India’s Narendra Modi government is busy centralizing all available resources in Delhi. Recent moves of taxing provident fun incomes is just another move in the direction of emptying our pockets. Resource hungry central government is making every move to centralize resources in its coffers so as to continue its spending spree. Even state governments are now complaining about central government deliberately weakening the state governments. I have been pointing out at this tendency of Modi government since long. Farm Bills are also one such move of weakening the state governments. This Totalitarianism will have very grim consequences for everyone including the central government as their every move will be counterproductive in the end because they go against the laws of nature.
This is a no win situation for the country because the more resources the centralizing state diverts to itself, the more it starves the productive sector of the economy of vital resources and, as a consequence, the more India becomes poor. And a poor Indian state is even more weaker internally as well as externally. Modi government is basically stabbing in its own back! But I know for politicians to think for anything long term is an impossibility; their eyes are fixated on the next election. They live by election and die by it. And to win that election they will ruin their own country that they are wanting to rule! This is why I said central government’s every move of centralizing resources in few hands is a counterproductive strategy. State officials sitting in Delhi are thinking that more resources in their hands means a powerful India. They all are heavily mistaken. They do not understand sound economics, history, politics or even the ancient wisdom of Vedic sages who warned the King of not getting power drunk. Anyone with little bit of knowledge of economics and history can see Modi government’s agenda is a self defeating one. Socialist central planning can never give us resources that we need to become a superpower or to lift billions of people out of poverty and misery. Socialism will always fail because of its inherent weaknesses like the lack of price and profit and loss system. It cannot solve the economic problem of what to produce, how to produce and for whom to produce? It can only waste precious resource. Only a capitalist free market economy, where there is no government intervention in the economy and society, can provide us those much needed resources.
State officials in India are forgetting that they are the ones who are living their lives like a parasite depending on the productive capacities of the rest of us taxpaying public in the private sector of the economy. And whenever the parasite tries to grow bigger than its host, it will also die with the host! And that is the fate of this Indian nation state. We are moving in the direction of internal break-up of the Indian nation state. The dark ages that will follow that break-up will bring us more freedom and progress finally.