chanakya’s corruption solution vs arvind kejriwal’s chanakya well understood concepts that are...
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Message I sent to a key “New IAC” member today: The key point is that we need liberty in India. Liberty (both political and economic) is necessary for the people to achieve their goals. That means a government should not do more than these three things: defence, police and justice. These should be done well, and almost everything else left to the people to do on their own. They will always do so very well. Whenever a government tries to do things that people can do on their own, it will not only distort incentives in society, but will destroy national wealth. Sanjeev Sabhlok. 18 November 2012TRANSCRIPT
Chanakya’s corruption solution vs Arvind Kejriwal’s
Chanakya well understood concepts that are taught today in extremely advanced modern economics, such as the theory of public choice and incentive compatible contracts.
He said that very high salaries along with stringent accountability (audits, dismissal) are necessary to weed out corruption. The highest government functionary should receive 800 times the salary of the lowest functionary.
Arvind Kejrwal’s Lokpal plan doesn’t reflect even a basic understanding of causes of corruption and the ideas of incentive compatible contracts. His idea that MPs should be paid Rs.25,000 per month is guaranteed to increase corruption in India.
Sanjeev Sabhlok. http://sabhlokcity.com/ 18 November 2012
Will someone please teach this to Arvind Kejriwal?
Fundamental freedoms are paramount in explaining long-term economic growth.
Countries that favor free choice — economic freedom and civil and political liberties — over entitlement rights are likely to achieve higher sustainable economic growth.
In contrast, pursuing entitlement rights through greater coercion by the state is likely to be self-defeating in the long run.
Sanjeev Sabhlok. http://sabhlokcity.com/ 18 November 2012
Message I sent to a key “New IAC” member today:
The key point is that we need liberty in India. Liberty (both political and economic) is necessary for the people to achieve their goals. That means a government should not do more than these three things: defence, police and justice. These should be done well, and almost everything else left to the people to do on their own. They will always do so very well.
Whenever a government tries to do things that people can do on their own, it will not only distort incentives in society, but will destroy national wealth.
Sanjeev Sabhlok. http://sabhlokcity.com/ 18 November 2012
Lesson from Nehru: India’s first good man who was totally illiterate in basic economics
Nehru was a nice, good man. Everyone liked him.• He wrote against corruption and spoke against it.• He wanted to help the poor. • He wanted government to do everything for us, to run our
buses, to run our factories.
So why did he so miserably fail on every count? Because being good is not enough. Economics is the key.• Chanakya was very good and honest, too, but in a addition
he understood the science of wealth: Arthashastra. • Today we have another good man: Arvind Kejriwal.• Let’s hope he learns basic economics before it is too late.
Sanjeev Sabhlok. http://sabhlokcity.com/ 18 November 2012