$700 billion bailout plan in US Vs. Farm Loan waiver in India

There was a hue and cry from the corporate world and business media about the farm loan waiver. I found it amusing then. It looks even more amusing now, in the wake of the $700 billion bailout plan (now aborted) in that, presumptive, most capitalist of capitalist countries, the US. There was a muted response to this plan in the mainstream media; most debates were about how best to finetune this plan. 

P.Sainath ridicules this plan, in The Hindu, contrasting these reactions against the earlier rage over the “historic farm loan waiver for $16 billion”. (Sainath belongs to those rare breed of journalists, who slog it out in the vast rural hinterland to unearth the real truths, while his more elitist counterparts hog the limelight with lazy-sleazy sting operations and Arushi sagas. His apparent Socialist leanings notwithstanding, it is the existence of honest contrarian-journalists like him, which will make democracy and ‘free markets’ work and evolve).

Whether we like it or not, for those of us who were waiting for the crash, the developments are interesting, to say the least. This is definitely a serious test for capitalism and at the end of it, hopefully, we will evolve to a higher, humane form of capitalism (or whatever new -ism) and not find recluse in retrograde initiatives. The real danger is not the impending recession or a repeat of the ‘Great Depression’ with ripples across the world, but a reactionary withdrawal of heads into an excessive-regulatory shell. A temporary recession, which doesn’t hinder future growth, is more welcome than a few more decades of decadent licence-raj.

Budget aftermath: Farmers versus corporates

Why is Chidambaram being accused by the corporate world of bowing down to the pressures of politics in announcing the waiver of loans to farmers? Yes, it is a political move. But how different is it from giving tax holidays to the industry. By not taxing sections of the industry but still investing in infrastructure, does the Government not dole out freebies to the industry also? The industry, which,  continously clamours for less taxes or no taxes, now cannot digest a similar gesture being made to the farmers. This reeks of collective selfishness.

The very foundation of democracy lies in the fact the politicians need to worry about winning elections and therefore bring about policies which will benefit a larger mass of people. This somewhat counterbalances the capitalist tilt towards merciless meritocracy. Capitalism is about survival (and prosperity) of the fittest. A capitalist democracy not only ensures survival of the fittest but also facilitates expanding the base of the fitness pyramid.

Loan waiver is indeed a short term measure but is a small step in the right direction towards a more inclusive growth.

Do Whites hate money when its colour is brown?

First came the Indian software and BPO industry. People in the west started getting worried about the work and money that was flowing into India. But more than these industries, the Whites are getting nervous about a challenge from an unexpected quarter – Cricket. Browsing through many articles by English and Australian writers, it is obvious that they are worried that the colour of money is turning brown.  A cursory glance will throw out headings like ‘Silly Money’, ‘I dont need IPL money’, which miserably fail to mask the contempt for the money earned by Indian cricketers.

There was a time when Indian cricketers yearned for county contracts. Now the English board and the Australian board are struggling to keep their players from moving to Indian shores due to the lure of money.

I hate the BCCI for its complete incompetence in managing the sport in the country. But they must be appreciated for unlocking the financial value of the game in India and storming the White bastion like nobody else before. They can even be forgiven for acting no different from Whites, when it comes to misuing the power bestowed upon them by money. Let India make the most of it, as long as it lasts and make it last as long as it can. White capitalists can continue to whine like Indian socialists on why so few are earning so much.

IPL is not the end. And this phenomenon is not going to be restricted to cricket. The colour of money is changing.

In search of satisfaction

Satisfaction has become the most elusive commodity for most people employed in high-paid white collar jobs. Companies have been spending millions of dollars on initiatives focused on retaining its employees or improving employee satisfaction scores, all to no avail.

What is the core of the issue? Is it because employees are underpaid? No, technology, sales and finance jobs were never more rewarding than now. Is it because employees are not given responsibilities? No, people take on massive responsibilities very early in their careers. Is it because there are overworked? Absolutely no, people are addicted to work and are willing to work non-stop when the need arises. On the contrary, most dissatisfaction stems up when they are underworked. Are bad bosses driving people crazy? No, many people are dissatisfied in spite of excellent rapport with their bosses.

Why then, these endless waves of exasperation? Why then, all this blogging and online community networking, while at work? Why then, the continuous monitoring of the clock, which seems to be ever so slow?

What is it that the modern day educated smart workers want? Did not our parents do the same monotonous jobs for ages without complaining (even if they did complain, without ever thinking of quiting at all)? My mother has been a cashier for 35 years and if she had earned a percent of what she has counted in all her life, I would never have had to work. Can’t we still see so many other people, not privileged to be so educated, toiling in their jobs without ever bothering to complain – like the traffic policeman, lift operator, cab driver, bus conductor and all others involved in hard physical labour? What makes our young educated generation so special that we are perpetualy dissatisfied?

If you were looking for well researched answers at the end of all my questions, I dont have any. If I believe in fate, I would have simply concluded that this generation of educated youth is doomed to be dissatisfied. I dont believe and I can only speculate about the answers.

One glaring aspect in modern corporate culture, is the complete lack of emotional attachment with the company. Companies which have managed to instill a sense of purpose, pride and emotional bonding have succeeded in creating a conducive environment for people to enjoy their work. Once I visited Taj Lake Palace at Udaipur and everyone there, from the receptionist to the sweeper, was wishing me and greeting me, with a broad natural smile, even when no supervisor was in sight.

Very few have managed to do this and most companies do not even attempt to create an emotionally charged workplace. They try to appease their employees by offering more money, better infrastructure, overseas trips and friendly policies without ever touching that emotional chord. I believe that this emotional vacuum is what sucks employees into the endless cycle of discontent. They quit and move to another place which offers them even more money, still better infrastructure or posts them abroad. The result is the same. The same vicious waves of dissatisfaction.

The next challenge to the capitalist society is not going to come from the proleteriat-bourgeoisie class divide (it is difficult to tell the difference between the two now) but from the inherent, seemingly purposeless discontent simmering among the educated youth.

Thank you,Mr. Tata, but where do I park my car

Mr.Pachori and Ms.Sunita Narain can scream on top of their voices about environmental pollution and global warming. I, the common man of India, don’t give a fig. I need a respectable means of transport and I am glad you thought about it, Mr.Tata. I thank you profusely for it.

I am tired of driving my scooter behind a stinking garbage truck blowing black CO2 on my face. I am tired and scared of driving with my kids and wife on a single bike in this unbelievable traffic. As you have rightly pointed out, it might rain anytime and I may not find a place to take shelter.

I am tired of hanging on the footboards of overcrowded buses and gasping for my breath in the hostile crowds of the local trains. And worse, I never know, when my pocket will be picked.

I am tired of haggling with the auto drivers over every extra penny that they demand or fleece through faulty meters.  

I will listen to the likes of Pachori when I see merit in what they say. I will gladly purchase a CFL lamp instead of a bulb, not just because it is environment friendly, but because it is a better product. It is brighter and cheaper in the long run. It makes sound economic sense. 

I am not going to listen to Mr.Pachori on this issue. When the whole world has been driving a car for years, I have rarely even got into a taxi. A car has been the collective dream of our family right from the time of my grandparents. When I am offered an opportunity to buy a car, I dont want to be denied the chance to realise my dream, with talks on global warming and environmental pollution. Where were all these arguments when Henry Ford made those gas guzzling black cars available to the then common man in America? 

I am all for your car Mr. Tata.  By my standards, it is still an expensive indulgence, but not entirely out of my reach. I will somehow manage to pool in my savings and take a loan and buy your car. I will somehow manage the extra outflow for fuel. Maybe I will use public transport more often and take out my car only when I really need it or go out with my family, to compensate for the additional expense (this must be music to Mr.Pachori’s ears). 

But Mr.Tata, I have only one apprehension. I stay deep down in a narrow gully – my bike just about squeezes through. Where do I park my car? 

Waiting for the crash

A novice in the stock market finds the easiest way to survive – by not investing ever, perennialy waiting for the impending crash. Even as his savings gather rust in a savings bank account, the risk-averse individual firmly believes he will be fully prepared to take advantage of the market when it ebbs to the lowest level.

When the market is rising, he is scared. Well, how long will this last. Even as the bulls are making merry and money, our man can only wait to see if these levels can be sustained. The prices keep soaring, soaring to a point of seemingly no-return. He still waits, ruing over the lower prices he missed, for gravity to take effect.

When the market crashes, he waits for the crash to be complete. The negativity in the market scares him. He thinks the bottom has not been breached and waits. It is not long, before the tide reverses again. The perpetual investor-in-waiting invariably misses to ride the tide again.

Well, the only comforting thought is that he has never lost money, never mind if he has never made any.