Friday, March 18, 2016

Capitalism or Communism

Capitalism or Communism

Japan is a country of homogeneous society, where the PM or the Peon can eat same meal in same type of plate. The tax structure is such that rich pay higher rate of income tax. The nationalism spirit is such that the profit making company may pay 96% of its profit to the State exchequer. In hospitals, with the same quality of services, rich are charged more than the common men.

India is country of heterogeneous society where people build wealth through the networking of caste groups. I have a Jain friend. Whenever I ask him an address or contact details to buy some goods or services, he will invariably give me the details of Jain traders only. India still lives in networking of caste and sub caste groups.

To improve quality of life, one needs to improve spending capacity of each family. For that, each family has to earn income. As all persons can't become manufacturers and traders, majority of them have to earn their livelihood from jobs, services and informal sectors. Therefore, the Country need entrepreneurs who imagine, take risks, generare wealth and employment. Without wealth, nothing can be distributed? Progress of the Nation is linked with its resources, infrastructure and growth rate. Post 90s, the investors and entrepreneurs have shown their strength in the development of the Nation.

Once wealth is generated the distribution fight starts. The haves want more share because it was earn through their entrepreneurship. The have not ask more because they are poor and are in need of basic requirement for better quality of life. The party in power has to balance between the both. One group is the engine of the growth as well as funder of the party expenditures. Another group is numbers, if converted into a vote bank, has capacity to hold the party in power.

As the mass is not fully employable, and the resources are limited to generate jobs at the rate of the work force entering into the market; India has to go for the model mix of Capitalist and Communist agenda together.

Gandhi once told in a public meeting that if he distributes Rs.1 crore collected from the people, amongst 1 crore people, each one will get Rs.1/head, that won't serve any big purpose. But if the same money (Rs. 1 crore) he gives to Shri Kasturbhai Lalbhai, he will start a textiles mill that will generate employment and wealth for the nation.

If banks take deposits and distribute amongst the common people, their contribution to the society won't reach beyond a "bachat mandal". They have to follow Gandhi for wealth generation, though some Mallyas may be born out of the system.

In communists countries, the powers groups turn into crony capitalists.

Till the size of human (I am big) is not finalize, the expression of big will be seen by building wealth, spending wealth or hoarding wealth. All will keep playing with the wife of Lord Vishnu, the Lakshmi, whose vehicle is Owl!

18 March 2016


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