Behavioral Economics: New Excuse for Government Tyranny

Chapter 2, Vol I of the Economic Survey of India 2018-19 begins with this title: Policy for Homo Sapiens, Not Homo Economicus: Leveraging the Behavioural Economics of “Nudge”. It starts with the following Sanskrit stanza: We cannot rely totally on rational thinking to gain information, as it is not without its bias. The following is […]

Modi’s Central Planning Folly

Modi government, since again coming to power with even bigger majority than in 2014, is centralizing the economy and the society at a rapid pace. It is bringing out one central plan after another one. It is trying to dictate every little thing that is going on in India. For example, apart from the flurry […]

Indian Businesses are Drowning in Debt

Indian businesses, especially the so-called ‘too big to fail’ ones, are drowning in debt and are failing one after another. Here is a list of few of these businesses: First, the IL&FS default and insolvency. Also, DHLF, another giant housing finance company, is also near default. Second, Baba Ramdev’s Patanjali is struggling hard with slower […]

Modi’s New Labor Reforms

In his second term, the Narendra Modi government is going to carry out some major labor reforms. These reforms aim to consolidate myriad of different labor legislation under four major labor codes. These codes are as following, The first Code talks about minimum wages for every worker, unorganised, and contract labourers in the organised sector. […]