The Congress seems to be taking a total about-turn from the liberal economic model of 1991 to the disastrous Nehruvian socialist economic model. In fact, it is turning more leftist than even the Left. While there is a lot of controversy around the open espousal of minoritysm in Congress’ manifesto, the more disastrous aspect of its proposed economic policy has been overlooked by most politicians and critics.
Maybe the Congress has realised that it has no chance of coming to power in the coming decade, so the party is using elections to fan ideas that have failed the world and led to the killing of millions by Communists for doubting their prescriptions of abolishing private property and privacy and took control of every resource. We cannot forget millions who perished in Communist-created famine in “Great Leap Forward” and died again in “The Cultural Revolution”. Nor can we forget the Gulag Archipelago, immortalised by Alexendra Solzhenitsyn. Human beings work for self and family. People feel secure when they have the right to property. This was recognised by most dumb-headed Leftists, not just Communists.
The USSR and China Communist debacle was finally accepted by its leaders Gorbachev and Deng respectively, and Communism was buried for good. The Congress believes that youth and rural folks do not read history or they are still reading the doctored history established by its Left friends. Entire East Europe under the military boots of the USSR was lowest on all economic parameters till the collapse of Communism.
In recent times, Venezuela is the prime example of well-meaning socialist ideas taking a once prosperous country down the tube. The ongoing socio-economic and political crisis began under Hugo Chavez and continued under Maduro with runaway inflation, hunger and disorder; resulting in massive outward migration from Venezuela.
Remember it began with state largesse to people and neighbouring countries based on income from natural resources, namely, oil. One can say that the wealth came from natural abundance, not from industrial growth or commerce. Still, the end result of unthought-of welfarism has led to this collapse.
Imagine when you are working with scarce resources, your growth is based on manufacturing and commerce. Just as you are ready to take off to the next orbit, the government decides to take away wealth from the creators and the innovators.
Rahul Gandhi talks about ‘surveys’ to decide on re-distribution of wealth. The finance ministry has all the data required to know who has the wealth, so why does he need surveys? Is it ill-gotten wealth? Is it not accumulated with legal means and hard work of the owner of that wealth? These industrialists worked within the policy framework laid out by various governments. Can someone go back on laws and take away that wealth? It is like a retrospective tax tool that the Congress government used against Vodafone and destabilised the telecom sector. Recall the same group of people had shouted hoarse when GST was proposed for gaming companies.
How will our proposed Robin Hood redistribute the wealth confiscated from the industrialists and businessmen? How can a business person work if he/she fears take over by the government? The Air India debacle is too recent to be forgotten. It was almost finished after nationalisation before it was handed back to the private sector, sucked to the bones by politicians and bureaucrats. Redistribution has not worked in any society. What is the mechanism the Congress has in mind? You cannot terrorise people with such loose talk and create uncertainty about your economy globally.
Welfarism of Europe is pulling down its economy as its population is ageing. There are much lesser earners than the welfare recipients. We are a young country with a very large population. From where do we generate resources for such welfarism outlined by the Congress? One lac per annum apprenticeship for the unemployed youth. One lac per annum for every poor family. A kind of MNREGA in urban areas with guaranteed jobs. There is no idea how it will be done. My own experience is, and you can ask any industrialist, that a major chunk of unemployment in cities is out of choice. Every job-seeker is looking out for a job of his/her liking, not what the industry offers. Ask any employer, shortage of the right skills is the issue in urban centres, not jobs. Will the Congress reward such unemployed-by-choice people doles? I am not an econometrician, I don’t have ready figures. I think even the Congress does not have. But from the figures being quoted in media, this could be anywhere around 20-25 per cent of the current budget. And I am being conservative! From where will the money come?
The Congress talks of 50 per cent of government jobs for women, claiming women’s participation is a paltry 25 per cent. Incidentally, according to a World Bank report, it is 30 per cent now from 29 per cent in the UPA era where it had fallen from 32 per cent of the NDA-1 era. Leaving wrong figures aside, how does the Congress hope to go about it? It did not help NDA-1 to pass the bill by opposing it. It has no plans for the skill enhancement of women. It could not get the bill for 33 per cent reservation for women passed in its 10 years in UPA. In panchayats and municipalities, husbands still rule through their wives or sisters. How will they make them ready for jobs in the 21st century? There is no plan.
The Congress proposes a single moderate GST across the board. Should life’s necessities be taxed at the same rate as luxury products? Congress ministers are also part of the GST Council, have they ever proposed a better GST structure? I could quarrel with GST differential rates, but I am sure that it cannot be the same for all products. Naturally, the Congress is thinking of lower rates. What will happen to collections?
The party talks of a new direct code. Since it wishes to ‘redistribute’ wealth, we can only assume that there will be higher taxes on higher incomes, because we are, luckily, not a communist state where the military will walk in to throw you out of your homes or factories. We tried a very high tax regime during Indira Gandhi times. It only pushed money further into the ‘black’ or informal economy. There was no growth in direct tax revenues. Revenues increased when tax rates were reduced. So, where is the magic wand, Mr Robin Hood, that will help fulfil your fancy idea of wealth redistribution? Will you run a Vinoba Bhave-style Bhoodan movement? Or will it be the forceful takeover of healthy enterprises, Nehru and Indira Gandhi style? Remember, we had to mortgage our gold reserves to the Bank of England after the profligacy of the Rajiv Gandhi government. We were nearly bankrupt when Narasimha Rao had to liberalise the economy under World Bank diktat. And then we saw the elephant dance.
On one side, Rahul Gandhi is planning to pull down the economy with grandiose welfarism without clear plans to increase revenue pie, on the other he wishes to double the Indian GDP in ten years. Can a Robinhood economy grow at that rate? While the Modi government claims it will double the GDP by 2029 based on its record of the last 10 years, the Congress wishes to slow down the velocity of this target down to half.
Bharat has suffered enough due to the misplaced misadventures of Congress from the Nehru era to Indira Gandhi and Rajiv Gandhi era. Let us move on and never look back. Bharat of 2024 cannot be governed by 1960-70 era socialist policies. Keep away, Mr Robin Hood, let the elephant dance.
The writer is a well-known author and political commentator. He has written several books on RSS like RSS360, Sangh & Swaraj, RSS: Evolution from an Organisation to a Movement, Conflict Resolution – The RSS Way, and done a PhD on RSS. Views expressed in the above piece are personal and solely those of the author. They do not necessarily reflect News18’s views.
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