CONTRACT WITH INDIA
…our mission is to make India great by developing and promoting policies based on the principles of limited government, free markets, individual freedom and rights, equality of justice and individual responsibility…
LATEST POSTS
IN THE PRESS
INDIA’S NEW RULES ON HIRING
No relevant background for the job, no problem. India has set a precedent by being the first country to make it illegal for employers to ask for a candidate’s experience, track record, or background during an interview. Henceforth, all candidate names will be put in a box and a random draw will determine who gets hired. Of course, considerations will be given to caste to ensure that all castes have [...]
RAM MANDIR OR BABRI MASJID
Recently a friend of mine lost her mother. The 'chautha' meeting was atypical of a Hindu-family prayer meeting. There was a Muslim muezzin, a Sikh granthi, a Hindu bhajan singer and a Catholic priest, each of whom delivered a beautiful chant and sermon to honor the dead. It was the most heartwarming and beautiful prayer meeting I had ever been to. And it got me thinking: Where else in the [...]
HOW MODI CAN TRANSFORM INDIA -4
Dear Mr. Modi: In the first three parts of my letter to you, I argued that the principal cause for many of India’s problems was a big government that tries to do too many things as a result of which it ignores the things it should be doing. Eventually, the government does nothing well. This, unfortunately, has been the history of government in India. A small government that does a [...]
HOW MODI CAN TRANSFORM INDIA – 3
Dear Mr. Modi: (Part 3) In Part 1 of my letter, I analyzed four of your recent decisions to illustrate the sizeable expansion in the power of government under your administration. In Part 2, I outlined the primary reason for your recent policy failures: focusing entirely on the immediate visual effects of a policy but ignoring the unseen secondary costs. For example, when we account for unseen costs, we find [...]
HOW MODI CAN TRANSFORM INDIA –2
Dear Mr. Modi: ( Part 2) Over the last three years, we have been witness to a great increase in the power and reach of the state. Recent decisions of your government ( outlined in Part one of this letter ) are a dangerous display of the encroachment of state powers into the private economic domain. Many of your recent policy decisions have had no basis in economic theory or [...]
HOW MODI CAN TRANSFORM INDIA –1
Dear Mr. Modi: Your commitment to making India great is unquestionable. Your tireless promotion of Brand India is unparalleled in Indian politics. And your effort to run an honest government is commendable. Your energetic leadership and international appeal have brought India glory and investment capital. For that this country will owe you a debt of gratitude. But Sir, you came to power with the promise of being a transformational leader. [...]
GDP: AN ABSTRACT CONSTRUCT
We all want economic progress. But how should we measure economic progress? In last week’s newsletter, I used the analogy of a factory producing widgets to illustrate the concept of GDP. In simple terms, the GDP of a country measures the wealth being generated by its citizens. The larger the GDP, it is assumed, the healthier the economy. Gross Domestic Product or GDP has now become the standard measure of [...]
INDIA’S FALTERING ECONOMIC GROWTH
India’s GDP growth has declined now for four consecutive quarters. Total GDP ( Gross Domestic Product) has dropped almost 3.1% since the 4th quarter of 2016. Future GDP will likely get worse as the complete effects of demonetization play out. It is important to read GDP numbers with a grain of salt since they are subject to frequent revisions. In an economy like India, GDP numbers are notoriously hard to estimate [...]
WILL THE MARKET’S BULL RUN CONTINUE?
The Indian stock market has had a good run. Stock prices have more than doubled over the last ten years. How long will this bull run last? I spent fifteen years as a Global Investment Strategist and a Hedge Fund manager. Those long, fourteen hour days, pouring over copious amounts of data from dozens of asset classes and over twenty different markets will teach even a poor student like me [...]
RANKING INDIA AGAINST OTHER COUNTRIES
How does India stack up against other countries on attributes like economic freedom, ease of doing business, corruption, educational opportunities, environmental sensitivity, liberty, individual rights, and happiness etc.? Comparison of countries across a whole host of attributes has now become easier. There are about 170 global indices that provide easily understandable quantitative ratings of government activities and policies. These ratings have become an important tool for governments, voters, NGOs, civil liberty [...]