lots of sweets with family and friends, and have a wonderful Diwali with fireworks and lights.

Here’s what I am listening to — Roopa Panesar on the sitar, accompanied by Upneet Singh on tabla, and Pirashanna Thevarajah on the mridamgan. Listen. Continue reading “Dhanteras”

Decline

Thanks to the wonders of socialism and communism, China was either at par with or poorer than India for most of the 20th century CE. However, in 1978 China’s luck changed when Deng Xiaoping took over. Deng was a pragmatist, had the capacity to learn and do what needed to be done — make China great again.

In May 2014, when Modi came to power, I was absolutely delighted. India’s moment has come. Modi will do what Deng Xiaoping did for China.

But in about two months by July 2014, I realized that Modi was not Deng. In the years that followed, Modi showed his true colors: a power-crazed autocrat who was a cross between Nehru and Mao. He combined Nehru’s narcissistic self-obsession and general lack of vision, with Mao’s ruthless authoritarianism and disdain for people.

Modi was the amalgam of the worst that India and China had produced — Nehru and Mao.

It did not matter how duped and betrayed I felt after being an ardent supporter of his; what mattered was that India had missed a golden opportunity to lift hundreds of millions of people who are trapped in extreme poverty.

Back in May of this year, I wrote a bunch of tweets which was provoked by comparing the number of airline passenger-trips in India, China and US. (Click on image above to read the tweets.) I am reproducing them here, for the record. Continue reading “Decline”