As a student of the scientific disciplines, I am deeply influenced by conservation laws . Conservation laws help us solve many problems . Law of conservation of mass and energy , Law of conservation of momentum , Law of conservation of angular momentum and what not .
The idea which regularly came to my mind is does a Law of conservation of Wealth!! hold !! Wierd idea, but yes it did come to my mind . As long back as 4 years ago , I used to include conservation of wealth in my neat set of conservation laws . Come on lets try to test it .
For this purpose we will assume the theory of supply and demand . If u dont agree with this theory do let me know .
So , once upon a time there was an isolated village with three inhabitants , villager A , villager B and villager C . The village used the currency Foo . Villager A loved mangoes , B was indifferent towards mangoes and C used to grow mangoes . All three villagers owned 100 Foos .
C had 2 mangoes which he was ready to sell . A being the avid mango lover agreed to buy . He was ready to pay 5 Foos for a mango .
Now what is the total wealth of the village :
A's wealth =100 Foos .
B's wealth = 100 Foos.
C's wealth = 100 + 2* 5 Foos = 110 Foos .
Total = 310 Foos .
Suddenly B develops an intense desire to eat mangoes . He starts to meet C and finds him in negotiation with A regarding the mangoes . B really wants to have the mangoes and rates the mangoes at 6 Foos per piece .
Now what is the total wealth of the village :
A's wealth =100 Foos .
B's wealth = 100 Foos.
C's wealth = 100 + 2* 6 Foos = 112 Foos .
Total = 312 Foos .
Wow, the total wealth of the isolated village has changed . Our law of conservation of Wealth has failed!!
Physicists earlier used to follow a law of conservation of Mass , which was found to be inaccurate and came up with a law of conservation of Mass and Energy .
Maybe we need to forget the Law of conservation of Wealth , and start following a law of Conservation of Wealth and Demand , the exact formulation will need more investigation .
Wealth can be created and destroyed, It is not that it can only be transferred from one hand to another .
I hope communists understand this and end their opposition to creation of wealth and subdue their love for transfer of wealth .
Saturday, June 13, 2009
Poverty
When I was a child, the sight of poor children used to make me very sad. Actually not only poor children but even their poor parents . Rather I should say poor families . It used to be a really regular phenomena for me . Of course , in India we dont need to wait to see poverty, even if you are in Delhi or Mumbai, leave aside the other interior parts . We have pockets of prosperity but as a whole we are a poor country .
Ya, so I used to compare myself with them . I used to think how priviledged I am, and I used to think what would these poor people be thinking when they would be looking at me . Very frequently I used to harbour a certain guilt conscience because of this . I used to think: Is it that I have snatched from them resources of which they were rightful owners ? Am I the reason for the state they are in! And is this what they think about when I am in front of them.
My mind replied in the affirmative and I convicted myself of this crime. The next question I had to answer is how do I exonerate myself of this . I found an answer to this too . I decided that when I grow up and will start earning I will donate 20% of my income to poor people . The figure of 20 had no basis, just some reasonable figure the child in me came up with .
When I look back at those days of contemplation , the erroneous analysis amuses me . What amuses me is how improper understanding of economics leads a child to become a communist .
Carl Marx talks about two classes in the society , the owners of capital and the sellers of labour .
This differentiation of society in two groups is what his theory of Communism is based on . He tries to explain economics on the basis of interaction of these two groups .
Few questions we need to answer before proceeding:
1) Are these two sets of people really disjoint ?
2) Are these two sets of people really in-interconvertible ?
An individual can be fighting the perpetual 'communist' war only from one side isn't it !!
If these two sets are not disjoint , does Marx want me to believe that there are people who are participating in this war from both sides !
If these two sets are interconvertible , does Marx want me to believe that there are people who are switching sides in this war !
Take me as an example . I am a labourer who sells my labour for money . This money which I earn is convertible in all kinds of things which Marx would want to call 'capital' . I can buy land , houses , shares in companies , using which I can make profits . So now, am I an exploited labourer or a capitalist who exploits ? Marx needs to answer this question !
Ya, so I used to compare myself with them . I used to think how priviledged I am, and I used to think what would these poor people be thinking when they would be looking at me . Very frequently I used to harbour a certain guilt conscience because of this . I used to think: Is it that I have snatched from them resources of which they were rightful owners ? Am I the reason for the state they are in! And is this what they think about when I am in front of them.
My mind replied in the affirmative and I convicted myself of this crime. The next question I had to answer is how do I exonerate myself of this . I found an answer to this too . I decided that when I grow up and will start earning I will donate 20% of my income to poor people . The figure of 20 had no basis, just some reasonable figure the child in me came up with .
When I look back at those days of contemplation , the erroneous analysis amuses me . What amuses me is how improper understanding of economics leads a child to become a communist .
Carl Marx talks about two classes in the society , the owners of capital and the sellers of labour .
This differentiation of society in two groups is what his theory of Communism is based on . He tries to explain economics on the basis of interaction of these two groups .
Few questions we need to answer before proceeding:
1) Are these two sets of people really disjoint ?
2) Are these two sets of people really in-interconvertible ?
An individual can be fighting the perpetual 'communist' war only from one side isn't it !!
If these two sets are not disjoint , does Marx want me to believe that there are people who are participating in this war from both sides !
If these two sets are interconvertible , does Marx want me to believe that there are people who are switching sides in this war !
Take me as an example . I am a labourer who sells my labour for money . This money which I earn is convertible in all kinds of things which Marx would want to call 'capital' . I can buy land , houses , shares in companies , using which I can make profits . So now, am I an exploited labourer or a capitalist who exploits ? Marx needs to answer this question !
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