Capital Vs Labor

In my quest to gather wisdom I chanced upon the book “Capital in the Twenty-First Century" by Thomas Piketty. I just started reading book. I want to share an impressive excerpt.

What is the ‘right’ split between capital and labor? Can we be sure that an economy based on the ‘free market’ and private property always and everywhere leads to an optimal division, as if by magic? In an ideal society, how would one arrange the division between capital and labor? How should one think about the Problem?

Makes lot of sense, even out of context.

An economics lesson for AAPtards

Right after BJP released their manifesto, scared followers of AAP made video using paint and some screen grabber. They claim they have a development plan(which I don’t believe) and they went on to explain how it works. Whoever made that video clearly doesn’t understand basics of supply and demand(microeconomics).

The video goes like this:

She(narrator) explains there are two kinds of developments. One is industrial developments another is human development. Human development alone is not enough because without industrial development there’ll be no jobs. Industrialization alone is not enough because it adversely affects income distribution. So, AAP’s plan is first human development and then industrial development.

Here’s the flaw in such a beautiful half baked 2 minutes plan.

  1. Where are you going to get the money for this so called human development.
  2. Once the whole country is educated you’re going to erect all factories and infrastructure in a single day and provide employment for all them
  3. For that you’re going to need investment which you’re going to get overnight, and build everything next day. Sounds great!

Any healthy economy is driven by demand. You create demand for skilled youth which gives you output. Govt collects tax on the output which will be spent on education and health which in turn accelerates growth rate. If you start spending on education and health without increasing output simultaneously, you’ll go bankrupt very soon. First increase demand, not supply. And who’s going to tackle inflation. Who’ll bring agricultural reforms. So, stop trying to fool people with such half baked ideas.

Why I won’t vote for AAP this time

I have been part of many AAP vs XYZ party debates, most of the time explaining why I don’t want to vote for AAP and choosing less desirable option.

I don’t like subsidies, especially those targeting the poor. It will only make them lazy. AAP implemented exactly those populist subsidies. They may not be too costly for the state but what scares me is what AAP will do if they stay longer time in power and have more money at their disposal. From my point of view, scams can be exposed with RTI, investigations or whistle-blowers but subsidies will bring the economy to its knees. Subsidies are more dangerous and unethical(not all, only the ones to appease poor).

Any government came to power promising poor appeasing subsidies, if they deliver with precision eventually they’ll go bankrupt and the party will be out of power. But AAP delivered the subsidies, didn’t take the burden, used public money to gain popularity and simply escaped the responsibility. They used public money to gain popularity. This is manipulation and deception, the worst kind and it’s unethical. This kind of track record puts you in the same league as other parties. So, you can’t claim that you’re holier than other parties.

What I cannot fathom is why did he quit citing Jan Lokpal Bill as a reason. He could have stayed in power, improved the lives of Delhi population. Instead he chose to go after big netas and tried to expose them with Jan Lokpal and gain more popularity. He could have improved education, infrastructure and lot many other things. Why did he quit?

How can you invite other party leaders for debate when you never ruled any state for enough time to prove your strength, even worse you ducked your chance to deliver. Besides you displayed enough immaturity and inexperience in that short period of time. It’s just unfair to call them for debate.

Someone said a country will get the government they deserve. To deserve a better govt the whole nation has to be better informed. It can happen only with mass scale education reforms. I heard very little about their efforts to improve education system. All they say is, all other parties are corrupt so give me vote. Why would I give you my vote if you pamper poor?

I admire your audacity and ideology. I was once a strong supporter of AAP. But to regain my trust you’ll have to pick up a state and work on it to prove that you can deliver what’s best for country. But if you’re planning to take shortcuts with cheap theatrics, I’ll try my best to spread my thoughts against you.

Disclaimer: I’m no expert in politics or economics. These are just my opinions framed with my mediocre knowledge.

Caste

I’ve been meaning to express my lingering thoughts on caste system, caste based reservations and abolition of the very system.

My idea is, how is it helping the people of India in mitigating the caste based inequalities by reminding them that they belong to different castes. You give them reservations and you remind them every day, every minute that people of different caste have different levels of opportunities and you ask them to remove the inequality, sounds a bit illogical to me. What may help it is removing the caste column from every piece of paper in schools, colleges, job applications and all kinds of databases. This will remind us less about caste than it does today. And then you think about implementing alternative criteria for reservation or an innovative method all together.

This may sound radical but people will get used to it like every other radical change that our leaders have brought in.

This is yet another shout which will go unheard, but I’ll say what I have to say.

Institute of Indian Technology

Its 1AM in the morning and I have an exam tomorrow. I am extremely frustrated after writing 9 exams consecutively and two of them today(without a gap). I am supposed to mug up 40 theorems by morning. The situation is, I am due 14 exams in a row, sometimes two exams on a day. You may wonder what is so strange about exams. Did you notice the number? 14!!. Its bit of my fault too.

Anyway, the point is I am not against exams. Evaluations should be there, but they should not be as stinky as they are. Professors dump whole study material on us in class day by day without bothering whether students understood or not. Then, they ask us to dump it back. I always rant about how bad the teaching and evaluation methods are. But people say I am crazy and move on.

Let me tell you a funny story a junior told me in one of our usual chats. One of his class mate is very sincere and notes down everything in the class. Couple of his friends copied the notes a night before the exams and scored lot more than him. What is the point of the evaluation if it can’t distinguish the hard workers and the lazy ones. You may argue that the student might be dumb. Well, according IIT-JEE he is as intelligent as his classmates.

Keeping aside the evaluation methods, do they teach anything worth learning? Do they teach anything at all? My answer is ‘No’. I bet for 90% of the professors who write those giant mathematical equations and lengthy theorems on the board, do they make sense even to them. In my department professors spend half of their time fighting with each other but they will not help a student. Teachers concentrate on whether a student is standing or not while answering a question rather the answer is correct or not.

Almost everyone in IITs crave for good GPA. I saw people being about their low GPA, but I never heard anyone crying for not able to learn anything. In my 4 years I learned nothing in class. All they want is a job at the end of the 4 years. People say IITs are among the best in the world. See if you can find at least one in this list.

I know I am going to flunk. Right now all I am thinking is how to spend those two hours doing nothing.