Friday, May 28, 2010

The State by, of and for the Elite

This book could easily go un-noticed until one stumbles upon its descriptive second title i.e., how the wealthy use the government to stay rich and get richer? It is a brutal truth that manifests itself in the manner in which governments increasingly work under the influence of corporations. There is conspicuous similarity in which the state has been appropriated by the wealthy, be they conservatives or the liberals.
Drawing parallel between conservatives and liberals, economist Dean Baker contends that it is a myth that conservatives trusts the market and liberals want the government. Conversely, many of the key forms of corporate welfare involve not just the handout of public funds, but interventions in the economy to benefit corporations. How true is the formulation in the Indian context where divergent political ideologies have demonstrated remarkable consistency in favoring the rich?
Not without reason Bill Gates has become incredibly rich. Thanks to state-granted copyright monopoly, all doors of copying were closed on Windows. Any number of examples exists where corporations are completely dependent for their profits on the nanny state's protection from competition. No wonder, the country that is riding the crest of the economy wave has a sizeable populace fighting to just stay afloat!
The poor would be worse off if the rich continue to actively use the power of the government to shape market outcomes in ways that redistribute income upward. There are reasons for doctors to draw higher wages - to force everyone in the country pay more for health care. Salaries of the top executives have soared in recent years at the cost of wage stagnation of ordinary workers. Simply put, the nanny state is increasingly favoring the wealthy.
Through incisive economic insights, Baker argues that it's time for the rules to change. Unless economic policy harnesses the market in ways that produces desirable social outcome, the brewing social discontent will give a severe jolt to the nanny state.....Link
The Conservative Nanny State by Dean Baker,
Center for Economic & Policy Research,
Washington, 113 pages, $ 7.90

No comments:

Post a Comment