The Simple Path to Prosperity
Its all about money, isn't ? The older you get the quicker you realise this, but its a good thing , in fact its a great thing we are running behind money.
Running behind money is what made us a superb civilisation that we are today
But sometimes we complicate things and start believing in things that cross the realm of the common sense and this is where the problems start.
Enter Socialism , the very word vaguely inspires doing good to people, yes on paper its all very rosy that people are given free food, free medicine , free shelter , free power , free everything, but it never works not even once and we never learn.
Its almost a pathological addiction for people to fall into the trap of socialism.
Talking about Capitalism , the very word means something to do with money and should probably be evil.
The funny thing is in the end Capitalism wins , every single time.
People are not queuing to get work permits to Russia , Venezuela ,Cuba or India the historical bastions of socialism, we should wonder why , if socialism was such a wonderful thing , why did these countries fail (either in the past or incase of Venezuela even today).
How does a country (Venezuela) with second highest proven reserves of oil suffer from food riots and the highest crime rate in the world , while the bastion of Capitalism- Switzerland enjoy one of the lowest crime rates (which practically has no natural resources )?
Again , why do we never learn, is learning not in our genes ?
Why do we trust governments way too much and consider that they can fix our problems ? why do we need governments to be the BIG BROTHER to keep helping us all the time ? why do we never grow up ?
what is socialism anyway ?
Socialism essentially is a simple idea ( funny enough so is capitalism ) in which the government takes care of people, provides subsidies on most things that people want in day-to-day things like food , water , shelter, electricity ,roads, trains you name it, in return governments takes control over Industries and collects a lot of taxes so that it an provide all the FREE stuff.
Things in Capitalism on the other hand are handled by business men who control industries and run things for profit ( Greedy fellas … booh !!), obviously not many free stuffs here :)
Many Indians often wonder ( including myself) why India after 70 years of independence still remains a third-world country when small countries like Singapore have overtaken the world’s richest countries in the same time practically from nothing ( Singapore also has world’s lowest crime and worlds best business friendly policies).
India started on a destructive path of nationalising banks and every industry possible, imposed strict quotas on few industries that were open to private individuals, the result was one of worst managed budgets with overnight 100% inflation sometimes. The country on the verge of collapse in 1991 opened up majority of Industries to private ownership, when the country’s prime minister paid heed to the advice of the world bank( he takes full credit for saving the country though). The result was almost instantaneous, every since India has enjoyed tremendous growth rates and is now on path to becoming an economic super power in few decades ( One wonders what could have happened to India if they learnt the lesson a bit before ).
The problem in a socialistic state is governments addict people to free stuff to get their votes, and in return take control of their destiny.
Modern world is truly nothing but a bunch of innovations that make your life easy, now if you think about it- why are innovations never done by politicians anyway ?
The only true innovation by politicians is Progressive taxation :)
An example of New York and Buenos aires is especially relevant here
In the beginning of 20th century both Argentina and USA were at similar levels of prosperity and were in equal standing in the eyes of immigrants seeking opportunities. After multiple decades of socialism, Argentina remains as a second rate state with a super high double digit inflation rate.
Socialism mixed with Fiat currency gives unimaginable power to governments and wreaks havoc on people’s lives but in a very slow and subtle way that your average person would never realise.
your common sense is always correct , the simple path to prosperity is hard work, not forcing people to pay more taxes so that the ‘Poor’ can enjoy more free stuff
Funny thing is people rarely learn, when countries get reasonably rich they start thinking about redistribution of wealth, economic justice and other politically interesting ideas never thinking about how the rich got rich in the first place.
I hope this inspires you to think a bit more about more about governments and their role on our lives.
Now if you are thinking about changing your country-men towards more capitalism you are a real fool, just swap your country my friend.
P.S some fantastic quotes by Thomas Sowell on socialism and capitalism http://www.patheos.com/blogs/davidclarke/2016/12/14-thomas-sowell-quotes-absolutely-destroy-false-claims-liberalism/