Capitalism is not the answer

I love a good debate. Occasionally, even flame wars will do. If you read my comments elsewhere on the net, you will, more often than not, see me take a contrarian view to the popular opinion, just to liven up the debate.

Something of a prankster ( slashdotters might prefer flamebait ), you might call me. Occasionally, I step beyond the line and get burned but then that is an occupational hazard.

It is my belief that more can be learned by seeing the issue from both sides than passionately sticking to a single viewpoint. Everything is relative, anyways. In my school days, we used to do this fun activity where the same guy had to defend and criticize a topic, switching viewpoints at the sound of a bell. “Just a minute”, I think it was called.

I learned this form of debate growing up in kerala discussing films. Yes, films. Keralites devote ( atleast used to ) an unusual amount of time discussing the question : “Mamooty, Mohanlal : Who is better ?” Since I didn't have a preference either way, I used to oppose the prevaling opinion in the crowd that I was in, for the sake of a debate :-)

I think, it is this middle of the road approach, that made me an Agnostic. I enjoy riling up atheists by asking them to explain the fundamental issue about the origin of the universe ( “How something can never come out of nothing” ). To theists, I normally ask, “If God exists, why can't he do a better job at proving he exists”.

Ofcourse, there is a problem with not having strong principles, best said by the quote,
“If you don't stand for anything, you will fall for everything”.

Still, I prefer it this way.

Why am I writing all this ? I have been part of several debates on the future of america's economy on public forums lately. I have written both extremely positive and highly negative predictions based on the type of the forum I am in ( the opposite view to the popular opinion ).

Paul krugman and others well known columnists have been extremely critical about Bush's tax cuts and the burgeoning US budget, current account and trade deficits. Paul krugman infact goes on to say, in one of his regular columns in NYT, that America possibly can face an argentina style crisis if tax cuts are not rolled back and government spending curbed. Coming as it is from the man considered to be the world's foremost expert on currency crises, it has caused widespread concern.

These columns about “america needs a billion a day in FDI to finance the ever increasing debt of the country” or the “fundamental shift in the economy which has resulted in a jobless recovery” get endlessly discussed in public forums with ridiculous suggestions like “Let us build a fortress around america and ban all imports” thrown around as possible solutions.

It is fun to occassionally step in and point out that for the last few decades, america benefited most from globalisation. Now is payback time.

What americans are most concerned is the apparent lack of care shown by big companies when sending jobs offshore. They forget Capitalism is not driven by ethics but by profits. Capitalism is inherently cannibalistic in nature, a dog eats dog mentality as well chronicled in the history of microsoft.

There is already increasing evidence that although the US GDP is picking up, the benefits will not reach the “common” man but will stay at the top level in the hands of the already rich. Fortune's latest list of the 400 richest americans seems to confirm this when it says that the rich got richer. Not consistent with the situation on the ground. Infact, The word “Oligarchy” has started making the rounds.

Ofcourse, when I point out all these on the “Nothing can touch US” forums, I get very few people to agree with me. More often than not, I get flamed to hell :-)

I like the socialist welfare economies of europe. They have taken the middle road between capitalism and communism and seemed non the worse for it. There is a serious risk of deflation for a few of them but then that might be because of the export dependance on the states.

China is an interesting study. Perhaps, theirs is the hardest task of all. To preserve a communist styled leadership while having a capitalist economy. For now, the western MNCs are interested in tapping china's huge and seemingly endless supply of $100 a month cheap labour. Once popular issues like China's human rights track record have conveniently been relegated to the background in a relentless pursuit to improve their bottomline, a popular buzzword in a recession. If china manages to pull it off inspite of all these, it will be a miracle unmatched in the annals of human history. Only time will tell.

Finally, there is India. If there is any award for the country with the maximum potential, we will walk away with it hands down. Sadly, the potential rarely gets realised. Unfortunately, the very diversity that we are so proud of is proving to be our bane. A collective decision is more or less impossible in our scheme of things.

Like our cricket team's reliance on sachin, will we will always end up depending on individual brilliance ( Naidu ? ) to save us at the end of the day.

Luckily, we seem to be finding a new hero ( anju george ? ) regularly these days. Maybe, it is a tide of better things to come.

All these forums did help in increasing my limited knowledge of how the global economy works. Till I lose interest, my occassional ramblings on politics/economics will continue. Anyone wants to take a contrarian view ?