Karti Chidambaram should read Milton Friedman
I stumbled on this article by Karti Chidambaram – identified simply as an AICC Member – more widely known as P Chidambaram’s son, earlier today and could not stop myself from responding. In the piece, titled “Elections and the art of giving“, Karti makes some outrageous statements – which – at best reflect an amazing lack of understanding of basic economics and at worst, are a pitiable attempt at justifying cash-for-votes that is now considered “routine“Â in Tamil Nadu.
Karti starts off by saying that the..
..word “sop” itself is used crudely. It stinks of the kind of elitism that does not understand universal needs and concerns.
I did not know that words “stank”. That apart, the Oxford Dictionary defines “sop” as (emphasis added): “…a thing of no great value given or done as a concession to appease someone whose main concerns or demands are not being met… The Cambridge Dictionary offers a similar definition. So a “sop” is at best a palliative; at worst – a temporary “gift” to stop people from complaining.  Karti then goes on to say that:
(sops are like)…simple benefits that are directly given to the people of a lower socio-economic class.
Simple benefits? A colour TV counts as a “simple benefit”? and who decides what this “simple benefit” should be?…and why should this “simple benefit” come above clean water, regular supply of electricity, good roads, good education and basic healthcare? And who pays for this? Where does this money come from? As a recent piece in ToI reminds us:
Freebies are paid for either with black money, which should have gone to the public exchequer or with taxpayer’s hard-earned cash. In Tamil Nadu, since 2006, the DMK regime has purchased 15.3 million TV sets to give away as freebies, costing taxpayers Rs 400 crore. Of this, according to an RTI revelation, about Rs 80 crore had been diverted from state funds meant for lower caste welfare programmes. No prizes for guessing who’s going to foot the bill for all the mixers, blenders and laptops.
..(address) the needs of people who are not like us, not from our background…(but that) does not mean it is bad politics or bad economics.
Now I may be reading too much into this…but doesn’t this sentence “Addressing the needs of people who are not like us” feels a bit, err “elitist”? And don’t I pay tax to the government for exactly this purpose – addressing the needs of the less fortunate or those have been deprived of even basic necessities? Karti then gives the game away in next sentence:
In Tamil Nadu, parties started (sops) as a way of fulfilling their socialistic agenda. It began as a method of distributing access to various goods and services…
So that’s it…These “sops” are part of the “socialist agenda…and distributing access“. Would it not just be easier to address poverty directly Karti – which leads, amongst other things – to lack of colour TV sets? and refrigerators? and saris?
Would it not be easier to work on making poverty history by creating an environment that lets (and helps) people earn and make money and access these goods and services – instead of relying on “sops” to meet their needs? But like most “smart” politicians, Karti knows that making povery history will make this brand of politics (and politicians) history too. Now that would not be very good, would it?
Karti then compares these “sops” to “a successful welfare scheme” (!) and proceeds to dismiss the “anti-sop argument” as coming from “the upper middle class intelligentsia“. He further accuses the argument against “sops” as having “discriminatory overtones” and says “..it may be a kind of economics the middle class does not understand..” (sic).
Now, this is a text-book case of how the debate is confused and issues muddled..So let me try and lay out the argument against “sops” and socialism in simple, “lower class” terms….
- Human progress is predicated on freedom
- Free women and men are most productive; they create wealth – not just for themselves – but also for others;Â All innovation and creativity flows from freedom
- Socialism stifles freedom; it stifles innovation; it hinders productivity
- Socialist societies are – without exception – worse off than those that have adopted the basic principles of economic and political freedom
- Distribution of wealth is a dangerous idea; It fuels discontent amongst the ones who feel they have been deprived; It breeds dependency amongst those who receive
- Instead of “equality” amongst people – which is unattainable – we should strive for “equality of opportunity”. That alone can lead to sustained progress & prosperity
I will also request my friend and FTI colleague Sanjeev – who is far more well-read (and I dare say, articulate)Â on socialism and capitalism than me – to share his thoughts on Karti’s piece. And of course I would welcome your thoughts, comments and criticisms – as always. Â Please also take a few minutes to watch Milton Friedman in this 2-minute clip explaining why capitalism is good:
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Related Posts: “Kaam Aadmi” Politics – Can it Work? A review of “Breaking Free of Nehru”
Yeh “Liberal Agenda†kya hai?
How can anyone make a living from selling slices of coconut?!
and 2 somewhat related articles on cash transfers (which is not what Karti is talking about in his piece)
Each & every response of yours makes complete sense, Shantanu. When one grows in a society that hasn’t seen the facts of life, the meaning of dictionary gets replaced by the general notion of that society & Karti suffers excatly from that. Believe me, this is true for any society & not just his. “My stomach has got acidic” may mean the he forgot to take his morning Orange juice for Mukesh Ambani while it may mean skipping the lunch for people like you & me & may refer that a begger didn’t have anything to eat in the last 24 hrs. Definitions change!!! Kash sabke liye ek dictionary bana pata, kamse kam log chezhon ko thik se samajha to pate!
Shantanuji Karthi C has only enjoyed the benefits of an already perverted & corrupt father, stubborn mother. I can only pity him, because he will not understand the economic balance of any Nation. He has ensured with his money power, that he has a following. Even K.P Rathish another MP who was driver of Sudhakaran, foster son of JJ has better following. They will diminish very fast in the political arena, with the advent of Nationalism.
Jai Hind.. Vande Mataram
Shantanu, I read Karti’s article carefully and I was quite impressed with the line of thinking. Thanks for providing the link. Please don’t forget that his dad’s party isn’t winning in Tamilnadu and has not been winning for decades now. He could well have taken the ‘sour grapes’ line and criticised parties that distributed ‘sops’. That he hasn’t done so must make you think. He accepts that ‘cash for vote’ is a corrupt method, but he does go on to say that there is a limit to the sops parties could give. He says that people are smart or that people eventually become smart and move on towards voting for candidates/parties that take up their problems, so, the sops given get disconnected from votes given. He ends up with a prediction that these sops will fail to influence voters in the end. In fact, when I read the article again, I thought it was brilliant.
Now, let me toss this ‘friendly allegation’. Indian politicians know conditions in India, the psychology and the needs of voters. In the old days, the leftists imported ideas of Marx and checkmated original Indian thinkers. What you are now doing is dropping the names of the likes of Friedman. That, in my view, is the most elitist thing one can do. Think about it. Your criticism is elitist. His article is down to earth. Criticism of this comment welcome but please avoid phrases such as Gandhidas or Congressdas or whatever.
@Prakash: If I had mentioned Rajaji, instead of Friedman, would you have still called me “elitist”?
Short answer, Yes, in the context of this article and its criticism, YES.
Dear Shantanu
I read the Chidambram article with unmitigated dismay and anger at the THIRD RATE quality of politicians who are being elected through the black money machine of the major political parties.
What Karti the devious corrupt hypocrite wolf in sheep’s clothing did not mention is that such schemes serve a dual purpose: (a) throw wool over people’s eyes while (b) lining the pockets of the political party in power.
Buying crores of rupees worth of TVs and other such goodies in the name of the “poor” at inflated prices while pocketing 50% commissions in Swiss accounts is the standard technique of all these looters.
We have been looted and fooled not by one but by three generations, and the loot doesn’t seem to stop because we are so easy to fool as a poorly “educated” people.
The logic of Karti is so spurious it is not even socialist. The socialist does not distribute ‘sops’ and TVs. He, like Nehru, nationalises everything in sight and destroys the productive power of the people. Karti type looters are purely engaged in the “business” of making money through the political system. They are sham socialists, sham Indians.
I know that Karti’s father has at least some basic intelligence, so presumably Karti has some too; but this kind of intelligence is used NOT for the nation, but AGAINST the nation.
These are enemies of the people of India. They deliberately initiate policies to EXTEND and prolong poverty and illiteracy, thereby hoping to remain in power through “sops” and the money looted thereby.
If Karti was EVER serious about removal of poverty, that can be done in a MAXIMUM of three years. Permanent and total removal of poverty; permanent and total increase in literacy; and the end to stupidity and corruption.
But then Karti won’t remain in power. He will be booted out.
And so India struggles at 10% of its potential after 60 years of independence. Choked to death by these rascals, we suffer as these rascals (who have the audacity to call others “elites”) store MILLIONS of dollars in Swiss accounts, gallivant in special jets and business class all over the world, all at the expense of INDIA.
Shame on Karti. This kind of shoddy attempt to justify CORRUPTION is simply intolerable.
Unfortunately, the Jan Lokpal bill won’t catch these crooks, it can’t.
The reality is that a totally new political movement has to arise, based on good logic and common sense. Based on the defence of freedom and integrity. Based on the goal of lifting EVERYONE well above poverty and ensuring that each child can be educated in a school comparable with the best in the country.
In BFN I have shown how that can be done in THREE years.
And yet, I wonder when will India learn. What can be done about this God-forsaken country that can’t distinguish the good from the bad.
I make an appeal through your blog to Indians to wake up. Please try to wake up and remove the wool that has been cast over your eyes by criminals and crooks.
Sanjeev
Just for the record, although I’ve already referred to it in BFN, I was booted out of the position of Director of Rural Development of Assam because I refused to allow the CM to get a deep commission from the purchase of cement for the department. That would have easily netted the CM lakhs of rupees (in the days when a crore rupees meant something) had I allowed it. These crooks TOTALLY LOOTED the country in the name of the poor.
I am referring to the Congress party CM here. Indeed, the whole party RUNS ON BLACK MONEY AND LOOTING THE PEOPLE OF INDIA. Show me ONE totally honest man in Congress party (indeed, in any major party) – a person who does not DIRECTLY OR INDIRECTLY loot the country: a person who can PROVE his honesty to me – and I’ll offer a special puja for Rs.1000 in that person’s temple/mosque.
There WERE a few honest people till the late 1970s, e.g. Late Sarat Chandra Sinha – but these people were sidelined by Indira Gandhi. Today there is NONE who doesn’t loot India.
I can understand the agnst of Baba Ramdev when he says he would like these people to be hanged.
But I don’t want to engage in witch-hunts. I want to change the system so such people simply can’t get elected – and indeed, such people also change for the better.
Sanjeev
Sorry, one last thought and I’ll stop.
If these people were really serious about removing poverty, they’d carefully identify the poor and give top up cash directly into the poor person’s bank account. That way if Rs.1000 was given it would end up as Rs.1000 in the poor person’s account, with Rs.0 in the politician’s Swiss account.
Why not ask this Chidambram fellow to actually give cash? on the line of Milton Friedman’s negative income tax scheme, fully elaborated in my book BFN – subject to public disclosure and audit of those who received the cash? He’d balk and make lame excuses. He CAN’T MAKE MONEY FROM CASH given to the poor person’s bank account. He will only give TVs and the like, from which he can skim off huge commissions.
Anyway, I’ve got to let this topic go, now. You get the point (and also, I hope, your readers, some of whom appear to be super-gullible).
S
This technique of writing about everything while appearing to write about one thing amazes me. I have just one request to guys commenting here. Please begin by stating whether you have read the original article (by Karti) carefully. Please stick to the topic. Do check whether Karti has praised socialism or corruption. It doesn’t make sense to raise a debate about corruption or about whether socialism is good if the original article isn’t really making that point.
Do please try to understand that Congressmen are not untouchables, intellectually or otherwise.
Nice article and valid points Shantanuji. Well knowing what happens in TN, I can definitely say not all those who got the sops were “people who are not like us” or so called “lower strata of society”. Lot of middle class people received TVs and they either sold it or kept it as an extra one.
Now we are hearing of laptops for students and mixies and so on. Now perhaps Mr.Karti can answer these concerns!
1. Government run schools are in a major dissaray with poor infrastructure. Many are poorly staffed, or staffed by teachers who belong to the same ilk who only look at entitlements, but do not care to fulfill their duties. With so much dropout rate wonder if many of these kids will even goto college.
2. Thanks to large powercuts, electricity is a privilege during the day even for middle class folks. Wonder if the so called lower income groups get electricity even. Thanks to large events like Tamil Manadu we have wasted electricity for so many years to come, and these events never end. Wonder when then will people use these mixies and grinders? Atleast if these sops were a solar panel or something for a house or for a community, it may have been a decent sop.
When you know it is a bad idea and still have endorsed it, you go out of the way to justify your choice however weak the arguments may sound. This is what politicians are trying to do. People are getting fed up of this, but when there are goondas forcing people to get these sops and vote, there seems to be no end to this madness.
Vidhya has made some pertinent observations. One, that goondas force people to get these sops, something I had heard from other sources. Secondly, that the money spent on sops might be put to better use.
The takeaway from Karti’s original article, as I understood it, is that people will wisen up to the fact that these are ‘cheap’ sops, therefore, one way of addressing this problem is to educate people about what might be more useful for them. All such sops, in India and elsewhere (I am alluding to the various benefits ‘officially’ dished out) ultimately enslave people by keeping them poor and rendering them unfit to help themselves.
As I see it, this is, at people’s end, more about freedom than about corrupt practices. In the developed world, the sops are decorated as benefits; in the developing world, as various handouts given to people where politicians need aam aadmi (add to the election time sops the money dished out for getting people to political meetings, morchas, and so on and so forth and don’t ever forget the cheap rice and grain. That last sop is wrecking havoc in villages as people are losing the will to work on a farm.)
SOPS are used to mainly play swing politics. Political campaign is like marketing, making your point in 30 secs. Indian politicians are not dare devils. Lot of their personal interest is at stake and thus loosing is not a part of their game. Politics should be played in such a way where the players and the nation have nothing to loose but the voters do.
Herewith is my take on Karti’s article.
The kind of elitism that does not call reducing the cost of aviation fuel, slashing income tax from 30 to 10 percent or giving a Rs 45 crore tax waiver to the ICC (to conduct the World Cup in India) as sops. Addressing the needs of people who are not like us, not from our background, does not mean it is bad politics or bad economics.
>>>> Any incentives can be called SOPS if they are used to influence the voters.
>>>> Looking at micro level, it is a win-win situation, thus not a bad economics. But addressing the needs in this way is little overstretching and corroborating the real essence of Politics, the collective decision and Government behavior.
Sops are not just part of a vote-catching exercise. In Tamil Nadu, parties started it as a way of fulfilling their socialistic agenda. Like any successful welfare scheme, it eliminates the middleman and cuts through the stodgy bureaucracy.
>>>> If this happened the way it is said then it is a welfare scheme. But, do the people really needed this welfare scheme is intriguing.
In that sense, every election promise has an ulterior motive. It is a bribe.
>>>> It depends if it is used to corrupt the voters or influence the voters.
When markets were soaring, the smart investment bankers on Wall Street derided State intervention, but in the end, they needed the US government to bail them out with taxpayers’ money.
>>>> This is an excellent point. This is one of the drawbacks of the market Economy. Bail-out is used to provide temporary relief to protect the jobs as eventually the market is going to shift.
I do not believe for a moment that sops are the only parameters people keep in mind while voting. People look at candidates, alliances, local issues and the overall track record of the administration.
>>>> This is an under statement as it doesn’t explains the existence of the criminals in the Politics.
People are realistic, let us not underestimate them. They do not expect us to transform their world overnight with a magic wand, but they do expect us to be truthful. People will remember and reward a promise met, just as they will punish ruthlessly if you default.
>>>> This statement conflicts with itself. This doesn’t explain the phenomenon of the people voting for a change.
||namO Bhaartam, namO Sanskritam||
“You get the point (and also, I hope, your readers, some of whom appear to be super-gullible).
Aren’t Macaulayites super-gullible too?
Regards
Sandeep
Good point Sandeep. Actually all the convent educated class is gullible. But keep in mind that its the Elites who runs the show. They manipulate the Macaulayites for servitude. Look around you if you want to feel pathetic.
Just utter some anti-hinduism, in the media, and you will be paid in milliions. I don’t need to provide facts, do I.
||namO Bhaartam, namO Sanskritam||
Hello Shantanu,
Unless already published, in which case I would be glad to read it, I would like to know your views on socialism/capitalism as currently understood.
I believe both capitalism and socialism are misunderstood by many and from a point of view of governance and structure which every society tries to provide to its residents, it is the implementation of either system which is flawed.
I am sure, in your quest for a better society, at some point in time you will have to provide solutions which you believe will help in the same and I am keen to know your views.
Regards,
S
Both the parties in Tamil Nadu (DMK & AIADMK) are competing against each other as to who is going to give maximum sops. It is ridiculous. You have anything and everything from Gold to Laptops to Mineral Water (yes, it’s true), to free rice to sugar and of course, Televisions and Money.
We live in a fairly upmarket area in Madras (Chennai) and I remember my father telling me that we got a token to be exchanged for a Colour TV. For what on earth? They are just giving it to everyone and this whole argument that it is only for the poor is completely flawed.
@Rex/S: You have asked 2 questions in your comment…1] The difference (or rather my understanding) of socialism vs. capitalism. There are plenty of posts under “Political Ideology” that deal with that…(and the post above may also offer some hint)
2] As for “solutions” to the problems we face, none of the problems we face are intractable. They can be solved provided sincere people, with clear ideas and commitment join active politics..It is impossible to discuss my thoughts on all the problems we face (and I have yet to dive deep into many of them) but some of them (e.g. the issue of water security) have been covered on the blog (pl see various posts under Politics and Governance). Hope this helps..
@Rex/ All: Pl also have a look at The “Right” and the “Left” – Shaping the Debate
Many thanks Shantanu for your reply on the same.
I shall read the same with interest and revert on a separate thread.
Apologies for the delay in the response.
Regards,
S
I read the article few days back and was outraged. Then I felt junior Chidambaram is as smart as his dad. See, this fellow just does not follow the tradition of old politics, he rationalizes it by providing the defense of the indefensible. After all, a garden variety politician can dream up sops to buy votes and then use commission money to buy property. But you need young blood to rationalize the loot.
On a second thought, this was supposed to happen some day. Each generation contributes something to the society. P Chidambaram’s generation contributed socialism, poverty, corruption, loot and then more socialism, more poverty, more corruption and more loot. The new generation that has come up would like to theorize it. Their parents ensured that they are not touched by poverty or long queue in front of the government office. So they can theorize it by taking it to an abstract level, apply some reductionism and voila, media cheerleaders would package it in glorious wrap.
Welcome to new India, ladies and gentlemen. In this India, your hard earned money will be looted by the government and a tiny portion of it would be given to those who will spend it in the desi liquor store run by relatives of the politicans who will pocket the lion’s share. Then there will be likes of Karti who will rationalize it.
What? Not feeling good about it? You think you have a choice?
Men of genious are admired. Men of power feared. But MEN OF CHARACTER ARE TRUSTED. At the end of the day whatever ‘ism’ one follows, it all comes down to the CHARACTER of the leader. Since it is missing, the essence and understanding of any ‘ism’ is like BODY without SOUL and is a huge waste of time for everybody.
The ability of charlatan’s to portray their disgusting acts of corruption as acts of governance and to invoke other similar acts as supporting evidence without the fear of being dragged over the coals is simply put …. incredible.
Good expose Shantanu. But the media is not going to call his bluff.
Socialism is dead. Its demise will happen once USD hyperinflates. Once US looses its reserve currency status, world will not look at American way of life. The foolish teenagers and middle aged fools who ape the western way of life, will not have much chance of living in the same paradigm.
The sovereign debt crisis will reach india too and the existing political elite including the sons and daughters of politicians will loose it all. They will fight to keep it, but there is only so much gold for the value to pass through.
Lots of positives to look forward to.
Freegold here we come.
Gold, get you some.
http://fofoa.blogspot.com/
My opinion is that Karti is an idiot… Have you seen revelations about Karti Chidambaram in Wikileaks???
http://www.wahsarkar.com/?p=264
Political thinker and linguist George Orwell has written in his essay ” politics and English language ” about clarity of it.
” The great enemy of clear language is insincerity. When there is a gap between one’s real and one’s declared aims, one turns as it were instinctively to long words and exhausted idioms, like a cuttlefish spurting out ink.”
But alas most of our politician still believes that its more important to speak and write rather than writing sincerely and with correct thoughts.
Somebody in Chennai tweeted that Karti has amassed “more than Vadra” and the person was arrested under IT Act Section 66(a): http://janamejayan.wordpress.com/2012/10/30/compare-article-19-of-the-constitution-with-article-66-a-of-the-information-technology-act/
Amazing indeed, the speed of justice in this nation !
What should we understand from that ? Perhaps that Karti amassed *less* than Vadra ? Or do we set aside facts and comparisons, and just learn the “moral” of the story, that “where there is a will, there is a way!” ?