Life, Liberty & The Pursuit of Happiness

Brilliant Comments worth sharing...

by Reena Kapoor

We love to hear comments from readers and it makes blogging all the more interesting and worthwhile.  But every once in a while, someone posts a set of comments that takes the discussion to a new level.  Such comments were posted by Irfan Khwaja (a professor of philosophy, "best kind" objectivist and a dear friend) in response to Anurag's post on Slumdog Millionaire and the reactions the film evoked.  Irfan's comments are simply too insightful to remain in the comments section so I have pasted them below for your edification. Hope Irfan won't mind us borrowing his content. Here you go:

India's "Kelo" Imperils Private Property Rights

by Anurag Wadehra

The Indian Supreme Court recently dismissed a complaint against the local state government  of Andhra Pradesh for acquiring land for a private corporation [Andhra Pradesh Infrastructure Investment Corp.]. Echoing the alarming Kelo ruling of the U.S. Supreme Court, the Indian counterpart ruled that any project which brings foreign exchange and creates employment is for “public purpose”. This opens the door for more forceful land acquisitions by the Indian government often in cahoots with the large corporations.

While the Indian left has never been one to champion the sanctity of private property, this ruling will clearly empower them to slow globalization and industrialization. They only have to point to the extortion tactics of the industrialists who will now get the government to do their bidding. Instead these corporations should be buying the private property for their use directly from the current owners at market prices . The conflict behind this false dichotomy of "Farmer versus Factory" has now been legalized. Expect more public agitation in the years to come.

Fortunately, there are a few who see this issue clearly and understand its import. Here is an opinion in a leading Indian newspaper (Mint WSJ) that nails the issue:

A judge is not a socialist planner—he or she is not supposed to evaluate costs and benefits of a project, but to administer “rule of law” so that citizens’ legitimate expectations are met. Such a legal system was the foundation of the West’s rapid economic growth; India deserves nothing less.

How China Helps the U.S. Poor

by Anurag Wadehra

Conventional wisdom says globalization has increased US income inequality, and it is dead wrong. So claims the simple and direct article Champions of Equality by the University of Chicago economist Christian Broda. He lays out his thesis:

Cheap imports from China piped through low priced retailers like Walmart and Target have had a direct, positive economic impact on the poor in the United States: these have increased the purchasing power of the poor and buffered them from inflation.

He says: Inflation in [Chinese goods] sectors has been negative over the last decade, while in other sectors with no Chinese presence inflation has been over 20 percent.

He concludes with:

Every time the discussion over trade is diverted towards the problems facing specific producers, be they farmers in France or textile workers in the U.S., we miss the central point. Trading allows everyone, and especially the poor, to buy things that they could not otherwise afford. Without better public understanding of these facts, governments will not only keep supporting policies aimed against China and Wal-Mart but may receive the uninformed support of many consumers who are benefitting from trade.

As Milton Friedman and many others have noted, the silent majority that benefits from all this has no political constituency and no voice in the media. These facts stare at us but are drowned by the daily megaphones of the interventionist left and the protectionist right.