Is OUR ECONOMIC RATIONALE scientific, as it is made out to be !!????

Is OUR ECONOMIC  RATIONALE  scientific, as it is made out to be !!???? And whose lament is made heard through this article !?

Why is our national economy suffering, not showing positive signs of recovery  & growth, as per the ‘experts’ who are in a position to see the overall picture ? Is the sickness exclusive to only Indian economy ? 

The following open-ed article reminds us that India had achieved annual growth rates above 9 per cent (in GDP terms)  in a few years during its two terms of the UPA . Then why that performance, that magic cannot be re-enacted again and again. We are supposed to be living in a scientific , logical, rational world where every branch of modern knowledge is a science ; viz economic science, political science, Management science, Scientology, communication science and then other branches of modern knowledge like medicine , engineering & technology that we take for granted as scientific. And high priests of science claim that all scientific experiments and its practical applications  are repeatable, any time, any place,  with practically the same consistent results. Now why can’t all these scientific knowledge at the command of humanity  be applied in the case of our national/international  economy that we may achieve consistent positive results. What is holding us back ? Or is there a deep flaw in the modern knowledge system that we have created in vainglory, and then believing in it ourselves as well as convincing others of its invaluable and innumerable boons.

One of the major reasons cited here for the retarded growth is slack performance in mining and manufacturing. The article gives the strongest  hint that people in the proximate area are unsettled by these activities. It is a fact that out of 120 crore Indians, not more than 10% will have permananent security of livelihood and peaceful existence, based on the current model of economic reasoning. This article is not meant for people like them. In any case they will not even get to read this. Their main concern will be survival on a daily, monthly , yearly basis. The lament that we perceive here in this article is that of the 10% privileged Indians, whose growth has been stunted, getting stuck at less than 5%.

http://www.thehindu.com/todays-paper/tp-opinion/elusive-recovery/article5758988.ece

The full op-ed article is copied here-

Elusive recovery, The Hindu, 07/03/2014

Growth data released by the Central Statistics Office last week point to a continuing economic slowdown and offer very little comfort to a government that is hoping to proclaim a recovery ahead of the elections. With no further data releases scheduled until May-end, the government will have to reckon with the fact that based on published figures it would be extremely difficult for the economy to clock a rate of even 5 per cent for the whole year. The economy grew by 4.7 per cent in the quarter ending December, which was slightly better than the average of 4.6 per cent clocked during the first half of the year (April-September 2013). For the seventh successive quarter, GDP growth has been below 5 per cent. Finance Minister P. Chidambaram in his recent budget speech expected economic growth during the second half of the year to be at least 5.2 per cent. That now seems a stupendous task given the slackness in the third quarter. The CSO’s advance estimates for 2013-14 released earlier of 4.9 per cent growth certainly does not look to be an underestimate as some government officials have been claiming. It ought to be quite disconcerting that having witnessed annual growth rates above 9 per cent in a few years during its two terms the UPA will be facing elections with the economy stuck in a sub-5 per cent growth trajectory.

A closer look at the third quarter data reveal some well-entrenched weaknesses in specific sectors. The investment scenario remains weak notwithstanding recent efforts by the government to fast-track certain large projects. There is an expected measure of uncertainty in decision-making ahead of the elections. Both mining and manufacturing declined in the three-month period. They have been weak throughout this year. Policy logjam and environmental and judicial activism have impacted adversely on mining output and this has had major negative consequences for the current account of the balance of payments. The outlook for the near future is not bright. Eight core industries which have more than one-third weight in the Index of Industrial Production, an important lead indicator, grew by just 1.6 per cent in January compared with 2.1 per cent in December. Exports are growing but at a slower pace during the three months up to January. Agriculture has done reasonably well while services, driven mainly by one sub-sector, personal community and social services — which is a proxy for government spending — picked up in the October-December quarter. GDP growth along with retail inflation and inflation expectations will figure prominently in the general election. Barring an unexpected turnaround, the government would seem to be on a weak wicket.

TEN THOUSAND COMMANDMENTS FOR WHITE AMERICANS - KARMA CATCHING UP !!!!

Today  is Gandhi-jayanthi.  And Gandhiji reminds  one of the continuity and unbroken flow of Indian Civilization

What is the foundation of our Civilization ?  I may say it with a fair degree of accuracy or should I consider  having hit the ‘bulls-eye’ (?) , when I conclude that, it is our knowledge of Karma /Work/Action /Movement that has  acted us the foundation of our civilization. I wish to distinguish here knowledge per se (ie Brahmam), and the knowledge required for a civilization(samskaram) to come into being.  That our civilization is entirely conceived on the knowledge of Karma is the part I wish to emphasize. Our seers had managed to obtain the ‘blue-print of this universe’ through austerities and penance  in ancient times (pre-historic)and later it was Vyasa who compiled all those knowledge and classified them, because he realized that human intellect was waning. It began showing its incapability of  holding vast swathes of ‘shastric knowledge’ in the form of poetry in  its memory. Thus we consider that Vyasa divided the Vedas into four sections –Rig, Yajur , Sama & Atharva.  But more important than this division into four is its classification(into two) as Karma-kanda & Jnana-Kana. The former relating to action/work, ie actions that are desirable aiming at a singular ultimate objective,  and the later relating to knowledge of that ultimate objective/station. The foundations or  the fundamentals of our civilization can be gleaned from that single text The Gita. (In the case of any civilization, the word foundation is used figuratively. But in the case of a building we consider solid materials like stone, concrete etc as its foundation. But here also,  we may say that the foundation is not physical or material. In these modern times none will dismiss this fact as outlandish,  but as experienced by our seers and also as demonstrated by the practical application of that famous formula E=mc squared, the final fundamental building ‘blocks’  of any solid, is anything other than solid. )

After a gap of about 2500 years,ie. after Adi Shankaracharya, who  had streamlined the scattered knowledge , it was Gandhiji who completely understood about the ramifications of the fundamental(s) of our civilization, in the practical life of our nation and the world.  Of course he did not write any ‘Bhashyams’ (exegesis)  to the Gita, like Shankara, but he took great efforts (not pains) to learn the Gita, and had said that the Gita is not only his mother , but the UNIVERSAL MOTHER.  Quote “ The Gita is the universal Mother. She turns away nobody. Her door is wide open to any one who knocks.” (Harijan, 24/8/1934, p.222)

The Gita is the essence of Upanishads (janana kanda of the Vedas), Brahmavidya (derived from jnana-kanda)  and Yoga-shastra.The first six chapters deal with the individual that has come into being(born) and the karma/actions he is forced to undergo  before his mental preparation (often leading to uncertainity in actions, sadness and depression(despondency) )and how to modify his actions through knowledge, discipline and other means. The Gita clearly states that this cosmos is the result of Karma/action, and ultimate happiness ie bliss experienced in the liberated stage,  is  obtained by transcending all actions. This is the actionless state (ie moksha).  But a individual  cannot suddenly switch over to the actionless state due to some reasons. He will have to perform some actions to wear off the tendency towards action. And while doing action (like a conscious machine) to rub-off action, he should not  yearn for the fruits thereof.

More than anyone-else during his time, Gandhiji had  greater understanding of the wisdom in the Gita. And that had shaped his attitude towards politics, economics and management. Consider his attitude towards machines. He wished  destruction of power driven machinery and mills. (Young India 1921) Not only that , consider his take on credit/debt. This should be of particular interest to all , after hearing that US Govt has ‘shut-down’, ‘downed its shutters’ like a commercial institution.  “ The credit  which is becoming the money power of the world has little moral basis and is not a synonym for Trust or Faith, which are purely moral qualities……..that the greater  the rascal  the greater  the credit he enjoys with banks.” (US enjoying so much credit  with China, Japan and Saudi). “The credit system has encircled this beautiful  globe of ours like a serpent’s coil, and if we do not mind, it bids fair to crush us out of breath………… The deadly coil  has made possible the devastating spectacle in Europe, which we are helplessly looking on.” (Speeches & Writings of Mahatma Gandhi, (4^th edn.) pp. 356-63 )Of course , credit as well as machinery, are not specifically dealt with in the Gita, but it surely falls under Karma, because Karma is done either through mind, sensory organs (an eg through tongue-speech) and body. (or its combination)  The Gita has expounded the theory of karma so comprehensively, that nothing in the cosmos, can escape its fold. The idea or imagination (sankalpa) of credit and machinery  itself  are karmas.

Gandhiji had studied basic science and maths, and had not taken advance lessons in heat and thermodynamics. But he expressed views  like that of a person knowing entropy, which is a topic in thermodynamics. About Modern Civilization which has made life very complicated his thoughts were “ After 18 years of study devoted to the consideration  of the question, I have come to the conclusion that  instead of  there being a change for the better, there has been a change for the worse.” (The Collected Works of Mahatma Gandhi, Vol. X, pp.279-80). The resultant of the collective action(karma) of people of the world was negative , during the 18 years of  ‘study’ done by  Gandhiji. The representatives of various nations constituting the  Intergovermental Panel on Climate Change (IPCC)  recently declared unanimously that human activity/karma is responsible for the experienced climate change from its normal pattern, and that it  poses a threat to lives and livelihood of many. That is the net result of all human karma is negative.

The Gita  in unequivocal terms, declares this fact in Chapter 18, Sloka 48. It states that all karmas/actions  have negative consequences.  In connection with this sloka, supplementing the same or there is even the possibility that independently of the same, there is a sloka in Manusmrithy , applying this real fact to a primary human activity. “ People think that agriculture is something wholesome. Yet it is an occupation condemned by good people; the plow with an iron tip lacerates the ground as well as creatures living in it” – Manu’s Code of Law , Chapter 10:84.

Lot of calumny had been heaped on Manus’s Code of Law , in modern India, but anyone studying the same will realize that our wise sages had tried to regulate the karma/action/ work/ movement  of members constituting society, so that ultimately they proceed  in the ‘centripetal’ direction. That is,  the natural and legitimate destination  of all(men, women etc) being the SOURCE, without leaving none, all should be directed towards that source. This well conceived plan suffused with good intentions could not be understood by the modern mind, who were entirely misled by the theory of hard-work.  Hard-work was associated with Godliness,(Protestantism) and men like Benjamin Franklin popularized the ‘virtue’ of hard work. “REMEMBER that time is money. He that can earn ten shillings a day by his labour, and goes abroad , or sits idle one half of that day, though he spends but sixpence during  his diversion or idleness, ought  not  to reckon that the only expence; he has really spent, or rather thrown away, five shillings besides.” From  ‘A Good Conscience, Advice to a Young Tradesman’ , Written in 1748 by Benjamin Franklin. We should take note that Franklin’s period corresponded to the beginning of the Industrial Revolution, which ultimately resulted in the decimation of Indian manufactures, which were sought world-wide.

Gandhiji was concerned that power driven machines will increase production (as well as wastage) , thereby throwing people out of work. Well this has happened. He said due to introduction of machines, wealth will be concentrated in the hands of few, because capital is needed for machinery and associated infrastructure and raw-materials. This also  has come true, if we consider  the HNW (High Net Worth) Individuals. There is another face to this picture. Though machines have saved labour leading to unemployment, those who work with machines have to work more hours during these times. Computers have replaced many employees in banks. But those working in the bank on these machines has got their work-load increased. Machines  have thus introduced modern slavery. This slavery is of two kinds. Voluntary and Involuntary. The former denotes addiction to gadgets, games, movies etc. Thus as per our shastras, many thrown out of work due to power driven machinery are not able to do karma. Thus they are unable to wear out the karma-vasanas (or karma) , which is necessary for  liberation. And those working with machines, unwittingly are increasing  the karma,and its negative effects. In addition to spoiling the environment and thus violating other beings,  they also are denying themselves exit from the cycles of birth and death.

It seems, the Karma Theory has wound its way in the initial chapter of the Bible. Are not the images of the  tree of knowledge and the act of eating its fruit, karma related? Is not the story of The Tower of Babel , related to Karma?

TEN THOUSAND COMMANDMENTS

Now coming to the Title of this Mail.  “Ten Thousand Commandments”  is the name given to an annual report published by both the Cato Institute  and the Competitive Enterprise Institute, and its author is Clyde Wayne Crews Jr. http://www.tenthousandcommandments.com/p/cost-of-regulation-past-10000.html

He informs that “The exact cost of federal regulations can never be known, Federal environmental, safety, health and economic  regulations cost hundreds of billions of dollars every year-on top of official federal outlays.” An observation from a 2005 report “ Regulatory costs exceed estimated 2004 individual income taxes of $765 billion, and are far greater than corporate income taxes of $169 billion”.  Bossing people around (karma) costs lots of money. Excessive karma, has made America into an Empire of Debt.  Excessive karma is resorted to by Chinese workers to supply America with loans and goods. Which they (Chinese)may never recover.

Even Bertrand Russell had declared in 1930, that excessive work is responsible for the woes of this world. (See his essay in Praise of Idleness). Similarly in India we are affected by  the adverse consequences of the culture of  ‘excess of work’  represented by liberalization and globalization and new management thinking.  We may just take one or two aspects. As told earlier, most employees are doing slave work. Most are not comfortable with their work.  Then the new work culture has made people ambitious & greedy. The corruption cases has increased exponentially. Imagine the direct revenue loss to the Govt due to this  pillage by politicians and bureaucrats hand-in-glove with corporates. Further imagine the money that will have to spent for investigating these crimes. Further add to this the costs and time spent by courts, policemen, witnesses ,the money spent  for shuttling these  criminals around to take evidence etc. And if  all the scamsters are convicted and sent to jail, new prisons has to be built and also imagine the cost of maintaining these criminals. Unless we take heed to Karma Theory and regulate karma, we all will be suffocated to death, because of the burden brought about by excessive karma.

I end with the following words from Gandhiji  “I am not aiming  at destroying railways or hospitals, though I would certainly welcome  their natural destruction. Neither railways nor hospitals  are a test of a high  and pure civilization.  At best they are a necessary evil.  Neither adds one inch to the moral stature of a nation.  Nor am I aiming at a permanent destruction of law courts, much as I regard it as a ‘consummation devoutly to be wished’. Still less am I trying to destroy all machinery and mills.  It requires a higher simplicity  and renunciation than the people are today prepared for” (Young India Jan 1921)

CASTE CONTRIBUTED POSITIVELY TO INDIAN ECONOMIC PROSPERITY !!!!

"Historians & Anthropologists have also begun to recognize that caste helped to promote economic activity in a number of ways." Page 6, Middle of paragraph no. 2

Indians will have to reconsider and re-imagine the institution of CASTE in pre-modern India, in  favourable light. Caste is unique to India. Caste Institutions have contributed to economic prosperity of India, and latest 'research' acknowledges this positive contribution of caste institutions

The book 'Why Europe Grew Rich and Asia Did Not' authored by Prasannan Parthasarathy , Associate Professor in the Dept of History  at Boston College  and first  published by Cambridge University Press in 2011, states that Caste  was not an obscurantist  institution, as it is made out to be,  blocking the enconomic well-being of the masses, belonging to various castes.Caste is always vilified in post-Independent India. In actuality it was/is a benign institution, and had kept the country from slipping into chaos on many adverse occassions.

Scanned image of Page No.6 of the above book, with the relevant paragraph.

Prasannan Parthasarathy (1) http://www.bc.edu/schools/cas/history/faculty/alphabetical/parthasarathi_prasannan.html
(2) http://www.keywiki.org/index.php/Prasannan_Parthasarathi

Boston College, History Dept.