May 22, 2015
https://www.facebook.com/mehtarahulc/posts/10152787209671922
https://www.facebook.com/mehtarahulc/posts/10152787209671922
Adding capital to economy vs reducing inefficiencies by improving courts / administration --- why SoMoKe's remedies to Indian economy will never enable to survive coming war against china / USA .
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Consider two countries at the beginning of the year. Both will start with whatever capital it has and can get from inner / outer sources.
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At the year end, % additions they do will depend on how low the inefficiencies / corruption / nexuses / nepotism of their courts / administration was. The nation which has less inefficient courts / administration and less corrupt courts / administration will add higher % to its capital. And it will also make better goods , more goods, better weapons and more weapons. Finally, it may happen that gap between inefficiencies and corruption and nexuses is so wide that nation with far far less capital may be able to add much more capital.
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The capital can be sometimes intellectual capital. eg between 1400 AD and 1600 AD , UK added a huge intellectual capital to its economy ---- information and skills to use better alloys to make better cannons !!! Its cannons were stronger and lighter, and that enabled UK to win many many wars !!!
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Between 1000 AD and 1750 AD, UK had far far less capital than India. In fact, in 1000 AD, per capita income of UK was a small fraction of India. But in 1000 AD and later, UK brough vast changes in its court and administration. eg courts were run less by judges and more by Juries. The king was heridatary but elected PM had more powers than kings. By 1840, the school administrators were directly elected by citizens !!! All these changes in administration and courts made UK's economy far far less inefficienct than Indian economy. By 1750 AD , UK had added huge amount of weapons, and far better quality of weapons in its economy, which later enabled UK to defeat all Indians kings.
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And later, USA took courts / administration to a new height. Over 40 district / state / federal officials are DIRECTLY elected by citizens and all officials at district / state levels are recallable. Courts use more Juries and judges and referendum are commonplace. So USA which is 5% of world's population adds more intellectual capital to to world than rest of the world put togather and multiplied by 5 !!!
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So the nation which is adding less capital has now two choices ----- add more capital by borrowing or external investments or using inner sources OR reduce inefficiencies / corruption / nexuses / nepotism in its courts and administration.
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There are several historical examples.
.
.
Consider two countries at the beginning of the year. Both will start with whatever capital it has and can get from inner / outer sources.
.
At the year end, % additions they do will depend on how low the inefficiencies / corruption / nexuses / nepotism of their courts / administration was. The nation which has less inefficient courts / administration and less corrupt courts / administration will add higher % to its capital. And it will also make better goods , more goods, better weapons and more weapons. Finally, it may happen that gap between inefficiencies and corruption and nexuses is so wide that nation with far far less capital may be able to add much more capital.
.
The capital can be sometimes intellectual capital. eg between 1400 AD and 1600 AD , UK added a huge intellectual capital to its economy ---- information and skills to use better alloys to make better cannons !!! Its cannons were stronger and lighter, and that enabled UK to win many many wars !!!
.
Between 1000 AD and 1750 AD, UK had far far less capital than India. In fact, in 1000 AD, per capita income of UK was a small fraction of India. But in 1000 AD and later, UK brough vast changes in its court and administration. eg courts were run less by judges and more by Juries. The king was heridatary but elected PM had more powers than kings. By 1840, the school administrators were directly elected by citizens !!! All these changes in administration and courts made UK's economy far far less inefficienct than Indian economy. By 1750 AD , UK had added huge amount of weapons, and far better quality of weapons in its economy, which later enabled UK to defeat all Indians kings.
.
And later, USA took courts / administration to a new height. Over 40 district / state / federal officials are DIRECTLY elected by citizens and all officials at district / state levels are recallable. Courts use more Juries and judges and referendum are commonplace. So USA which is 5% of world's population adds more intellectual capital to to world than rest of the world put togather and multiplied by 5 !!!
.
===
.
So the nation which is adding less capital has now two choices ----- add more capital by borrowing or external investments or using inner sources OR reduce inefficiencies / corruption / nexuses / nepotism in its courts and administration.
.
There are several historical examples.
.
And here where SoMoKe-approach and RRG-approach differ and are diametrically opposite,.
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SoMoKe only want to focus on getting more and more and more capital. It can be via FDI or FII or external debt or internal debt or forcing temples to give gold or using fraudulent promises like interest on gold and so forth !!! But at the end of the day , SoMoKe ONLY talk about getting more and more capital into economy. SoMoKe have opposed law-drafts needed to reduce inefficiencies / corruption / nexuses / nepotism etc in courts and administration. And SoMoKe have all systematically killed movements to reduce inefficiencies / corruption / nexuses / nepotism in courts and administration. And they only want to focus on getting capital.
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RRG-approach is diametrically opposite. There is NO need for external capital --- we have enough capital inside India. And IMO , there is NO need to force temples to give their gold to SBI. IMO , we need to remove govt control over temples and IMO we also need to impose taxes on temples' wealth (and wealth of churches and mosques and gurudwara and ALL religious trusts and ALL non religious trusts), but IMO there is NO need to force them to give their gold to SBI.
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IMO, we ONLY need to focus on printing law-drafts that will reduce inefficiencies / corruption / nepotism / nexuses inside courts / judges / IAS / IPS / administration etc . And we need to remove taxes like GST , VAT , service tax, excise , sales tax, CST etc and instead focus on income tax and (wealth tax minus income tax paid minus 15% of salaries paid minus other deductions ).
.
So finally , activists need to decide whether they want to follow SoMoKe's way of "get more FDI and temple gold and do nothing to reduce corruption / nepotism / nexuses in courts / IAS / IPS " approach or whether they want to work on RRG-approach of " no need of external capital or temple gold BUT work to reduce inefficiencies / corruption / nepotism / nexuses in courts / administration".
.
IMO, if activists decide to work for SoMoKe's approach, then there will be huge capital additions but all will go down the drain due to rampant nexuses / nepotism etc in courts / IAS / IPS / administration. And finally, whole country will have to be handed over to foreigners to run and administer.Because problem of India was NEVER low capital, but problem was poor courts and poor administration. There is NO need to inject capital.
.
rest, each activist can decide on his own
.
SoMoKe only want to focus on getting more and more and more capital. It can be via FDI or FII or external debt or internal debt or forcing temples to give gold or using fraudulent promises like interest on gold and so forth !!! But at the end of the day , SoMoKe ONLY talk about getting more and more capital into economy. SoMoKe have opposed law-drafts needed to reduce inefficiencies / corruption / nexuses / nepotism etc in courts and administration. And SoMoKe have all systematically killed movements to reduce inefficiencies / corruption / nexuses / nepotism in courts and administration. And they only want to focus on getting capital.
.
RRG-approach is diametrically opposite. There is NO need for external capital --- we have enough capital inside India. And IMO , there is NO need to force temples to give their gold to SBI. IMO , we need to remove govt control over temples and IMO we also need to impose taxes on temples' wealth (and wealth of churches and mosques and gurudwara and ALL religious trusts and ALL non religious trusts), but IMO there is NO need to force them to give their gold to SBI.
.
IMO, we ONLY need to focus on printing law-drafts that will reduce inefficiencies / corruption / nepotism / nexuses inside courts / judges / IAS / IPS / administration etc . And we need to remove taxes like GST , VAT , service tax, excise , sales tax, CST etc and instead focus on income tax and (wealth tax minus income tax paid minus 15% of salaries paid minus other deductions ).
.
So finally , activists need to decide whether they want to follow SoMoKe's way of "get more FDI and temple gold and do nothing to reduce corruption / nepotism / nexuses in courts / IAS / IPS " approach or whether they want to work on RRG-approach of " no need of external capital or temple gold BUT work to reduce inefficiencies / corruption / nepotism / nexuses in courts / administration".
.
IMO, if activists decide to work for SoMoKe's approach, then there will be huge capital additions but all will go down the drain due to rampant nexuses / nepotism etc in courts / IAS / IPS / administration. And finally, whole country will have to be handed over to foreigners to run and administer.Because problem of India was NEVER low capital, but problem was poor courts and poor administration. There is NO need to inject capital.
.
rest, each activist can decide on his own
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