Democracy v/s Capitalism
"Rich funds elections and votes of poor won"
What people need? Political Equality or Economic freedom?
Use market to conquer poverty?
Or Capital freedom balanced with mass welfare?
Market deals with commodities in Capitalism but in Democracy market deals with its citizens/poors, the consumers of goods. They are labour supply as well as their purchase power consume goods produced by markets.
More educated you are become richer. More urban you are more you vote for capitalism. And as the number of middle class urban population increasing, democracy will be driven by these elite class if they return to booth.
India's growth rate in last decade was high barring last 2 FYs but economic inequality also gone up. India has 5th largest $ billionaires, 3rd largest middle class and single largest concentration of poor.
How to restore growth momentum with inclusionary policies?
India moved forward from planned economy generated growth of Nehru Model to more left shift during Mrs. Gandhi to free economy model of MMS barring 3 subjects. It has no foreign portfolio till 1992, now $30B annually FDI.
Privatisation halted.
Agriculture subsidies, hard nuts to crack (selection between long run sector development and short term votes)
Labour laws to amend for easy exit.
Welfare State need market for growth acceleration because it need money/resources that can come only through market driven economy.
The demographic dividend youths demand jobs. And jobs can be generated by entrepreneurs. People will evaluate the action of Government at the interval of 5 years through democracy but for fighting poverty through growth, capitalism to be promoted balancing it with mass welfare.
Punamchand
17/11/14
Mussoorie Ph-5
17/11/14
Mussoorie Ph-5
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