In 1991 India decided to do away with socialism and embrace capitalism. Economy was opened up, licenses were liberalized, and foreign direct investments were allowed. I am a member of the Roman Catholic Church and our economic policies are much more in tune with socialism rather than capitalism or communism. Before I state the problems of our economy let me explain these economic terms a little bit.
In capitalism, the consumers are supposed to benefit. We do a job and amass a capital. And that capital is again used to amass more capital. With the capital we buy goods and services. Consumers have choice to buy or not to buy a product or service. And the consumer is king.
In communism, the idea of distribution of wealth is different. Everyone works for the common good of the society. For the state. And the state looks after the welfare of the workers, of its citizens. Workers are supposed to enjoy fair treatment and greater benefits.
In socialism, it is a mix of the above both. Free capital is allowed unlike in communism, but the state still provides a lot of public services for the common good of their citizens.
In India, socialism has purportedly failed because it became the worst of both worlds rather than the other way around. Instead of showing the good qualities of both communism and capitalism, our bureaucracy; corruption, and especially corruption in the bureaucracy ensured that socialism failed.
Let us examine the state of affairs as we see in our present world.
China is currently the epitome of communism. If I were in China and got married and had a few children there is a possibility that I might be jailed. The Communist party there decides how many children their citizens should have. As a human being who believes in freedom, I simply do not like that.
Exploiting factory workers in China by locking them up in dormitories and feeding them a few packs of biscuits before making them work on making iPhones is human-rights-violation in the United States, not in China. What did you think about the low-cost of Chinese products, uh?
So the system supposedly made to help the workers is exploiting them. Certain industrialists in Kerala support the Communist Party for no other reason. Communism is flawed.
Capitalism is made for the consumers. Right? After making soda in sugared water American Capitalists sell it for exorbitant sums of money. How? By the help of advertising and marketing. Everything is traded in the United States of America, currently the most powerful nation in the world. Services, goods, aerated water, human beings themselves. For what? For capital.
The homeless-man seeking alms in front of the bakery and sleeps in the pavement might be a former soldier there in the U.S. Since he has no capital and has lost the ability to earn capital he sleeps in the street. Other men are totally busy in earning their capital. Capitalism is evil.
I am not paraphrasing the book Freakanomics here. One former home minister in Kerala said that they are going to increase the number of Police personnel here. What will happen?
For me, the number of criminals and acts of crime will also equally increase. A balancing act.
We have to bring back an economic system where there is freedom for all human beings, freedom to choose, the right for trade, and where there is support to live and where the dignity of work and the honor of life is acknowledged.