Monday, November 3, 2008

Socialism for the Rich

For all my life, I've heard the West plead the case of capitalism. Everybody was riding high on tides and claiming superiority of philosophy and culture. Success was measured in terms of the moola in one's bank accounts. Ruthlessness towards the poor (offering them "generous" loans on exorbitant interest rates, to help them drown in dependency till eternity) was considered a part of the system. If they had the brains and the ability, they'd rise deservedly. Too bad, if not. And if the rich were getting richer, it was because of their potential and taxation couldn't be further from unfairness.

My thoughts: what an ego-centric and selfish world to live in. Unfortunately for us all, we are learning this lesson the hard way now. And how convenient of everybody who is anybody today, to suggest regulation in the economy, when all major institutions and functionaries are in seriously muddy waters. Here's an illustration of that. Andrew Graham, an Oxford Economist suggests:
...financial regulation has to be approached with a completely different mindset
from that for the rest of the economy. Elsewhere, competition can be a
substitute for regulation. In banking, the opposite applies: the greater the
competition, the greater the need for regulation and/or supervision. (Guardian, UK)
Okay!!! So long as socialism is for the rich, it is the best system. But God forbid, more goes to the welfare of the poor, it becomes treacherous!

Copyright (c) 2008 Saadia Malik

Recommended readings:
  1. Socialism for the Rich: Bailing Out the Bankers and Builders
  2. The U.S. Economy Is Socialism for the Rich

2 comments:

Zahid Saeed said...

Have you heard of the convergence hypothesis? there is no such thing as a either a perfect market or perfect competition. Equally there is no merit/reality in absolute regulation.....As is life, economic conditions have a varying velocity of dynamics and policy makers have to continuously flex to reach out for the best deal. The quest of the best deal is therefore a function of multiple variables and their ocillations over time...

Saadia said...

Thank you for your valuable input.

I hadn't heard of it, but I've researched it on your call, and it beckons a mixed economy system. I'm in complete agreement over the fact that there is no such thing as a perfect system, capitalist or socialist. Each has its own merits and the lack of them.

This post was hitting at die-hard capitalist fans who are now beginning to cry foul, now that they need regulation to bail them out. And what is even more ironic is that the very people who drove down the system, are now earning in mind-boggling numbers, for their consultancy services!