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Economic Policy - Questions

Administrative Note:

Week's Agenda: Economy

Is convertibility good or bad? Surely, when money flows for genuine
trade, it is beneficial but when it flows for speculation it is extremely
dangerous. So should we have controls. The SE Asian crisis itself is 
a result of speculation.

Are trade cycles inevitable? Can it be spread out by giving incentives
to different sectors in different years? Does a very high growth rate
(say 13%) necessarily mean it will be followed by cruel lows? Of 
course, controlling must not increase unemployment.

Why should we be bothered about the small investor in capital
markets. I keep hearing and reading about it often. I don't think we
should rely on the small investor to boost the economy. Even if we
create a climate for them to invest, there is no guarantee that it
will attract them, especially with the "safety first" attitude in india.

Since Labour=Capital, free flow of capital must be accompanied by
free flow of labour. so our workers (not just the white collar ones)
must be allowed to take up jobs in Western countries. I don't care
if the western people lose their jobs.

Allowing qualified professionals but not unskilled labour smacks of
the same logic of "we want computer chips but not potato chips".

Continuing on the same lines, since finance companies don't come in
with an exact plan to invest but invest AFTER setting shop, by the
same logic, workers without a job should be allowed in USA and other
western countries and then look for a job. ( The analogy is that 
the worker speculates that he or she will get a job just as the finance
companies speculate in the stock markets after they come in )

Just as we are asked not to subsidise certain goods, other countries
must not subsidise healthcare. Let them compete with indian rates.
Canada has free healthcare. This eats into indian medical business!

There must be one anti trust law for the whole world. If an American
company gets too big for india, an indian company should be able to
bring up this point before WTO.

In other words, there is a lot of scope to turn the tables on the 
western countries. we should press for these things to be included
in WTO. even if they are not implemented, these are good 
bargaining points.

Please comment.


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