Socialism and Capitalism and welfare state, our existing economic systems. The alternatives finally of which we do not find any alternatives. Communism, what did it do. Foisted on us a totalitarian government where finally could not just live with it. Took away the basic requirement of a Human being; freedom. I am not even delving into the camps and the absolute power which corrupted them so absolutely. But Free Market, Capitalism and its different avatar has also not been panacea exactly. Few people are getting richer and I do not disagree that it has had far better effect than communism but it has failed. Look at millions of suffering, poor people.
Actually both have failed. It’s just that Capitalism is an alternative which serves the purpose of many and is kept alive. So what is the alternative? And like all the time I have a problem I find the answers in Gandhian ways. Gandhi was no economist but he had a vision of it. We had Nehru taking us to the Fabian Socialism way with Modern Temples of India, which actually are Monstrosities of India. But Gandhi said that before jumping into any Technology see what it would do for you. I am not against technology, but technology with a context is important, not without context. Do not just Rush in Technology. See what impact it would have on employment. Capitalism tries to maximize the efficiency of the production of goods, basic necessities or luxury goods. Socialism tried was to maximize the production of capital goods, such as heavy machinery (premise was, that future generations could enjoy a plenitude of consumer goods). Both capitalist and socialist economies were based on technology-intensive rather than labor-intensive production. Gandhi proposed labour Intensive production. The aim was to make sure that full employment in economy. So that all can provide for their own necessities by their own efforts. “With dignity, without any charity.”
Gandhiji was not at all opposed to technology. He wanted a proper mix of technology-intensive and labor-intensive production, depending on the stage of economy and situation of employment and poverty. The decision makers need to ensure this mix. Ensure and decide on the amount of available resources vis a vis with the population increase of employable workers. This should be the driving force for all the decision including external trade.
He said that we should always strive for income and wealth equalization by providing productive meaningful work for everyone, even if the full use of the latest technology is postponed. After all, what is the benefit of being on the cutting edge of technology if it increases human misery?
The echo of this where Gandhi Ji’s thoughts are articulated in economic terms is “Schumachers” seminal work “Small is Beautiful” Economics as if people mattered. I leave it at that.
PS: I am not much of an economist and have written many things which I may have understood and may have remained from articles which I may have read. Please do enlighten me.
