There are many lessons to be learnt from the recent economic and social events in India.
And here are some of them:
- Speeches by Finance Ministers should not be mistaken as reforms. They should be considered as merely band aids and other "feel good" factors created as a "quick fix".
- A "quick fix" is not a reform. It is a movement in nothingness and does not solve a problem. In fact, by not addressing the problem in time, the solution gets more complex and more difficult.
- Finance Minsters should never try to pressurise the Reserve Bank of India into cutting interest rates to "kick start" the economy. Because, when a wrong solution is applied to a real problem you get a whiplash: the RBI was the reluctant bride and had to rightfully flee this arrangement of lower interest rates to defend the Indian rupee by effectively raising interest rates this past week.
- Every PSU company will be slowly poisoned and killed. And their business will be given to a few favoured private sector families.
- You can never eliminate the greedy industrial family groups: they probably know too much about the politicians and the bureaucrats. Our only hope is that god saves us from their greed.
- The free market thinkers want the markets to find their own level. The problem is that there is no free market with any long term, rational thinking. The "free market", globally, is 99% speculative. One should not confuse the theoretical text books with the challenge of building an economy based on what speculators think the price of any commodity (the Rupee, interest rates, oil) is on any given second.
- The economy does not need to be rekindled by letting loose "animal spirits" as suggested by the Prime Minister, who was once a respected economist and once a RBI Governor, but nowadays a man with a puppet wave and a plastic smile. The economy needs to be rekindled by arresting the corrupt and the fixers and allowing smaller businesses to flourish.
- Indian business houses will never bother to export. When doing business in India is as easy as pressing a remote control to pay money to buy a generation of profits, why would the Indian business groups wish to compete in the global market place?
- A callous government breeds a callous society: women will be raped, children will be served poisoned food, and the tribal will be stripped off their land and their pride.
- Or should point 9 be reversed? A callous society begets a callous government. We, as a people, are so soulless and so inhuman that we have the government which is a reflection of who we are.
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