The Cost of Free Water and Cheap Electricity

Through its control of education and media, The Left has successfully created a new God- Government.

Unlike the Gods of various religions, the Government God actually is a benign fairy. It demands no worship, but it arranges all sorts of free stuff: free food, free housing, free education, free healthcare……free water, and the electricity at half the rates.

And even the educated, in fact even the atheists (as Leftists calle themselves), who call the worship of the traditional Gods as superstition, actually believe in its existence.

Jury is still out whether God of religions exists or not.

But the Government God is one real big fraud.

First about the language of the Left. In 1984 George Orwell explains that language itself can be so modified that lies become truth, and soon people may even forget that there is any difference between lie and truth.

Through the control of the language, the Left has now made it universally accepted that it is the Government’s duty to be a fairy, and arrange the free stuff. The only disagreement is now about the quantity of the free stuff, and among the political parties, the only competition is who can deliver more and better.

The original lie, that the government has to be a fairy, and can be a fairy, is now a sacred truth.

But government the fairy is the real demon. Demons of the religions may or may not exist, but the government as the fairy is a real demon, exists, and is destroying societies wherever it has taken residence.

 

The fact is the government has no money of its own. It never had, whatever was its form.

If government has money, that means that much has been taken away from the citizens who earned the surplus to their most basic needs.

Governments are constituted among men to discharge the common functions like Defence, Law and Order, and the roads.

For that they are permitted to levy taxes.

Nowhere in the original covenant of the society was it agreed that government can transfer the wealth of one citizen to another………

Even today, you ask any man, rich, middle class, or the poor; whether he permits government to take away his money and give it to his neighbour, the answer will be a resounding, vehement no.

But the Left successfully created this illusion that the government has money of its own, and with that money it is supposed to feed the people for free, house them for free, educate them for free, give them healthcare for  free. And if it is not doing so, it was only because the rich were misappropriating the government money (public ka paisa, they call it), and that was precisely why they were rich in the first place.

That is, the rich were the people who had cornered more than their fair share of government money.

And all that was required was that the Left take over the government, and ensure fair and equitable re-distribution.

First they tried the route of violent take over of the governments. But because the Free World was too strong, they failed to overrun the world, and those outside the countries controlled by the Left could see that the government was after all not a fairy, and nothing could be had for free.

But now the Left has discovered that the system it otherwise despises- democracy- is in fact its best ally.

All it needs to do is that through the use of media and education, create the meme that it was government’s duty to help the hungry. From helping the hungry, it soon graduates to government must take full care of a man from cradle to grave, and with enough voters convinced that government has money of its own, or worse, that it was government’s duty to loot their neighbours and share with them the loot, the electoral politics takes over.

Political parties start competing not on whether it is moral, legal and Constitutional to rob one man to feed another, but on who can rob him more efficiently, and who can transfer the loot to his neighbour more efficiently.

If a party says that it is wrong to do so, it can be sure of staying on the margins of politics forever.

With parties competing among themselves to increase the quantum of free stuff to win the elections; for the government itself, and as a consequence for the society and the country; it is the race to the bottom. The bottom of financial solvency, of work culture in the country, of ethics and morality among citizens.

Nothing impoverishes a country faster than a culture of government freebies.

Because government has no money of its own.

If it is giving a citizen something for free, it has to necessarily take away from another citizen not just the equal amount, but some more, to cover the cost of the government machinery itself that is doing the taking and giving away.

And result is that those who get the free stuff do not work, and those whose money is being taken away stop producing surplus, or stop producing anything and join the queue for the free stuff.

And as the money itself is nothing but the work done by people, with less and less people doing less and less work, government’s finances start deteriorating. It starts cutting back on essential expenditure like that on the military, on police, on justice delivery system, and on the roads. Soon even such savings become inadequate, it starts borrowing, but can’t repay the loans. Finally the debts come due and the government collapses, leading to anarchy and misery, in which the poor are hurt the most.

And so it is with the free water and electricity at half the price being promised by the Aam Aadmi Party in Delhi.

If water is to be given free, and electricity at half the prices, that much money has to be taken away from some other heads of expenditure like roads and schools. Therefore the roads and schools will deteriorate, leading to lowering of productivity, which will lead to lower revenue for the government, which will lead to even lower expenditure on the roads and education.

Another way of funding these two freebies would be to increase the taxes. That will also have exactly the same result for the economy. If more money is being taken away from the citizens by way of taxes, they will have that much less to spend on clothes, houses, household goods; leading to reduction in demand. That will lead to death of businesses and unemployment, and will increase the need for freebies.

Anything free or cheap is demanded more and is wasted more, and therefore demand for water and electricity will increase, which will either lead to even more expenditure on them, or to rationing of these two.

With all other functions of the government suffering as a result of free water and cheap electricity; general economic activities will suffer, leading to reduction in government revenue. Soon the Delhi government will be bankrupt.

Free water and cheap electricity, and all other freebies, are recipes for economic ruination. It speaks volumes about the economic illiteracy of even the better average educated citizenry of Delhi that they can fall for this chicanery of free stuff.

In fact to deliver the free stuff, government has to grow in size, has to intrude more in the lives of the citizens, and that always leads to more corruption, as is detailed in the book “ Corruption in India,” by Anang Pal Malik ( free to download copy is available at   http://thenationoftenrivers.com/book-launch/ ). Therefore, AAP’s freebies will actually increase the corruption, not reduce it. That means even the thing that birthed it-corruption-will only increase as a direct result of the free stuff policies of the government.

Remember, government giving away free stuff is nothing but Socialism, and whether a Socialist government seizes power through violence, or it is voted into power by those who want free stuff, it always leads to bankruptcy of the state/country. And few countries have been able to stand up again after ravages of Socialism.

The free water and cheap electricity being promised by AAP is horribly costly.

 

Why even the worst kind of religious, political, and economic systems continue to flourish

Those who come to benefit from a system, howsoever wrong, iniquitous, and destructive it may be; try to make sure that it continues. And since such people also control levers of power, they more often than not succeed. So, though on the face of it, it would look that industrialists would be the best proponents of the free markets, but because they are industrialists in a controlled economy, and therefore have learnt to play the system, they make sure through control of the political parties, media, and academia that the regulations stay in place.  Because they know how to bypass the regulations, newcomer won’t. And free markets would mean competition.Bureaucrats and politicians also play along, because they enjoy the power the regulations bestow on them. Power which is enjoyed for its own sake, and also to extract bribes. For example, India’s rent control law. This most destructive law, direct attack on the private property rights, the cause of housing shortage, cause of poor investor confidence in real estate, patently unconstitutional law stays in place because those who are its beneficiary control the media, political parties, and the narrative.

Clergy and ruling class also collude for the same reason-to prop each other to benefit from the power that a combination of religion and State grants both.

Man is not a moral animal. Morality is a learned behaviour, not genetic. And morality is the first causality if man smells advantage for himself in a wrong.

Everything is illegal, unless some law permits it.

IMG_5330

 

We have forgotten the most basic law of the modern, Civilized society. That everything is permitted if it is not prohibited. Now, we have come to accept the rule for slaves. That everything is prohibited till it is permitted by somebody in the government. And so MMRDA believes that what it has constructed is illegal because there is no law declaring it legal. Though there is no law declaring it illegal either.

Free born men can be conditioned to think like slaves, in a matter of few decades of living under Socialism.

The Curious Case of Pedder Road Fly Over

 

 

At least for a decade now we have been hearing of imminent-to-be constructed Pedder Raod Fly Over.

Those familiar with Mumbai know that it is the narrow, effectively a four lane road, connecting Western suburbs to the business district comprising Nariman Point, Fort, Colaba, and the diamond hub at Opera house.

It sees daily traffic snares during peak hours, and at noon when the school day gets over.

MCGM has had decades old plans for a Fly Over on this road, taking off from North of Haji Ali junction and landing at Marine Drive. Much like the JJ Fly Over few km east of it.

But plans have been plans only. Its construction has been effectively blocked by the residents who have properties abutting it. Most famous of these of course has been Lata Mangeshakr, who at one time had even threatened to leave Mumbai if the Fly Over construction was undertaken.

This Fly Over is the best example of what is wrong with the ruling elite of India.

See the ironies:

  1. Quite a few of the residents of the area are the folks who just send a letter to some collector in some rural district, who is then supposed to acquire land of the villagers, their only means of livelihood, so that they can set up some factory, some plant there, far away from the Pedder Road, which can not be pollutted, which needs to be preserved in its present Fly Over less pristine state. And he does, completely turning upside down the life of villagers whose land is so acquired.
  2. Rest all residents also happen to be there because of similar economic activites all over India. This is the costliest locality of India.
  3. They travel to airport, from where they take off in their private jets to their factories and plants, using at least half a dozen Fly Overs constructed on the roads passing through other people’s localities.
  4. Construction of a Fly Over is now an actvity that causes very little inconvenience to the residents on either side of the road, what with precast segments, very modern equipments for boring and excavation, etc.
  5. Weekly, if not daily, some Fly Over gets completed somewhere in similar locality in India. And of course huge lengths of elevated Metro Corridors are under construction in numerous cities all over India, on equally congested roads.

 

 

And yet, here we are, a whole State struggling against a group of very well endowed people using the cowardice of a corrupt ruling elite to block a very important infrastructure intervention in our prime city.

The tool that has come to be the most handy, is the same that is blocking so many arteries of economy: the so called Green Laws, enforced by the new licensing ministry, the Ministry of Environment and Forest.

Some facts:

  1. There is no forest on Pedder Road. At least I have not seen any during thousands of trips I have made over it.
  2. It is not an ecologically sensitive zone. It has concrete multistorey buildings on either side. No mangroves, no protected tree species.
  3. There is no wild life on Pedder Road. No endangered species lives there, unless you say that Crony Capitalists are an endangered species.
  4. So what is MoEF doing there? Why has it effectively blocked the Fly Over? Fly Overs are a very routine constrcution work now, we know what “environmental” impact a Fly Over has. It should not have even gone to this ministry for any clearances.

 

Exasperated, MCGM reduced the size of the Fly Over, thus taking it out of the jurisdiction of Central MoEF. Yes, monetary value of a project, and not its location in an ecologically sensitive zone, etc., decides who will get to lord over the case. The State authrorites have cleared it, and residents have promptly gone to the “State Green Tribunal.” A “Tribunal” created to “adjudicate” disputes between environment and the people, environment being duly represented by a whole army of “activists, NGOs, neutral-citizens, experts…….”

So we may finally have a truncated Fly Over on Pedder Road, if the State Green Tribunal lets it go ahead.

Almost similar is the case of a Fly Over at Modinagar, a town 40 km from Delhi, on the Delhi-Dehradun National Highway. NHAI planned to constrcut a JJ Fly Over type Fly Over, letting motorists travelling through Modinagar have a cross-traffic free travel via Modinagar. But the residents of Modinagar blocked the traffic for a couple of days, and lo, the administration caved in. Whole plan was changed and instead an Expressway between Delhi and Meerut was planned along a new route, involving acquistion of some of the most fertile agricultural land of India. Farmers had no roads to block. And even if they had, I am sure they would have been shot by police.

These two cases show why communists like Arundhati Roy become champions of the oppressed. They feed on the real mockery of equality before law so brazenly done by the high and connected. The high and connected who do not realize that such blatant mockery of law may someday give rise to such a tsunami of anger from sense of deprivation and helplessness that it will sweep away Pedder Road and Modinagar. And that it is also a form of corruption-a cashless corruption-not submitting to the laws which you get the administration enforce on others.

Both these examples show that our ruling elite has become so guilt-ridden that all it takes to freeze it in its track is a shout from some self-Righteous champion of some cause, “ You are doing this because you will get a cut !!”

A Journey From Modinagar To Manesar

Human beings settled down from a life of nomads to become farmers but soon afterwards those who were entrusted arms to defend settlements from raiders, turned on their own and declared that all land belonged to them and therefore anybody who wants to till it must pay a share of crops to them, the share was to be decided by the “owners”. Life continued like this for thousands of years, exploitation of farmers being benign or blood-sucking depending on the ruler of the time. Of course some were engaged in directly serving the rulers themselves and some supported the farmers in the capacity of tool makers and clothiers etc. but since farmers themselves were left with hardly any surplus, they could pay the service providers hardly anything. The life was brutish and short. And if at all somebody accumulated some wealth, he would be looted. Just as there were cultivators and their service providers, their remained looters, always. In fact it is said that rulers themselves maintained gangs of looters, after skinning farmers more money needed to throw at concubines was looted from traders etc.
Then steam engine was invented and industrial revolution was born. Factories came up that gave human beings an alternative to working on land or serving the rulers. However within fifty years or so of the Industrial Revolution, Karl Marx came on the scene and proclaimed that factory owners instead of liberating the workers were actually exploiting them. Owners did nothing but lived in luxury off the labour of workers. Therefore factories should be collectively owned by the workers themselves. Whole countries were taken over by the workers. Soon however it was discovered that with job security and guaranteed attendance based wages, workers stopped working, if not fully, at least not to their full potential. And therefore these countries, the paradise of the workers, collapsed. However the idea itself never collapsed. All along movements were afoot in all counties of the world to secure to the workers their “rights” and “fair wages”. The labour movements, it turned out were even more successful in the democracies than in countries with dictatorship of the proletariat, as politicians could be counted upon to legislate ever more “rights” of the workers as factory owners were overwhelmingly outnumbered. Soon the factory owners discovered that it is far better to shut down the factory or move it to some business friendly State or country.
So now I come to Modinagar, the city in the title of this note. It was a bustling industrial town. Just 40 km from Delhi. Textile, rubber, Steel, Leather, Sugarcane-you name the industry and it was there. Then the trade union thugs, the guardians of workers, arrived there in sixties of last century. And soon there were massive strikes to secure the rights and fair wages. By late seventies, most, except may be sugar mill, mills of the Modinagar closed down. Modis tried all alternatives. They moved some factories out of Modinagar to new townships they tried to set up but securers of workers’ rights reached there also and soon secured the closure of factories instead. Now all the workers of those factories must be dead-starving, unemployed residents of a ghost industrial town. I wonder what their children are doing, with no Modis to exploit them.
There is nothing called a fair wage. A man can demand only the wage below which nobody else is ready to do the same job. If he wants something higher, he needs to acquire skill for which market is ready to pay more. Then there is nothing called Right to employment. No human being is obliged to hire another and pay him daily or monthly wages. If it were so, how do we single out those who are obliged to employ and those who are to be employed? If a man gains by employing another more than he spends on the employee, why he would terminate the employment? And if he does not gain more than he spends on the employee, why he would employ?
All so called workers’ rights are frauds. All labour laws are un-constitutional and anti- worker. They kill factories and that hurts the workers most.
A factory is the nectar of life. Besides paying monthly paychecks to those it directly employs, it creates a whole township of employment around itself. Traders in dresses for the workers, tea-stall owners, barbers, eateries, schools, theaters, even thieves. When factory closes down, all lose their employment.
Few months ago there was a headline in the pink pages of some newspapers I get at home-“Hyundai shifts i20 plant out of India due to labour problems in its existing plant.” I thought this was a calamity bigger than an earthquake and Parliament would sure discuss it, and 24 hour news channels had got their story of the day. But nothing, literally nothing I heard in the days to come. All political parties, including those exclusively dedicated to workers’ rights and Bharatiya Adjournment Party, all remained oblivious of this National tragedy. No screaming TV anchor discussed the story.
Would the trade union thugs, the messiah of the workers, ever know that they had killed not a factory but a whole township of employment by frightening i20 out of India? Would anybody ever call out them for this most anti-worker achievement of theirs? And this does not include all the factories that would cancel plan to come to India because of the fate of i20.
And now we reach Manesar. It was a dusty, sleepy, decaying third world township, about forty km from Delhi, on the opposite side of Modinagar. One day, and they must be cursing the day, Maruti, our premier car company decided to set up a plant there. Soon other groups followed and it started its transformation into a modern industrial town. But alas, soon, the vultures who feed on carcasses of closed factories, the trade union thugs, also arrived. And now has begun the cycles of strikes in Manesar. It starts in one plant, and soon spreads to other factories. And most likely Manesar will be our next Modinagar. An industrial town that died before it was fully grown. And workers would have all their rights, with no evil fat cat factory owner to exploit them.
I have no problem with a worker saying that he won’t take up the employment below a certain wage. That is his right. I do not even have any problem with the worker who says that he won’t come tomorrow if he doesn’t get a certain amount as wage. I do not even have problem if all the workers say that they won’t be coming tomorrow if they are not paid wages demanded by them. BUT, can they say that they would not allow anybody else to take up the job either? Is it not violence and outright extortion? Should state support violence by one private citizen (workers) against another private citizen (factory owners)? And that too for the crime of giving them the employment?
Maruti factory at Manesar did not exist since eternity. It is not that Maruti came and seized a factory set up by the workers and started exploiting them. Maruti factory came there just a few years ago. Before that all the workers currently in it must have been doing something for the living. There are only two conditions possible-either workers had a better life earlier and in that case they should go back to that life leaving Maruti alone, or Maruti has given them a better life. Then what they have to complain against? Somebody comes and sets up a factory by cutting through the maze of 54 government inspectors, you on your free will decide to work in it against a pre-disclosed monthly sum and instead of saying thank you, you claim he is exploiting you and you have right to extort more money under threat of violence (some Maruti supervisors have been beaten up also) and government must support you in your extortion of another private citizen?
But government actually does support. And entire industries in States like West Bengal have been killed like that, freeing the workers from exploitation and giving them death by starvation in return and the vultures called trade union thugs have moved on to other industrial belts, to feast on newer carcasses of dead factories they would create.
If we do not abolish all labour laws (anti-labour laws actually), our industrial development will die before maturing and we would continue to remain a third world kleptocracy.
And our people would continue to be forced to emigrate, to gulf to work as slave labour and to the US and the West Europe, away from families and their people. Just because we needed to secure worker rights and fair wages.
Just imagine –in simpler term- your maid comes to you and says, “If you do not pay me so and so wages from tomorrow, I am not coming. And as per so and so law, you cannot employ anybody else also. I have informed the government. I have informed the trade union thugs also, if you try to employ somebody else, they would come and beat you up. Government would support them. I am going to sit on a dharna in front of your home also. So see you tomorrow.” What would you do?
You would curse the day when you employed her. And you would not employ a maid ever again. (There is fortunately no law yet that says every household will have to employ one maid and pay her so and so wages.) And she would starve to death. But at least her rights and fair wages will have been secured.
Workers of the Manesar unite, you have nothing to lose except your employment and your children’s employment…….(and as a bonus, you would get to beat up the evil, blood sucking managers of Maruti.)