ECONOMIC NOTES

The Inhumanity Engendered by Capitalism

GEORG Lukacs, the renowned Marxist philosopher had once remarked that “even the worst socialism was better than the best capitalism”. That remark made in 1969 and repeated in 1971, no doubt on the basis of Lukacs’ perception of actually existing socialism in the Soviet Union and Eastern Europe with which he was familiar, had been treated sceptically even in Western Left circles at the time.

A Budget of Great Cynicism

NO budget in post-independence India had been as openly cynical about the lives of the vast masses of the working people as the one presented on February 1, 2025. All pundits, from the finance minister downwards, agree that the strategy of the budget is to stimulate the economy by boosting middle class consumption through tax-cuts.

The Dangers of Centralisation

WELL-known Marxist scholar, the late Amalendu Guha, had argued persuasively that in modern India there co-existed in the minds of the people a dual national consciousness: a local, regional-linguistic nationality consciousness, of being a Bengali, or a Tamil, or a Gujarati or an Odiya; and also simultaneously an overarching pan-Indian consciousness. This duality, he had argued, had to be cognized and accepted; an over-emphasis on either one to the exclusion of the other would produce a dangerous reaction.

Economic Response to US Imperialism

THE imperialist countries led by the US have been imposing unilateral sanctions that do not have any backing from the United Nations against countries that dare to defy their diktat. According to one estimate almost one third of the countries of the world have been subject to such sanctions at one time or another. Such sanctions include the freezing of those assets of the sanctioned countries that are held in western financial institutions, as has been the case with Iran, Cuba, and North Korea among others earlier, and with Russia most recently.

“GDP-NATIONALISM”

LIBERAL opinion is invariably opposed to “nationalism”. It treats “nationalism” as a homogeneous term that necessarily entails a non-friendly, non-accommodative and rivalrous attitude towards other countries. This view however is completely erroneous; anti-colonial third world nationalism is entirely different from the nationalism that developed in Europe in the seventeenth century following the Westphalian Peace Treaties.

Trump’s Threat of a Tariff Wall

DONALD Trump is threatening to use tariffs as a weapon against other countries. He has already made three threatening statements: first, he threatened the BRICS countries that if they dared to move away from the dollar, then they would have to face 100 per cent tariff in the US market. Second, he has threatened the European Union that unless the EU bought more American oil and gas as a means of reducing its trade surplus vis-à-vis the US (the surplus on goods trade was $208.7 billion in 2023), it would face high tariffs in the US market.

Disempowering the People

THE aim of all fascistic governments is to disempower the people; and the Modi government is no exception. The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) which promised one member in every rural household a maximum of 100 days of employment per year was a demand-driven scheme. In a limited sense therefore it gave people a right to employment, not to everyone and not for as many days as a person wanted; but a right nonetheless.

The Hegemony of the Dollar

LIBERAL opinion holds that the international monetary and financial system is a device for promoting the interests of all participating countries by providing a convenient payments arrangement within which trade can be carried on. The reality however is altogether different: the international system is founded upon the hegemony of western imperialism, and in turn sustains this hegemony.

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