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© 2012 Sanjeev Sabhlok's revolutionary blog
In here talk Deirdre McCloskey said:
Big Question: quis custodiet custodiem? Who is going to “regulate” the government, and “protect” us from government? I claim that markets do so.
Governments reward the corrupt (both within government and in corporations). The huge bailouts in USA are a classic example. Those who worked hands-in-glove with government regulators to loot Americans were rewarded with bonuses – on the spurious ground that their business was too big to fail. It is like saying that if you murder 1000 people you must are to Heaven by God.
So how do markets regulate the government?
1) Well, the first thing is that markets punish crony capitalists. In his blog post yesterday Ajay Shah points out that according to Shekhar Gupta:
If you draw a simple chart of the large companies that have lost the most value on the stock markets over the past three years, you'd notice that almost all of these were doing business on the same cusp of politics, finance and natural resources. To that extent, you have to admit that the market has been the first to sense the rot and has applied a stunning self-correction, severely punishing those responsible for it.
This relates to India, but I'm sure it also applies in USA. This is a universal law. That markets are moral. They PUNISH the corrupt. Customers walk away. (Governments, on the other hand, REWARD corrupt corporations.)
2) But citizens walk away from governments, too, in the end. Governments too are not entirely exempt from punishment by markets. Like I have walked away, a refugee from Indian corruption, from the gangsters who are looting India.
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Related posts:
- When is it legitimate for a government to regulate?
- Lok Satta breaks Indian law for the sake of liberty, and the government watches, impotent! Well done, JP!
- Wealth Creation through Free Markets
- Why do airfares matter? Only safety is the business of government
- Has the Indian government committed unspeakable atrocities in Kashmir? #1
- The government can catch a private sector thief, but who will catch the government thief?
- Free markets and free men – by Milton Friedman
- Government obesity (Keynesian) can only be overcome by less government “consumption”
- Official government meddling in religious matters
- Is the Indian government trying to cheat hard working Australian contractors?
To spread the message of liberty and critical thinking, please share this post
Who is going to “regulate” the government? Markets. Here’s how. http://t.co/esJd9NSA
Who is going to “regulate” the government? Markets. Here’s how. http://t.co/oMjb51l0 #aboutme #india #liberty
Who is going to “regulate” the government? Markets. Here’s how. http://t.co/oMjb51l0 #aboutme #india #liberty
But your walking away isn’t the end. The idea of Strike doesn’t work against government unless the idea of liberty becomes pervasive and common.
The institute of government will fail only if everyone or the most will demand individual freedom and right to self-rule.
If “everyone or most” are not prepared to demand liberty, then exit is a key option. Other options exist (e.g. violent overthrow) – I’ve dealt with in detail in DOF. But even a country can be brought to its knees if its best people (I’m not including myself in this list) and capital walk out. In the case of India, two generations of its best people have left India, never to return. Some capital is now coming back, but much capital also left India.
Why do you think India cares so much for its “PIOs”? Because they represent cheap money. If people like me deposit money in our NRI accounts in dollars (I have some, too, deposited in India), India gets cheap foreign exchange. And if people like me travel to India regularly, it gets tourism dollars as well, as we use up lots of dollars each time we visit India. So today the millions of Indians who left India are very valuable. The Pravasi Divas, the OCI (permanent residency) favours – etc. all represent clout.
Yes, exit is a good strategy, even for regulating governments.
s
Let me emphasise. I left because NO ONE was prepared to demand liberty. I tried. Genuinely.
Even now I’m prepared to return if I can see at least 1499 other leaders willing to demand liberty.
India has a “manhoos” middle class. A narrow-minded, bigoted, identity-fascinated (e.g. whether they are Hindu/Muslim, etc) middle class. Not for them liberty.
Till there is ZERO demand for liberty, there is no point returning to India.
s