The Irrationality of World Trade Arrangements

CONSIDER a very simple picture, of a world in which there are only two countries that are engaged in trade. One of the two has a current account surplus while the other, by definition, has an identical current account deficit. It is reasonable to assume that since the surplus country is obviously more successful as an international competitor, it would be close to full capacity-use in a regime of free trade, while the deficit country that is weaker in its competitiveness would have much larger unutilized capacity.

Capitalism, Employment and History

WHEN industrial capitalism was developing in Britain in the late eighteenth and early nineteenth century, the new machine-made goods had displaced many artisan producers, giving rise to the Luddite movement against the introduction of machines. With increased unemployment, there was an increase in the relative magnitude of poverty, as Eric Hobsbawm had argued in a debate with another historian R.M. Hartwell. But then things improved later on in the course of the nineteenth century.

What Is A Hindu State?

The objective of the Rashtriya Swayamsevak Sangh (RSS) is to establish a Hindu state (“Hindu Rashtra”) in India. But what exactly does a Hindu state mean? The obvious and immediate answer would be that instead of the present Constitutionally-guaranteed equality for all citizens irrespective of religion, there would be in such a state a superior status of the Hindus compared to those belonging to other religions, especially the Muslims who constitute the largest religious minority in the country.

The Chimera of A Reformed Capitalism

PROGRESSIVE Liberals, and Social Democrats in general, have this common belief that capitalism can be “reformed” to become more humane and acceptable to society, and that this can be done by the use of state power which can be acquired through elections in a political democracy; this state of reformed capitalism can be institutionalized for ever, which makes any struggle for socialism unnecessary.

The “Reform” Chorus

Neo-liberal spokesmen have the remarkable quality that whenever an economy gets into a crisis through the pursuit of neo-liberalism, their standard panacea for it is to demand even more neo-liberal “reforms”.

Passing on Higher International Oil Prices

THE West Asian war has pushed world oil prices well beyond $100 per barrel. The Indian government, which had kept domestic prices of oil products unchanged until the elections to several state legislatures had been completed, has now started raising their prices; it has already raised prices in three rounds and is no doubt going to raise them further. And a large number of economists, not all belonging to the Bhartiya Janata Party stable, have seen such “passing on” of higher world oil prices to domestic consumers as the obvious and natural thing to do.

Neo-Liberal Chickens are Coming Home to Roost

THE rupee’s exchange rate has now crossed ninety-six to a dollar; and there is still no sign of its downward slide coming to a halt. There is talk of its crossing a hundred in the coming days; it is the worst performing currency in Asia at this moment and among the worst in the entire world.

Dismantling the MGNREGS

THE Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was perhaps the most consequential legislation enacted in post-independence India.

What is Economic Development?

WHEN Adam Smith’s opus in 1776 took an increase in wealth as the desideratum of a nation’s policy, he was not suggesting that the question of income distribution between different classes did not matter. Likewise David Ricardo was by no means unconcerned with an improvement in the living conditions of the workers.

Marx, New Technology and New Society

Technological development and innovation have been the driving force of human civilisation. With change in technologies, the production process, labour process and measurement of human contribution to social product undergoes change. The current phase of digital technology with AI as the emerging general-purpose technology is also going to radically alter the production process.

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Peoples Democracy

ECONOMIC NOTES