The great war between Socialism and Capitalism

The debate between socialism and capitalism has intensified these days as we brace up to a world wide economic crisis . The nay sayers and the leftists all across the world have asked the governments to expand their size and role in direct economy and curtail the animal instincts of capitalism . I would like to start my arguments by mentioning to them that socialism is relatively a new historical phenomenon and has no traces of existence before Vladmir lenin overturned Russia into a socialist state . The centerpiece of Karl Marx's argument is that inequality is the prime driver of poverty and the pursuit of equality in all forms whether it is economical , political and social is desired and should be enforced on the society forcefully . Equality was the justification for the unparalleled crimes committed by the communists against humanity all across the world . I do not intend to reel the numbers today as i have done on numerous other occassions but socialism and communism has got a chance to prove themselves in our world and they failed miserably . Russia was the country that sustained communism for long but eventually socialism could not sustain even in Russia and the pursuit of equality has shattered societies irreparably in Russia .

But the big question today is Is inequality the prime reason for the poverty in our country or reason at all for any poverty in this country . Is capitalism driving people into worser poverty or alleviating them from poverty ? Are Indian poor better off in the pre-1990's socialistic Indian than they are now ? What role does politics and governance play in alleviating poverty ? Who is the real culprit of our human development problems governance or capitalism ?

The favourite socialist slogan is 'Inequality is the prime driver of poverty in any society' . Jawaharlal Nehru bought this argument and he ensured that India does not have too many rich people . He did this by preventing enterpreneurs from entering into most of the sectors of Indian economy , he monopalised most of the sectors by government run PSU's and that was communism minus autocracy . The inequality in Nehruvian indian was very less . There are very few rich people only enough rich that the government and Nehru could be comfortable with . He hated money and he prevented a system that would allow people to make money for themselves . That socialistic equality pursuing system lasted till 1991 till P.V Narsimha Rao took over . P.V has realized that the pursuit of equality has led the country to the edge of the cliff . Who should take responsibility for the fact that we were on the verge of bankruptcy in 1991 . Which leaders and which political and economic systems should be held responsible for our situation in 1991 ? can we ever forget the humiliation that we had to mortage our gold for just 500 crore rupees ? Now it's time for the capitalists to answer why socialism in India failed because we promise a better system a system that's based on freedom , liberty and pursuit of happiness .

Selfishness is the natural law under which a human being functions . There are people who have an intellectual need , there are some who would like to be rich and there are some who would want to be famous but it is this selfishness which drives the man to think and to redefine himself to achieve his life's goal . A life which is not free to be excited by some desire and pursue that desire is not a life at all . A life that cannot purse intellectually , emotionally and philosophically what it desires is not worth living .Socialism takes the freedom away takes the life away from the human being . It asks for a mechanical pursuit of life without any desire and goal for oneself and if at all a man has a goal it should be for the larger interest of society .This idea of living for the society has destroyed men , took the life away from him .

Why did the government run PSU's fail despite being a monopoly ? Why did they become such a drag on economy despite being the only companies to operate in that space ? That is because no body's head is in the line of fire . Neither the politicians who appoint the managers to these PSU's nor the managers themselves lose anything if those PSU's fail , their head is not in the line of fire . In one simple line those companies are not theirs . This 'head in the line of fire' makes all the difference , this is why capitalism succeeds and socialism fails . Praful patel lead AirIndia for 5 years .He lead AirIndia into that bottom less pitt and now when he failed Air India he is moved to other ministry . In the last 10 years the government of India has pumped in 16000 crores into that bottomless pitt called AirIndia . Now it is going to pour more money into AirIndia . Nobody in our socialist government for one moment has the guts to ask why is the government running an airline company ? What is the necessity for the government to pour valuable tax payers money into that drain ? MTNL is next in line for government assistance . It is incomprehensible why government wants to run these companies at a huge loss to exchequer . If poverty alleviation is all we are concerned about Infrastructure should be our top priority . If our government stops saving those sick units and instead push that money into infrastructure we would be a far better country .

Is the government more efficient or private corporations more efficient with the capital ? If we put the same amount of capital into the hands of government and a private enterpreneur it's historically proven that the enterpreneur extracts more efficiency from the capital , that capital at the disposal of enterpreneur has created sustainable economic systems and consequently jobs . The same capital in the hands of governement has depleted . The government goes for job creation without looking at the sustainability and viability and the systems and PSU's government create later on become a drag on the government . West bengal is 2nd largest industrialised state in 1967 . After 3 decades of socialism today it stands somewhere in the last 5 . Enterpreneurs have been portrayed as blood thirsty people and were the condemned class . If an enterpreneur wants to create a profit making self-sustaining company he was considered selfish money-minded and ethical . And all those people who would just talk and do nothing are the ethical unselfish good intentioned people .Today west bengal has an unsustainable debt of 2 lakh crores .Who should be blamed for the deindustrialization of west bengal ?

Even in empirical terms the capital put at the disposal of enterpreneurs created more jobs and contributed to the state in the form of taxes but the capital at the disposal of state has become a drag on the state consuming huge amounts of tax payers money which could be utilized for addressing the real issues . The enterpreneurs create wealth not just for themselves but for the people all around them , they create jobs and sustainable economic structures .Today we have the muscle to deal with our problems . Our country did not have the resources to deal with our problems before 1990 . Had we continued with that socialism we might have become a bankrupt and failed country by now . So now the question is why are we a poor country despite having 20 years of free enterprise . The first and the foremost reason for that question is governance . The government has got it's priorities wrong , instead of concentrating on Infrastructure , Healthcare and education it has used the new found revenues to splurge no more useless social spending in the form of freebies . The huge economic problems of our country the unprecedented inflation is a direct consequence of the poor management of public finances by the government and unprecedented scale of corruption and plunder by the congress politicians . We are surviving as a country despite poor governance and high corruption only because we were gifted free enterprise by P.V Narisimha Rao . Without those reforms i dont know what might have happened to this country . P.V Narisimha rao is India's Abraham Lincoln . Hail the leader , Jai Hind !!!!!