Unintended consequences of Capitalism

Churchill once said that “Democracy is the worst form of government, except for all those other forms that have been tried from time to time” (from a House of Commons speech on Nov. 11, 1947). I would like to draw a parallel between government and economic systems to say that Capitalism is the worst form of economic system, except for those other forms (like Communism in Soviet Russia) that have been tried from time to time.

Some believe that capitalism makes rich more rich and poor more poor thus widening the gap between rich and the poor. I do not think that this phenomenon is by design. This unintended consequence of capitalism is because of some external factors like socio cultural settings, community or individual values like philanthropy, honesty and the State or political set up. Ideas and systems are not good or bad inherently and it is the implementation or realization of these ideas that make them good or bad.

Thus, there is no room for complacency by considering some system as perfect or being the ‘end of life’. We have to understand the deficiencies of the system and provide alternate solutions to overcome these shortcomings or ill effects. A common man in the society has certain confidence about the system but articles like “Rs 10,000 crore black money begotten daily in India” makes the common man to review this confidence. The government should take drastic steps to curb the flow of black money in the economy. Shameless are the economists who provide a functional perspective of black money.

The article on black money by the former CBI director also raises another important question of government-bureaucracy nexus. Most of the officials spell out the truth only after they retire and one can relate my blog on ‘Ills of being ‘morally’ right‘ here. So, we have to be contented that people are at least speaking after they retire.  We should also provide bureacrats enough power to confront their political masters against immoral issues. Further, a practice has to be developed in which the advice tendered by the bureacrats will be recorded and reasons for not following that advice provided by the minister concerned.

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About guptasudhir

Let us revolutionize education in India !
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