The capitalistic communism

Now, India is going through an important period in its economic development or more precisely economic change. Capitalism is a form of economic condition, where there is free trade, we allow the market to decide the price and therefore the allocation of resources, which is the most fundamental of the economic activity. What do, the public and private benefit from this form of an economic environment? Now, if the act of doing business is free, then, as a corporate entity, one will be interested in becoming a monopoly, which means, they could enjoy freedom regarding aspects like making profit and therefore pricing.It also includes conglomeration and forming cartels.

If you visit a medical shop now in India and ask for a tooth brush, they will give you a choice of only two brands, once upon a time there were few brands, this lack of choice for the customer is the benefit for the corporates, they have bought all the other small players who were unable to compete with the bigger brands, now, I would like the person reading this as a normal consumer and think of the consequences.

we will take one more product, TEA, once upon a time just few years back, we had a lot of players in tea, both wholesalers and retailers. Today, we have only 2 or 3 players, they have bought everything else, they are maintaining the same brand names, but the suppliers to these brands are the same. So,

So, they are monopolising the market on both the ends. Now, they are the only buyers in the market for the producers and they are the one's as sellers, so, they could reduce the quality and kill a brand in the market, and as well exploit the producers and make huge profits.

Communism is being criticised as not giving enough choice to the customers, but, this way capitalism too is cutting out choices, and the worst thing about this is, they are ending up exploiting on both the ends and making huge profits.

Have you started seeing advertisements for Hospitals?
How do you react to it? Should medical services be run like business?

If I will go to a Hospital, my desire is, that those doctors there will releive me of my pain and I trust them that they will work with the intentions of helping me, and if i start thinking that they will work with the intention of making money, then does it not put a clash of interest? How am I to trust them?

The same is the case with Education, If I go to a school or a college, then I would think that they work with the intention of educating me, and in the process charge a fee, but it should not be the other way round.

I am not an anti capitalist fellow, I am just an Economist with a logical and epistemological outlook.


Now, to top them all, we have these insurance companies, private ones, they ask us to pay a premium, so that you end up with a lot of pension amount to tackle the escalating cost of education, health etc., but if one understands the concept of Inflation in economics properly, one could link that this activity of paying a premium and being able to get a lot of money tomorrow by itself will pull the costs of things up!!!! so, by paying the premium for higher returns one is actually making the services dearer in the future, now who will benefit in the process?

These are not the arguments to be seen as against capitalism, but these are to be seen with a broader perspective as to how economics influeces our lives, and to think of ways to keep it clean and help the mankind.

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Doha US is frustrated

Lalit K Jha Washington, Feb 10 (PTI) The US was "extraordinarily" frustrated with the slow pace of opening up of Indian economy, despite the issue being raised at the highest level, a top Obama Administration has said "As you know, (the US) President (Barack) Obama led in exports and a mission to India as part of his Southeast Asia trip last year and I will be honest, we have been extraordinarily frustrated at the slow pace of opening that market," US Trade Representative Ron Kirk said at a Congressional hearing. Kirk was responding to a question from Congressman Joseph Crowley, Co-Chair of the Congressional Caucus on India and Indian Affairs, who wanted to know the progress made in the increasing Foreign Direct Investment cap in India''s insurance sector. "I have been interested in for a very long time is the investment caps in the Indian insurance industry. Right now American companies can only own up to 26 per cent of the value of an insurance company within India. Even though we''ve been working to increase that number to 49 per cent," Crowley said. "What is the status of that issue and what more can be done to ensure that our service companies can export their services to India on a more level playing field?" he said. Kirk, who has a very good personal relationship with Commerce Minister Anand Sharma, said the United States has a number of engagements with India. "I lead a trade sort of policy forum in which we have raised these issues of them opening up their economy for more. "This would be a case that when we can finish our mid-review we are also looking to perhaps get India to sign a bilateral investment treaty which would remove those caps not only in insurance but liberalise their markets across the board," Kirk said. There''s great opportunity for Americans in the retail, in the agriculture and in the manufacturing sectors, he said, adding "some of this US was trying to address if we can get, frankly, the right balance in the Doha round. "The rest of it we''re going to continue to see if we can''t find the right buttons to push in our bilateral engagements." PTI LKJ

The above is a news item, I am also not sure, whether there is level playing field when it comes to learning from India, Is US seriously interested in learning from India? We are talking about FDI, level playing field, it is actually level paying field, now, think of what Insurance does to an economy.

You keep increasing the cap in insurance, which will surge into inflation, uncontrolled, you will get into the vicious cycle of increasing the increasing the face value of things and not the actual value of things, when will US understand that the real value of a product or a service comes from work, and not on increasing just the book value of things. We can see from history that US has been thriving on an economy which is exploiting the other world economies, with just their marketing gimmicks and insurance valuation, that they have suffered from the same, in the recent depression that US went through, it was because of India's caution, that we did not get that severely affected, if not we would have been in doll drums, people fail to understand that India is growing, but the important statistics to look for is that the percentage of people under the poverty line in India is 42%, which is really huge, still there are people who are in India with an average daily income of less than 33 Rupees.

It is Hightime that US understands this situation and first learn from India as to what is opening up, what is democracy, and more importantly what is real economics!!!