Showing posts with label US government. Show all posts
Showing posts with label US government. Show all posts

Monday, December 03, 2012

In Defence of Capitalism

 Many of you might think I have gone bonkers for defending Capitalism at a time when financial cataclysm is creating mayhem across the world. After all, America symbolised Capitalism and it does appear as if Uncle Sam is being destroyed by Capitalism. You could say that it is de facto 'nationalisation' – the ultimate symbol of socialism – that is saving America from financial destruction and ruin. There is no doubt that without the Federal Reserve and the Treasury Department – both arms of the US government – the American economy would have collapsed by now. The titans of Capitalism – General Motors, Ford, AIG, Citi... – have gone to the American government with a begging bowl, pleading to be saved from the very beasts of Capitalism that they used to flaunt so proudly till recently. For all practical purposes, America has turned decisively socialist. Similar things are happening in Europe, Japan and other so called citadels of Capitalism. With all this as the factual backdrop, how can I claim that Capitalism is still the best option for economic growth, poverty reduction and overall prosperity? How can I make such a seemingly foolhardy statement when even drum beaters of Capitalism like Alan Greenspan are suffering from a spasmodic bout of Mea Culpa?

The answer is simple. In the rush to denounce 'Capitalism' and its wild excesses that have created this crisis, there is fundamental confusion over all important terms like Capitalism, Market, State and Regulation. What we have seen in America over the last two decades or so is not Capitalism in the classical sense; you could call it Crony Capitalism or 'Financialism'. American capitalism was triumphant when General Motors, General Electric, General Mills, to name just a few, were the standard bearers. America manufactured the best products, provided the best services and hence ruled the world economy. But then, it turned into 'financialism' where Wall Street rocket scientists kept creating bubbles and hoodwinking the world.

They were joined in the farce by credit rating agencies. And they deliberately fostered a lie that ''markets'' are always perfect and that the State and Regulation are relics of an old era. The problem was that vast swathes of the world bought this hideous lie. Regulation in America had become a joke over the last two decades, with the State and regulators brazenly siding with the fat cats. If regulation is absent or biased, then Capitalism loses its core essence. Imagine a game of cricket between India and Australia where Andrew Symonds is the Umpire. Something similar happened in America. And we are all paying the price. But please, do not denounce Capitalism and the market as the twin evils. They are far from perfect; but they still deliver the best results and will continue to deliver the best results as long as the players in the game of Capitalism are supervised by an unbiased referee who blows the whistle when there is a foul.


Source : IIPM Editorial, 2012.An Initiative of IIPM, Malay Chaudhuri

For More IIPM Info, Visit below mentioned IIPM articles.

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Tuesday, August 21, 2012

UNITED STATES: SUPERIORITY COMPLEX

All Obama requires to ensure that US is seen as a great ally by the world is to force US officials to control their urge to humiliate people

And it’s not that the cases of such verbal and behavioural transgressions by US officials is not known. In April this year, Afghanistan President Hamid Karzai lashed out at the way he was being treated by American officials and frustratingly announced that he might even join the Taliban if US interference into Afghan affairs didn’t stop – and this when Karzai knows that the reason he is in power is because of the US government’s support.

Not that the US administration has given him any special treatment, they’ve done that with many other nations too. In a weekly column in Forbes magazine in September 2009 titled Humiliating Japan, C. Chang wrote about the various instances when US officials had malevolently belittled Japanese government officials continuously – leading to growing discontent amongst the Japanese population against US, and their elongated presence at Japan’s Okinawa base. This is the very reason that the current Hatoyama government has started giving the US eloquent tit-for-tats, not failing to responde to each and every repartee.

Beside Iraq and Afghanistan, even Japan, Germany and many other countries seem offended with the way American establishment officials behave. Many global conferences are being organized without US involvement now. Latin America hardly pays heed to US remarks and suggestions – and one believes pays them back in the same coin; so does the rambunctious Iran. China’s distaste for American philosophy hardly needs any formal introduction.

With Barack Obama being elected as the first Muslim-black President, there has been a ray of hope for a more approachable and understanding America with a world view. To add to that, Obama is a great orator – perhaps the greatest yet in the line of US Presidents – and one who has the least respect for off-the-cuff verbal assaults (he practices his speeches excruciatingly diligently and never gives a speech without a tele-prompter). In other words, Obama knows the power of speech, the power of communication, and the power of sending the right “friendly” signal.

And he’s realising the follies of his people – in the Karzai case, for example, he sided immediately with the Afghanistan President and blasted his national security team, telling them to treat Karzai with more public respect. In a similar manner, Obama needs to send his team on goodwill visits to countries like North Korea, Afghanistan, Iran, Japan and the likes to promote the power of good faith. If Bill Clinton can get two US journalists freed in North Korea by deciding one day to simply fly in, meet the boss (Kim Jong-il), talk sweetly, and fly out, then why can’t the same be done by Obama’s people? Sadly, as long as dimwit stalwarts like Dick Cheney keep feeling proud of the ‘F’s in their lives, F-theory would stay.


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