Swarajya, July 8, 1961
In a-permit-licence-raj, often it may happen that some people get a larger share in the total income of the nation than before. Individual businessmen may not only have a feeling of increased prosperity but also entertain an illusion of improved national prosperity. But a larger share to some few, out of a total that is smaller than what it should be under a free economy, is not a ground for preferring a permit-licence-raj. A more even and equitable share in a larger total is what a just citizen should aspire to. Industrialists and others who flourish in the sunshine of the Congress Government ought to realize this.
The Congress Government is exploiting the universal desire for equality of opportunity, while incessantly maintaining gross inequality through its policy of permits, licenses and quotas. It is obvious that equality of opportunity issues out of the free market and open competition, and not out of favours got through party go-betweens. Heavy taxation is borne easily enough by the wealthy, because through higher prices it is all transferred to the poor consumers below, who bear all the weight of the direct as well as the indirect taxation.
In a-permit-licence-raj, often it may happen that some people get a larger share in the total income of the nation than before. Individual businessmen may not only have a feeling of increased prosperity but also entertain an illusion of improved national prosperity. But a larger share to some few, out of a total that is smaller than what it should be under a free economy, is not a ground for preferring a permit-licence-raj. A more even and equitable share in a larger total is what a just citizen should aspire to. Industrialists and others who flourish in the sunshine of the Congress Government ought to realize this. They should look at things as they move in their own affairs. If they do this, they can easily realize how energy and enthusiasm, and even brains, play with increased activity and produce more when there is individual interest than when that is ruled out.
What is true in the instances before their eyes is also true in the affairs of the nation, which are conducted beyond their ken. It is reprehensible selfishness to prefer a permit-licence regime to a free economy just because it happens to bring in, at the moment, more money to oneself. National economy and its ups and downs will ultimately react on individual affairs although there is a time lag in between.
Suppose the total earning of a community is Rs. 100, and out of this, forty persons get each Re. 1; the remaining Rs. 60 is available to be divided among the rest of the community. Suppose, instead, in a permit-licence-raj, eight favoured persons get each Rs. 5, and the remaining Rs. 60 is divided among the rest, eight persons feel that the economy has improved. But the main body of people see no difference. Again if the regulations are further tightened and six favoured individuals get Rs. 8 each; then the rich will have got richer, and the remaining Rs. 52 divided among the main body of the community will give each somewhat less than what they were getting before. This would be so even if the total earning were Rs. 105 instead of Rs. 100. This miniature picture gives the simple arithmetic of the phenomenon of increased national income, but the rich getting richer and poor poorer, in the economy laid down by the Congress Government. And if, as a result of loss of incentive, the total is reduced from Rs. 100 to Rs. 95, the fund for the general body would be only Rs. 47 and each of them would be getting definitely less than before, although each one of the favoured class would feel very well off and praise the regime.
All those whom materialist egoism has not made completely blind and deaf to what is going on around them can see how the good, though somewhat lazy, people of this land are being rapidly transformed by the policies of the Congress Government into a nation of busy intriguers, as Silvio Gesell warned long ago.
The Congress Government is exploiting the universal desire for equality of opportunity, while incessantly maintaining gross inequality through its policy of permits, licenses and quotas. It is obvious that equality of opportunity issues out of the free market and open competition, and not out of favours got through party go-betweens. The two-fold strength of the Congress Party is the immaturity of the electorate and the money support of the permit-license-quota holders to whom fat monopolies are granted. Heavy taxation is borne easily enough by the wealthy, because through higher prices it is all transferred to the poor consumers below, who bear all the weight of the direct as well as the indirect taxation.
It may take long for businessmen to realize that present money is not the most precious of their earthly possessions, and that their future is written on the wall if they pursue their present policy of making hay while the sun shines. Communism is marching forward, its chariot horses being the Congress policies of confiscation, undermining of fundamental freedoms, permits and licenses, and heavy taxation.
A little self-interest, the fear of losing some small present advantage for oneself, is enough to block the large general interest from one's view. Self-interest makes man apathetic about the growing evil of Statism even as a ragged umbrella is enough to hide the great sun and keep the heat off one's head. A couple of square inches of a fan near the eyes are enough to hide the whole world. So great is the power of something near to oneself to make people fail to realize or watch with unconcern a great public evil and allow it to grow unchallenged. It is easy enough to buy peace for oneself in some way and remain content while misrule, corruption and intolerable taxation are getting into an irremovable permanent condition of life in India.
