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He is a basket case in economics and banking. He wants the whole Indians to be employed in the low skilled service sector like security, home maid, cleaner etc...and he presumes all the 5 % high income will employ the rest of India. Raghu is in Fools paradise 🤣
Rags is an economic ideologue, plain and simple. He was my lecturer at U of C, so I’m fairly certain about this. He is stuck in a neoliberal bubble of theoretical nonsense.
Most manufacturing countries are going to be capped with their growth.. mark this comment. You need service companies (cloud capital) look at china… they are pivoting..
@kaustubh1969 they've made a solid base to absorb their population and make real productive goods which allows service sectors to service. We don't have a solid foundation unless we have some self sufficiency in manufacturing
@@kaustubh1969 service occupations will be the future for most in the coming years of fully automated production and manufacturing. But the objections you are reading relate to the QUALITY of such jobs rather than their type (service in domestic situations is NOT service designing new AI solutions for manufacturing, transportation, medicine and so on).
Raghuram Rajan is saying India should focus on just focus on importing manufactured finished goods while just servicing the local economy and going back to the stone age. High skilled exports are basically skilled indians leaving India.
Following rhetoric Prof. Rajan brought communist revolution, violence and blood shed while denouncing wealth and inheritance tax. But, how easily he forgets that the history of capitalism or the success of capitalism rests on colonialism, loot, war and violence of much higher degree. Hypocrisy of the people belonging to such ilk is unique. Even if we accept that such taxes would bring a pittance but the question is by which logic inherited wealth can be treated as sign of efficiency for the person who doesn't earn it rather inherits by the virtue of his/her birth . Remember these are fellows who oppose subsidies by arguing that it is market distortion. Prof. Rajan is that fellow who advised openly to make agriculture less profitable so that other sectors can get cheap labour. Unfortunately when the pandemic exposed the plight of millions of migrant workers who didn't even have savings to bear necessary expenditure for a week, these experts didn't repent for their wrong prescription. Surprisingly, some people still consider them as experts but to me they are nothing but good plagiarists at best who would copy some thing( same size fits all mono-economics) from their mainstream bosses of economics and paste them in a country like us without considering the reality of our country.
Rajan is daft on history. The communist revolution in Russia took a backward empire from the “sick man of Europe” to the most advanced economy in Europe and second biggest economy in the world in the space of 4 decades. In that period, it took out some time to crush fascism while fighting imperialist countries which embargoed it to stop its rise. It also beat the USA in the space race, no mean feat. Rags Rajan is basically a historical illiterate and should have been called out as such. Meanwhile, the second communist revolution, the Chinese communist revolution, replicated and improved on the record of the first communist revolution; pulling the most amount of human beings out of poverty in a generation. A record never achieved by any capitalist system. Rags Rajan needs to go back to school to get a history education.
@@Abhishek-tf2voRussia is out producing west in terms of artillery shells. Russia has successfully jammed western jdams, himars , excalibur shells, foooled billion dollar patriots missile defense system 😂😂😂😂
One hurdle in moving people from agriculture to service sector is about society's perception. Many often associate shifting from agriculture to blue collar factory job with increase in status whereas someone leaving agriculture to work as domestic help or as an office peon or a security guard is looked down upon in their society.
Dr. Rajan has a good point about the avenues/ leverages the rich do have to avoid paying their fair share of taxes. That includes controlling the politicians and effectively MAKING LAWS to serve themselves. A good example of that is America, where ONE PERCENT of its population controls most of the national wealth. Without contribution from the wealthy, there is little money in the public coffer in America to keep its infrastructure in decent shape. Anger amount the general public is palpable.. Is that a society Dr. Rajan wants for India?
Wealth tax is a red herring. The same objective can be achieved more simply by winding back the massive income tax concessions for the wealthy and on capital, by increasing corporate tax, and by closing the tax loopholes, and Rajan has said just this.
This interview was one of the best and one which took courage given Rajan’s nominally impressive credentials and lengthy c.v. Of course, such men and women are bucket list markers in life and thus usually follow ambition rather than the timeless - nay, eternal - values of total freedom and independence. Nevertheless, Mr. Rajan seemed rather subdued and careful to appear as “fair and open” as his obvious neoliberal sentiments will allow. I believe he wants to do well by his homeland but seems trapped in an ideological cage. But perhaps he will yet escape the bars of doctrinal imprisonment. Still, credit to the podcast crew and Professor Rajan for making an appearance and providing much needed information on recent events on the Indian subcontinent.
India needs to tax agricultural income. Biggest tax evasion is happening in agriculture where 100% tax exemption exists. Lot of rich, farmer politicians, are accumulating money, and then hand out freebies, when in power to act like messiah.
Good discussion. Raghuram Rajan has a good knowledge of where India stands and has put forth a few policy suggestions for the country's political leaders and bureaucrats to consider. I'm surprised that in the whole discussion not once the topics of the status of the environment and India's preparedness on climate change came up. A country's future is not all about its economy, jobs, roads, education and health. It's not just about how the country is preparing to capitalise on the global opportunities on the economic front. It should also include issues such as how the country is prepared to tackle some of the serious risks the country is likely to face in future, especially on the environment front and climate change. It should include such issues as how the country is going to tackle the growing air pollution and water pollution, how the country is going to address rapidly depleting ground water levels, how the country is preparing to ensure adequate fresh water supply to a growing population if monsoons fail, summer temperatures keep rising and large scale flooding occurs more frequently in urban areas. It's also about what risk analysis the central, state and local governments are doing and allocation of adequate resources in infrastructure development like emergency shelters, establishment of timely weather warning systems, and educating the population in disaster preparedness. It's better to spend money on reducing the air pollution than spending money on health problems created by air pollution. It's better to spend money on educating people in flood preparation rather than spending large sums of money year after year as flood relief. It's better to encourage installation of roof top solar panels on homes rather than giving free or heavily subsidised power produced at a high cost in highly polluting coal power stations to people year after year. I know It's not easy in a developing country like India which has several competing priorities. But the government has to reduce its involvement in economic sectors where private players can play a more efficient role and instead focus on areas where governments have to play a major role such as planning and allocation of resources for drinking water supply, pollution control, afforestation, river management, disaster planning, preparation and infrastructure building etc. Remember the role of the government is not to run all the operations in all sectors but to facilitate the development of its people, efficient use of resources, planning and preparing the country to manage economic, environmental, geopolitical opportunities and risks and ensuring proper governance systems at all levels.
Dr.Rajan has a good point here but I think we should also focus on manufacturing while acing the service sector, but only to meet local market demands, we can't fully rely on china for products, countries like china are autocratic imperialists, their authoritarian regime is now not just limited within their borders, now they keep threatening and violate borders of neighbouring as well.
The suggestion with regard to medical field is not a good one..when india is battling antibiotic resistance & also misinformation.... Allowing nurses & pharmacists to basically practice medicine could be catastrophic.....there is more suitable alternative.... Raising salaries of doctors who are willing to work in poor communities & in inaccessible areas & with them employ pharmacist, nurses, etc. This will generate employment & ensure accessibility...
People these days are so confused about what generates economic growth and what that has to do with the export growth model. Growth comes from only one source which is investment. The whole trick is to get the most investment going into the most high return areas sustained for the longest amount of time. The reason export lead growth works is because export lead investment works. You find a big stable export market you can rely on and find something of value you can export competitively to that market. Then you dump as much investment as possible to to pump out goods for that export market. You earn back stable FX income which then allows you to pump even more investment to making exports. This then gets you into the proper investment cycle to actually upgrade your entire economy rapidly. The problem with India is that it failed to and continues to fail to make the most out of its external environment. Turning entirely inward will only make forming sustainable investment loops which are what really power economic growth that much harder. Services could only be the answer if India could grow the export of services to a size that would be comparable to manufacturing. That simply may not be possible because most services simply cannot be exported. Also most services are simply derivatives of other sectors. They only derive their value from the income of other sectors and don't require much in the way of investment. Take for example restaurants, personal care and retail. These sectors basically just grow to as large as what workers from other sectors can afford and they don't need any difficult or expensive investments like sectors such as semi-conductors or aero space. The guest is right in that leveraging the old export strategy is not going to work. Leveraging the west is no longer a workable strategy as the west is now in steep decline plus they would have to be able to out compete China. Rather than pursue this out of date and suicidal strategy they need to find a way to leverage China. Need to figure out fast what comparative advantage they can offer China. If they can come up with something for that then there could be a bright way forward.
The reason why people don't send their children to government school isn't just about the teacher not showing up. It is more about discipline. People are afraid their children will take drugs, learn expletives and become violent if sent to government school.
To run a school from 6th to 12th taking 10 subjects each year u will approximately need 30 teacher max , assuming u have teacher which will teach a subject like geography both in 9th and 10th. If only govt would employ top 30 teacher with the salary of a professor with a fixed tenure of maybe 10 years with good presentation skills and one time investment in smart class environments and animated explaination of concepts.....and run these classes on youtube. The return of investment here will be too big. Then the govt will have to take care of just one school and be accountable to it and then can integrate the primary schools in villages and their teachers to provide these online classes to the students through projectors , which will allow them to have smart class environments without actually buying it. It will create an equal level of infrastructure somewhat...and really good education to all sections of society. Plus it will allow students to maybe use such free videos for tutions if the school isnt providing good education. And i think , if the govt use good english teachers...then the classes on universal subjects like sciences will u useful for all the students internationally.
Ram Rajanji never spoke a word of India's apartheid. The Hindu Caste system. Is why Indian cannot have the Chinese or any socialist way. It will remain a bitterly divided society, where a massive majority will battle and toil, while a tiny micro minority will weild power, capital and violence when necessary. The Indian Left is very much part of this Apartheid. Every major Left leaning person here has servants, drivers, maalis, kaamwaalis, and other serfs at their disposal 24/7.
But China is over-dependent on US and European markets. But in India if you create an industry to sell a product $5 half a million wants to buy, you are already a billionaire.
lmao, do you know how to read charts. 30 years lol. It's at the best 15 years, indian cities looking horrible is the reason Bangladeshis feel this way. Just go look at the grow rates, exports and gfp growth ratw
Markets need to be created in East and Africa. For that the Western and the Communist hegemony need to break. Genuine appreciation of cultures around us and far away should be fostered. This will lead us to consume goods made by each other.
With regards to the inequality and wealth/inheritance tax topic, The response from the guest sounds to me like, it's a bad idea because other countries have not achieved it effectively. I personally think the mindset is illogical and is too pessimistic. Something that is difficult to realize does not justify that it's unnecessary. The guest did mention how the rich would be able to use loopholes in the law to avoid the taxes, and how to manipulate the lawmaking in favor of themselves. So the failures are due to the corruption, rather than the natures of the idea itself. Then the question is about fighting against corruption. I'm not saying that simply applying wealth tax or inheritance tax will solve the problems. Just want to emphasize that people need the courage to face real problems and work towards resolving them.
@@bellhula1535 We need to tax the rich not just because they're rich. There's a deeper concern about the extreme inequality and what damage it can cause (and have caused in the past). I'm not gonna elaborate here. My point is that we need to figure out how to do it properly and effectively.
Well he does give solution to the wealth tax bit i.e. clamp down on concentration in different industries which makes it easier for the rich to become super rich, which I think is fair.
@@rabram557clamping down on monopolies is in fact less eficient than just taxing wealth. Because concentration of industry can help increase efficiency of goods produced because of economies of scale. By taxing the rich we're taking away the marginal profit produced by these industries.
This was very well done! I thought you could have probed him more on his services point! But i understand that you also had to be respectful (i thought you were way to generous to him). Kudos to your team!
The keypoint of service is who you are servicing ? Where does those guys(being served) money come from . If you are service US , it only means india just a modern colonies which can providing cheap human resources , US won't let u get some big imporve just some little tips. Talent loss is a big impact. If you are service domestic India , The service industry is just a sector that redistributes wealth. It cannot create wealth. High level service part its very hard unless u have strong high tech support , it can't grow on barren land (low level part but feed most people).
thats not the only kind of service sector is it. And he is not saying service industry alone, he has clearly said in many other places to focus on high margin businesses. which is what USA is doing. Nvidia, google, airbnb etc. all of these are service businesses. They dont manufacture.
@@2596mr ask nvidia,intel,google,apple,microsoft,amazone,facebook first , they won't allow u do it. they only hire u , then high tech service become human outsouring service, that was now indian are doing. If U only want do design part , at least u need to know how to build, but where u can learn the experiance with out manufacture, learn walk first then run.
@@dawner84 I agree in some aspect and disagree in some. and they can't stop us from anything. thats just their money talking for now. you can always outsmart people. look the biggest thing the west did during colonization was not allowing indians to pursue education and then using their IP laws to keep their dominance. before which all the education was shared across the globe. however, every innovation gets stale with time and can be commoditized. IP laws are valid for 10 - 20 years. Getting familiar with them and building our own high margin intellectual property is the only way forward. yes we need some manufacturing capabilities to setup "train" people. but that doesn't need to be that huge, you can have one big manufacturing advanced unit in every industry and we are okay. you can easily subsidize education of indians to go out and work in high tech universities or get experimental equipment in India. There are many creative ways to solve the "training" part. Intellectual capital is build on theory, experimentation and design first. and for experimentation we don't need that many equipment and can easily be outsourced to other manufacturing hubs like china. with evolving technology you can easily speed up the prototyping process as well now. the money and margins still lie in owning the intellectual property. not using it. but to create all that. the biggest need india has is to solve education. and not create these marketing driven businesses.
Can't Agree with Raghuram on the point that Rich can get away even if you tax them based on wealth. This is escapism. If Govts have the political will they can definitely make them pay the tax. If they can make poor people pay taxes in countries like US why not Rich? Also most of points his arguments are like this is better solution than other. Like creating more jobs are better than wealth taxes. Why not both? They are not contradictory ideas. Also putting fwd a tactical solution like creating more job ( which is purely controlled by market forces) is not a solution for systemic issues like wealth ineqyality. Taxing rich is also not a strategic solution but its an incentive to poor or short term.
Rich already pay high taxes. In fact, majority of the taxes. The solution is to make them spend and invest that money locally, than scaring them to take that money to tax havens.
Is that okay to take away your earnings to someone who doesn't work well. Lets say you are doing 12 hours of work and your colleague is doing only 6, is that okay you both paid equally? Or you need more according to your work?@@anopinionatedlaymanappears9052
He was the best man to lead RBI or India's economy for that matter. Well regarded and respected in international community as well. Only because he was noy willing to help Modi in looting the poor and making rich richer, he was let go. :(
India should start businesses not services. Or we will go back to loop of colonization. We need to make stuff Western countries want to buy. Not stuff they want us to make for them. India has a huge population we should manufacture for our own people and create other stuff for export. Handicrafts industry is an area we have missed for employment growth. India is and always will be organic, no theory can be put to Indians. We love to live and we have an innate sense how to grow. Boxing us into any one set would be disastrous.
No body knows him in US.If he is interested about India he should settle in India and talk to various forums here .Otherwise it is a waste of time for him and the people who wish to hear him.
This was a very interesting discussion, it's rare to see someone engage with Dr. Rajan and other neoliberal Indian economists from a left perspective. Regarding his point about services, I think he is objectively correct in pointing out that manufacturing has failed to drive growth, and that it is unlikely to do so for structural reasons. With that said, I'm not sure his point of employing Indians in low level employment (maids, cleaners etc) is going to result in social mobility. In this regard your point about educational apartheid becomes relevant, especially when considering the social forces in our country that currently maintain this structure. The apartheid is quite intentional. I wish you had pushed him more on his rebuttal regarding wealth taxes. He's right that they haven't been effective, but a lot of that could be put down to a lack of political will. For example, I think a fairly easy proposal would be to tax stock market holdings at 1-2% per year, above a threshold value of 1 Cr/5 Cr or something similar. That hardly affects the middle class and would mop up money pretty easily. Another means could be to tax non residential real estate holdings. Again, the fact that that they are all being digitised makes it easier. We could even just set up an estate tax. None of this stuff is foolproof, but should be quite impractical for the ultra rich to avoid. Sure you can put stuff in your son/daughter/cousin's name but if you have 10 houses and 1000 of crores in holdings, I don't know how those could be escaped. Perhaps Dr. Rajan could have commented. The most foolproof idea I've seen is just to set up minor transaction fees for HFs/NBFC/HFT, which again is mostly used by the wealthy.
Prof Rajan ideas are idealistic and socialist. But he is against socialism and taxing the rich because he is obvious rich. All these socialist jobs need to be paid by taxation or the government ends up printing money. He ask for examples of wealth tax, look to Europe for many successful example. Europe has high taxes and a lower inequality.
@olderchin1558 He is not against wealth tax because he is wealthy (he is not that wealthy by the way, he is just well off). He is against it because he thinks it is unrealisable. This is where he needs to be proven wrong.
Why would Raghuram Rajan run after Rahul Gandhi and the INDI alliance when they are promising Rs. 8,500 a month for all poor? Anybody hears this from Rahul Gandhi should separates from him! Finally, in the agricultural sector, the tiller gets full tax free, but millionaire owners of land must pay taxes like all other citizens in India. Millionaires like Sharjah Khan are purchasing tillable land to avoid paying tax, which must be stopped.
16:30 so people need to remain servants? Seriously? That's not a long term solution. Elites need to become more self reliant. Let the poor stufy and become big and work towards Sanatanatva globally.
Bubble is company like apple almost 1 trillion with petty employee.... were countries with 1trilliion gdp population were and how this mismatch took place
Competition is tough in manufacturing that doesn't call for keeping manufacturing aside. Yes, we can debate on how to improve it. Manufacturing can generate more jobs for servicing. If you want to become a strong and powerful country, you need to be skilled in manufacturing from needles to aircraft carriers. However, I agree on one thing. Throwing money to the problem won't bring solution.
In india and in general worldwide, most jobs are services not manufacturing. Eateries, ola, Uber, Zomato, urban clap are employing more people than iPhone or Samsung in india
@@deshampravesh7108yes and that's bad because services unlike manufacturing does not produce Dead labour. Even in capitalist economics like in Solow's model the key to economic advance is through industry that can help technological breakthrough, not uber eats
*Salary of government teachers is so high that they employ another person to replace his attendance and doesn't show up in school and private schools are doing mainly drama, no education with salary less than daily wage labourer all this shows disastrous situation of Indian education system and it's totally destroyed value of education and employability and Wealth tax is must because of abundant money with few people and their luxuries are reasons for climate change they must pay tax for climate damage and social disharmony inequality.Congress party ko, Rahul ji , Priyanka ji ko email karne ke bad bhi 100 bar message karne ke bad bhi Qualified hone ke bad bhi Raebareli ke college me teaching post ki job ke liye bar bar khna pada lekin job corrupt practices walo ko di gayi qualified ko nahi aur na apne aur na Congress ne iske bare me mujhse bat ki ye halat h Raebareli ka jaha se bar bar Congress ko jitaya gaya FG college ki bat h jo Gandhi family ke nam se chal raha h,Ap neta log chartered flight me ghoom rahe ho aur carbon emissions se climate change se jan aadmi ki ja rahi h aur party aur government bhi kuch nahi kar rahi h aur employment ka bhi koi kam nhi kr rahi h Congress RAEBARELI ke Harchandpur me, Voting khatm Hui turant light Katna suru ho Gaya h ghanto ke liye din raat aisi h BJP Sarkar aur aise h Desh ke neta ,inko kam nahi karna h sirf faltu ki bato se vote Lena h, vikas bhi sirf dikhawa h vote lene ke liye jaise light election ke pahle thi bs uske bad katna suru ho gyi h raat din, journalist bhi neta se kahke Kam nahi Kara rahe h to bato ka koi fayada nahi h, Janwar se buri halat me is garmi aur barbadi me jindagi jee raha h adami, Kam bhi Kara do, tabhi to khushali aayegi, Qualified hone ke bad bhi kam nahi karne dia jayega proper salary par to koi khush nahi rahega, phir education ka koi matlab bhi nahi h band kar dena chahiye turant school college so called democracy jab kam hona hi nahi h,RAHUL ji, PRIYANKA ji, ap dono aur baki bahut se Congress leaders ko emails karne ke bad bhi kam nahi karaya gaya, social media par bhi likhne ke bad bhi koi kam nahi karaya gaya, abhi opposition me hone pe ye hal h to kya kam karegi Congress SARKAR ane par,Congress kam kare,RAEBARELI ke HARCHANDPUR ganv me raat me light nahi h yaha Garmi me Abhi peak aa raha h garmi ka aur bar bar din bhar light kati ja rahi h aur raat me bhi aise hi light nahi aa rahi h Congress ko DM se bat karke ise sahi karwana chahiye.RAEBARELI me aj jhoote promises Kiye ja rahe Congress ki hi 2017 me Punjab Sarkar election se pahle pakki naukari ke nam pe form bharwayi lekin kisi ko job nahi dia aur wahi aj hal h, Raebareli me Congress ko bahut bar letters likhne ke bad bhi, College me teachings post ke corruption ko lekar koi kam nahi kia gya, FG COLLEGE, MAHAVEER, Dayanand jaise colleges h yaha NET qualified ko hi padhana allowed h lekin farzi unqualified padha rahe, political, teacher ke connection Wale padha rahe, kahi pe sirf certificate NET ka use hota h padhata koi aur h, is level ka corruption h lekin Congress ko bar bar likhne ke bad bhi koi kam nahi hua, to ye YUVA NYAY bhi ek julma hi h Congress ka, agar Qualified jobless rahe aur corruption se job mile, jisko job di ja rahi h wo 8000 per month salary h ye halat h education system ki College Teaching ki ye salary h majdoori se kam Paisa dia ja raha h, Congress ka kuch na karna iske liye Yuva nyay ko jumla hi sabit kr raha h, HARCHANDPUR ke Kotedar ration nahi deta, lekhpal certificate nahi banata, highway ke bagal me 2 ponds sookh rahe h koi kam nahi ho raha h uspe,District hospital me machine nahi h medicines nahi, CHC ka bhi wahi haal, in sab par koi kam nhi ho raha h Congress se, Ye kaam Congress IT CELL bhi DM , College se bat karke kara deti karna hi hota to, lekin sach ye h ki Election ko aur election ke promises ko Voter ke muh pe TAMACHA bana dia gaya h, samne jhoot bolna h aur koi kam nahi karna h, sirf bate karni h, Bewakoof banana h!*
Excellent interview. Rajan makes good point, but his take on wealth inequality is unconvincing. Thanks IGL for keeping things civil and yet argumentative.
I don’t recommend Raghuram Rajan for a job with government. He is comparing Vietnam to India, which is insane, India is many times larger and the people within contain intellectuals who are looking for developing technologically and odd they cannot find, they will go abroad for that just like Rajan! India has people of all colors and brain power and only service industry with low end, drab manufacturing makes no sense. Whatever Rajan says can be and must be implemented by not let go high tech manufacturing so every citizen has opportunity move ahead. Overall, he makes no sense, least of all comparing any Southeastern country because of mere size of population!! The current government has improved the quality of life of poorest of the poor. Now they have to work on the educated unemployed.
@jay19chandra77 India hardly has brain power. Indians are not interested in producing knowledge and becoming researchers. Sure, you might a few thousand individuals here and there. But 99.99% of Indians have no interest in knowledge and intellectual development. Indians don't ask questions like "how" and "why"; Indians don't questions things.
Manufacturing (not mere assembling) and services sector go hand in hand. High end research and developmental services are critical for embarking upon high value added manufacturing.
That is just not true. In China for example the industrial sector took off long before the advanced services sector. Same with Japan, the US etc. I cannot think of a country where the service sector grows first before the industrial sector.
Btw presenter, I'm quite sure my household pays multiples in income taxes than yours. We should have a greater say in how the country should be governed.
Naaah, if such is the case then riches should guide the policies of a nation which they do many a times through backdoors, nation is governed by political equality and system of votes during election. Work on your concepts.
This Raghuram Rajan is a Liberal congress type right winger, and to be precise, a Capitalist bootlicker. I have seen him in many interviews saying that India should concentrate only on the services sector and not the manufacturing(Maybe he is afraid that hard labor will gain momentum and recognition in manufacturing sector). A country's manufacturing ability determines its wealth and might around the world. And it is paramount for a country like India that imports almost all its military equipment. This guy has been going around making stupid Neo Liberal rants.
Rajan is daft and knows nothing about history. The communist revolution in Russia took a backward empire from the “sick man of Europe” to the most advanced economy in Europe and second biggest economy in the world in the space of 4 decades. In that period, it took out some time to crush fascism while fighting imperialist countries which embargoed it to stop its rise. It also beat the USA in the space race, no mean feat. Rags Rajan is basically a historical illiterate and should have been called out as such. Meanwhile, the second communist revolution, the Chinese communist revolution, replicated and improved on the record of the first communist revolution; pulling the most amount of human beings out of poverty in a generation. A record never achieved by any capitalist system. Rags Rajan needs to go back to school to get a history education.
Rajan is daft and knows nothing about history. The communist revolution in Russia took a backward empire from the “sick man of Europe” to the most advanced economy in Europe and second biggest economy in the world in the space of 4 decades. In that period, it took out some time to crush fascism while fighting imperialist countries which embargoed it to stop its rise. It also beat the USA in the space race, no mean feat. Rags Rajan is basically a historical illiterate and should have been called out as such. Meanwhile, the second communist revolution, the Chinese communist revolution, replicated and improved on the record of the first communist revolution; pulling the most amount of human beings out of poverty in a generation. A record never achieved by any capitalist system. Rags Rajan needs to go back to school to get a history education.
Nope. Selling services to the rich. India's service sector lends services like IT, Consulting, to the west at a bargain. Its just that its small, not even 10% of India's GDP. But the people in them are paid well, certainly putting them in India's 0.1%
ReghuRam Rajan should clarify the following doubt; In every country in the world, in every elections, unemployment and inflation are the main issues. 97 crores is the total number of voters 51% is women= 48 crores 50% of women are homemakers ,uninterested in jobs= 25 crores People above 40 years of age = 57 crores People who are already engaged in govt sector, private sector etc= 5 crores. There are students who are above 15 but not in employment market = 8 crores. Therefore, actual working age population= 24 crores. People who demand jobs= 24 crores RBI data says, 43 crores have taken self-employment MUDRA laons and 18 crores ahve taken self-employment agricultural loan. TOTAL Self -Employment borrowers= 60 crores.
All this guy did was increase the interest rate in India during his period for US economy. All the phone call loans given under his tenure for Nirav, Mallaya, etc.
41:04 That was a solid point! I'd also add regulators independent of political influence are important. Big industrialists can capture regulators by colluding with politicians. Always great listening to doctor Rajan.
Thanks for an intelligent and respectful discussion. Very thought provoking. What is the most effective model to improve the livelihood of people in developing nations? With the advant of aitomation and AI, I foresee many low end jobs being replaced. As such, what used to be effective avenues to lift people out of poverty may not exist anymore. What are the new ones? I await a dicussion on that.
Economists like Rajan think that wealth inequality does not matter. In other words, if all the wealth of the world belonged to one person, and everyone else owned nothing and were basically servants of that one person, it would not change the prescriptions of Rajan an iota. According to Rajan, capitalism can be very efficient under those circumstances, maybe the most efficient, as that would be the polar opposite of communism that he so dreads. This is why people like Rajan missed the elephant in the room, the massive and obscene wealth inequality, which is increasing every day, in the world we live in.
These so called economists never discuss about the population explosion which is the main cause of unemployment in india, and neighbouring 100% islamic countries. Unless and until the population comes down by 50% atleast all countries in Asia face natural disaster climate change and drought related starvation in the entire region.
man such error-filled outline of service sector vs manufacturing......he is a governor, teaches in Chicago? service sector but export of services!.........
I disagree with you profoundly your description of communist revolution. First of all can’t you see the hunger poverty and bloodshed which goes on in the rich capitalist countries. Soviet Union under Great Lennon and Stalin made historical progress in the development of socialist economy and defeated fascism and same socialist China under Chairman Mao leadership when it was cut off from the whole world for 21 years and at last Nixon had to go there and China came on world scene and became security council member. Capitalism has got nothing to offer it is in decline it will become obsolete socialism is the only solution to against inequality poverty hunger and exploitation of working classes.
Lenin, Marx,Mao and their successors killed 60 million people each in their respective countries. So much for justice. What you have left are oligarchs and unaccountable politburo members. So much for that being a success story.
This is a great conversation. With that said there is one point where Dr. Rajan provides a solution just as inefficacious as he claims wealth taxes are. When he talks about encouraging competition, the host should have pushed back , asking him to name a country where such a theory has worked on a large scale (with large corporations). Dr. Rajan must know that in the United States antitrust law is no longer enforced. The reason for this is the same reason for why there isn’t a wealth tax. The influence of wealth in politics. Private industry doesn’t actually want competition, they prefer collusion which invariably leads to monopoly. If he claims there’s no political will for a wealth tax, then he must be ignoring every poll that suggests the contrary. If wealth taxes don't work (and he didn't provide a specific reason as to why) then why does he think government enforcing competition will work??
Why wasnt there a question about India's current fascist government? Unfortunately the Indian economy is functioning exactly as the west desires it to function, a few super-rich Indian Managers that drains wealth out India into Western Companys while the masses are left to manage on their own. This produces low wages, high corruption, and a dysfunctional government unable to protect India's workers and its education system. Its Fascism...All are ingredients that lead to revolution, a socialist revolution and its the only thing that can fix India. FYI, if u cant understand what an economist is saying and it doesn't make logical sense, thats also by design and its probably western economic thinking, which has always been colonial economics.
most of indias wealth is in britain stolen by the british imperialist, unless your questioning them and their fascist lineage its pointless, Indias super rich have money parked in india their wealth generates interest that pays for low and middle income subsidies, whereas the british NHS is fully funded by Stolen indian and african wealth, Even America which got rich with gold after WW1 had much of it come from Indias gold Mines which belongs to Indians
What can one expect from people who point to some pockets of excellence and start bragging, instead of thinking on how convert those excellence widespread. Mr. Raghuram learnt the rules of the game well, but fails to come up with solutions on how to play it better than everyone else.
RRRajan is disappointed old man who hates current government as he is removed from his position. He wants current govt to fail. But, fortunately current government is too good. Jai Modiji.
The wealth is basically shares held by the owners or so called riches. You can’t grab the shares and sell. The share value will collapse and will destroy there company. Ignorance in economics matters!
