Of Markets

Of Market:

There is nothing called “market” or “Capitalism” as such. Two human beings meet, one has surplus of something, other needs it, and buys it on mutually acceptable terms. So long as nothing interference in the transaction- government, local musclemen, force by either of the parties; things will become ever more efficient, cheaper, more abundant; and each will become more prosperous. People will produce what they perceive to be in demand, will try to make it as cheaply as possible, and in as larger quantities as possible, as efficiently as possible. People will try to gain skills which are in demand. Some will misread the demand and ruin themselves, will get up and do something else. As soon as force is introduced by any agency, ruin of everybody starts. Sclerosis spreads. In fact, government has only one role: to keep force out of business transactions. Which it not only seldom does, but in fact becomes one of the manipulators of markets. It is evident that those who had misread the demand, will try to get a babu to orders others to buy from them, or to keep other producers to out of market, or to fix a quota for everybody; if babu has been given such powers. So corruption starts, and inefficient businessmen stay in the market and better and efficient ones are driven out if they are not able to play the game of corruption. And since corruption makes sure that market is no longer free, people do not make things better, cheaper, and more. Productivity doesn’t improve. And productivity is nothing but the prosperity of a society. American per capita GDP is 30 times more that of India. That means only one thing: an average American produces 30 times more than what an average Indian does. They are not richer because of slavery or colonialism but because of their each year’s produce. And the above also makes clear that the trading place doesn’t decide what is being traded. That is decided by the morality of a society. And morality of a society is decided by the society itself, not by trade.