The Pyramid of Corruption

We are led to believe that corruption is nothing more than the ‘abuse of public power for private gain’ by government officials—a minister here, a bureaucrat there—in an otherwise perfectly clean system. But what if the system itself is founded on a deep, fundamental and dangerous form of corruption?

India Needs a New Economics

Pick up any book on economics, and you’ll find the word state mentioned in it at least once. In fact, from Adam Smith to Karl Marx, from Freidrich August von Hayek to John Maynard Keynes, the most important question economists have been trying to answer is that of the correct level of state interference in economic activities. Should markets be… Read more →

What Would Adam Smith Think of Our Budget?

With the Union Budget round the corner, it’s time to recollect what Adam Smith would have thought of people presenting budgets. He writes in The Wealth of Nations: The statesman who should attempt to direct private people in what manner they ought to employ their capitals would not only load himself with most unnecessary attention but assume an authority which could… Read more →

Why Mohan Bhagwat is both right and wrong about Mother Teresa

On February 23rd, RSS chief Mohan Bhagwat reportedly said the following at Apna Ghar, a charity and service organization in Bharatpur, Rajasthan: Here we will not provide service like that rendered by Mother Teresa. It is possible that her kind of work was good but there was a motive behind that service. It was to convert those she served to… Read more →

Some Notes on the 14th Finance Commission’s Recommendation

Milton Friedman, who won the 1976 Economics Nobel, has a wonderful way of explaining how one spends money. According to him, there are four ways of spending money as depicted in the table below. Whose money you spend On whom you spend it Yourself Someone else Yours I. You pay less You get more value II. You pay less They get less… Read more →