I write this piece with an outset declaration that I vehemently oppose the ideas, theories and policies that have been borne out of Keynesian Economic Model.
As everyone knows, he custom-designed US Economic Model, and is applied majorly in world economics. But sad yet Simple fact to state would be that, John Maynard Keynes entirely runs on the assumption that his Socialist ideas would be able to tackle the risks of temporary Withdrawal of investments. He assumes that if Govt is given the power, it will deal with crisis where investments are withdrawn by private players, and once the Supply/demand chain is back and running smooth, Govt. will withdraw its measures like Bail-outs, pumping currency into the economy etc. But he fails to realise, with such power, no Govt. would keep its control on regulation of money as a temporary measure, as Govt. is made of human beings, and they tend to get corrupt with such kind of power!
And economics in India is hardcore driven by such ideas. You can not expect Govt to create a Free Market scenario while it states it is a Welfare State, and on the longer run degenerates like a Communist/Klpetocratic State. Economics professor at my college said without Govt., innocents will be exploited, and noone will take care of the needy as private corporations only look at profit. What I couldn't understand is that, if profit is not the aim of an investment, then where lies the possibility of growth, development and progress?
I mean, only if you have a surplus capital, you would consider expanding, and only through expanding your technology, market, productivity can you realise any sort of progress/development of society. But if you don't even invest your capital well, and spend your profits, (if at all, you generate any) in spreading it as subsidies and welfare funds, then how can you even expect to grow?
Moreover, I do not understand the wisdom in bringing an exaggerated sense of morality in commerce.
If you feel incapable of competing, you can always join ranks with the winning lot, or far better try harder and come up with a better show. But why should false unbacked stacks of money be pumped for the sack of policies by a Govt. which does nothing efficiently and, just say, 'we are welfare state'.
You dilute your own economy's worth, you don't cash in on your profits and expand, you do not save any money, you deplete your capital, and on top of all that, take loans at 300% interest from IMF and make your country a virtual slave. What wisdom exists in being socialist/communist with such extravagantly moral, yet impractical ideas, which sound good on paper, but only result in a negative spiral in reality?
And next point of contention was that Free Market only works in the absence of information assymetry wherein private players can not take advantage of innocent people in informal sectors. What I fail to comprehend here is that, is information assymetry non-existent in Govt run show. Our own primary and secondary sectors have a huge populace which does not know what its rights are, and how exercise them to the fullest for maximum benefit.
There are many a questions that this Government supporting Keynes' brand economics offers, and only a minimal of zero solutions. To layman like me, it comes across as a booby-trap, where A will snatch my wealth away from me saying that B needs it, while even B never gets the needful, that he 'supposedly' required. And A will wrongfully enjoy the wealth that was hard earned by me. And there might be a C who will pretend to be like B, and claim rights on MY money, saying he 'NEEDS' it, and A will give him a little chunk and keep a little for himself, while neither A nor C honestly work for it.
All I can see here, courtesy Keynes, is an unjust and unfair system, which need be weeded out from the facet of humanity!
