Few days back I was talking to a Russian friend of mine and inadvertently the conversation turned to a Communism vs. Capitalism examination. I think that is a natural topic in these times where bailout packages and layoffs dominate headlines. But what stayed in mind was her last statement, that 10 years from now America will be a socialist state! And so the conversation ended and I went back to my office, but somewhere the thought lingered. Well protectionism is already here. But how much do I know about Capitalism and how much do I know about Socialism/Communism? Perhaps very little.
For a Keralite with some education in Bengal Communism would look like an easy frog to dissect, though not with me. But there is something about both Kerala and Bengal that is disturbing and baffling. That this thought occurs to me only when I am in a revolutionary mood is not to be mentioned here!!! Both the states for the kind of natural resources and intelligent population have not made commensurate amount of progress. While this is not a finger pointing exercise it has to be said that it is a legacy left behind by successive rulers and their policies. I used to wonder is it the influence of socialistic thoughts that caused this.
So this thought was there somewhere in my mind. But as fate would have it I was destined to live in a different place, Maharashtra, industrially and economically more developed than Kerala and Bengal. This was pure destiny and had nothing to do with my preference or non preference for socialism. I observe that while the same socialistic influences are still there, Maharashtra is more capitalistic, the state has a lot more entrepreneurial spirit and this has led to more development, job creation and ultimately more progress. Capitalism is based on the assumption that individuals operate based on self interest and this endeavor promotes the betterment of the society. Let me borrow from Adam Smith to make my point…. "by directing that industry in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention. Nor is it always the worse for society that it was no part of his intention. By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it." Somewhere an idea was crystallizing that Socialism/Communism does not work and that Capitalism is the way to go. It is something that can ensure quality of life and well rounded development. My theory had enough support from the collapse of Russia and China capitalistic overture.
Not sure when the plane took off and when I landed in the capitalist capital of the world, United States of America. The year was 2008. There was the customary excitement about gleaming lights, fast cars, tall buildings and express highways. All of it slowly waned away as I got used to the lifestyle here. I think time flies faster here, it is almost a year now and it is 2009 now. Bush is now a part of history and so are some of the giants like Lehman Brothers with few like AIG knocking on the doors. This is not a good time to be in the US as a migrant worker. Some days are scary with news of unemployment, collapsing stock market hogging the headlines. There are big debates about bailout packages. There are talks about containing migrant workers, removing tax breaks. The government is having to step in as a regulator and the market is not being the regulator. And I begin to wonder, is this not socialism, is this not protectionism? May be my Russian friend is right!
I come back to my original thought, questioning myself....was I right in my earlier belief that Capitalism is the way to go? Is this a degenerated scenario or is this the future of Capitalism? I realize what I saw in India was Capitalism in its infancy. Would I have asked myself this question if the economy was booming? Perhaps no....but I am sure this question would have popped up some time; the downturn is just a trigger.
