Capitalism socialism and joint family

First socialist:

Robin hood also known as Prince of thieves was it classic socialist. Robin would rob rich to distribute among the poor. Socialism works similarly. Tax the rich and subsidize the poor.

Industrialist and arms dealer:

Human beings evolved from a primitive community of hunters and gatherers. When hunter decided that instead of going for hunt it will sharpen the old tools and create new tools which would then be exchanged for the hunt carried out by others. This was the birth of the first industrialist as also the first arms dealer in the world.


When hunter decided to accumulate the dried skins of animals and other fruits which could be dried and stored, the capitalism was born.

So long the capitalist kept most of its speculation in circulation there was no problem but when it decided to become a hoarder, it invited the wrath of Robin hood.

Modern society:

The aforesaid cycle continues in the present day as well. So long the tax on people is reasonable they pay to the government. A government however is free to distribute subsidies for the poor.

A capitalist which keeps its wealth invested in the society in the form of businesses is generally much more protected then a capitalist who becomes hoarder invest in huge palaces, gems and jewellery and ugly display of wealth is generally not very popular in society.

To the last part search for the largest wedding which was hosted by politician J Jayalalitha and still is a Guinness book record holder. But she lost her next election. Similar was the fate of another Indian politician, Mayawati and her famous birthday bash after which she never recovered her political ground.

The last too were not capitalists but one was like stationary thief (10% cut) and other is like bandit (hoard as much as possible) politician. But the principle remains same.

Socialism in India:

Socialism means popularism. In practical terms it means giving subsidies and seeking votes. Then raise taxes to meet the subsidies. It is never enough. The cycle continues till a country becomes broke like Vanezuela.

Historically India was never a socialist country. It was the land of entrepreneurs and exporters for thousands of years. The British imposed various trade restrictions to benefit their own industries in England or elsewhere. When they left in 1947, India was still globally integrated economy but Nehru’s fascination for socialism and on persuasion of the elite Bombay club, he kept economy closed. He loved to pass laws without bothering about enforcement. See this picture and read the warning in picture:

His daughter Indira split the party and cared little for ideology. She ended up in tying up with communists. Indira nationalised oil, coal, banking, air lines and what not. Evan cornflake factory (Ganesh Flour Mills) was also nationalised. Income tax was raised to 97.5%. The result was that ormal businesses went underground. Every business was now contraband in one way or the other.

From 1970 to 1990, India was what today is North Korea. Socialism had arrived India in full form with an evil queen presiding over it. Businesses fled India so did technocrats. This exodus formed the basis of overseas Indian diaspora. No country other than India has so many people living abroad.

The situation was reversed in 1991 when taxes were lowered and economy was opened up. There was no looking back to that dark past.

However those born in that era are so thoroughly brainwashed get they still advocate socialism or even communism. This brainwashed generation is opposed to disinvestment and sale of Government companies engaged in commercial enterprise. But more about that at some other time.

Joint family:

Family is the smallest political unit of the state. Societies which do not appreciate the family unit, suffer not only socially but also economically. Europe is experiencing it, so does USA.

India has a long tradition of joint families. This is the first time in history when four generations can be found living together, eating and dining together.

At the same time disintegration of joint families is also happening at a fast pace. Rise of nuclear families is bringing in many problems which did not exist earlier. The nuclear families often do not grow to become joint because they lack the traditions which kept families together.

In joint families, as children grow, the parents reduce the parental control which is gradually eliminated altogether. Helicopter parenting in which parents keep on hovering over a child in all his or her affairs completely cease once child enters into adult hood or marriage.

Of course boundaries are drawn and rules are framed but the little remaining parenting is left to immediate parent. Grandparents play the role of supporting counsellor to pacify the warring factions and to step in to resolve the disputes.

Mai baap Sarkar:

Helicopter parenting is called “mai baap Sarkar” in Hindi. It is a completely dictatorial regime which governs what to read, what to think what to eat and what not. Nehru colony was a mai baap sarkar.

No wonder that Nehru was impressed by King Ashok who was the most oppressive native ruler of India. Those who think Ashok was great should read English translation of Ashokvadana which is his historical accounts discovered in Sri Lanka.

Why Robin hood fails:

There is a saying in economics that if all the wealth of all the wealthy people is taken away and distributed among the poor people, the wealth will revert to its earlier owners in a short time. How is that even possible?

The people who have wealth are investors who accumulated and invested properly to generate wealth. The poor people who spend all money, are consumers. They do not know how to invest. Therefore when they get the wealth they consume and splurge. They are not in the habit of investing. Therefore they are unable to hold on to it.

Investing is not as simple as going out and buying something. Investment is a long term decision which entails that the investment will remain good in the long run.

The tradition of investing wisely is part of the traditional joint families. No wonder that countries like Japan, China in India rank high in terms of per capita saving.

Who are you? A consumer or an investor? Socialist or Capitalist?

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