A Victory for Capitalism

Indian PMGreat news just happened right under my nose. India had an election that was supposed to be close. It wasn’t. The centrist alliance won 262 seats while the right-of-center parties won 158, as opposed to the leftist bloc, which only won 76. The result? India’s stock exchange had to be stopped because it was increasing too fast. It had to be shut down for the rest of the day! I wouldn’t be surprised if it happened again tomorrow. The Indians have been enjoying an incredible rise in wealth thanks to free market policies, and today they asked for more. This happened in the middle of a huge recession that likely hit India even harder than it hit us. That’s the most fastening and exciting part of this. Recessions, especially large recessions, traditionally cause a knee-jerk leftward reaction of protectionism and government intervention. That’s what happening elsewhere, but not in India. This is a great boost to my optimism.

India is interesting to me, because I think it’s a lot like America, but closer to our original idea. They have states, but they vary from each other far more than our own. They have true communist parties, and you can see the economic effect in the states that favor these parties. In India’s parliamentary system, there is a lot more incentive to vote for the party you most agree with. I prefer the stability of our two party system, but I would like to see more experimentation in our own states.  By the way, nationally, the communist parties lost over half their seats.  Good news all around for those of us who believe in the far-reaching wealth creation and extended freedoms of capitalism.


2 Responses to “A Victory for Capitalism”

  1. mikehinton Says:

    This is a reply I received in an email from my good friend Rakesh from grad school who is an Indian citizen and has political ambitions:

    Hey Mike,

    I read your blog and I am myself surprised and happy with the election results. The simple fact that [the] left is reduced to 24 seats in the parliament from 61 makes me feel happy that India is moving in right direction and i think the markets hitting circuit breaker within hours of opening reflects that the whole country is very happy with the idea and this is probably a better way of solving the current global economic crisis.

    This is worst poll debacle for left parties in 40 years and I am excited with this. I think the existence of left parties as an alternative is fine and finally it is the people who choose their party, but as far as I am concerned I prefer the idea that left parties in India should never have enough seats in the parliament to effect the government decisions but with a few seats it makes the debates interesting.

    I hope that in near future this will continue and it will be right time for me to join politics 🙂

    Rakesh P Tiwari.

  2. Mark P Neyer Says:

    Great note. Also, just a heads up, you spelled ‘capitalism’ wrong.

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