By: og

og — Thu, 13 Dec 2012 08:11:09 +0000

Even after considerable liberalization, civil aviation isn’t doing well in India (or elsewhere for that matter). AI walks like a living-dead zombie. KFA is drowning in its own beer-piss. Even Jet Airways is in substantial red ink. All those colorful rudder pennants from the mid-2000s are consolidating and disappearing. Indigo remains the only silver lining. But the specific identities of who sink and who swim does not matter — the economy simply had way too much airline in the mid-2000s. Just like we have too much tablet and smartphone now. The textbook versions of capital, finance, investment, competition, are all inapplicable to India. A major fraction of large-scale capital in India is tainted: it should not really exist. In USA and India, finance is now out of control and destined to benefit not the economy but its own mandarins’ offshore accounts. The skew of (speculative) investment toward real estate in India is obscene, while electricity, roads, and public transportation cry out for funds. And about fair competition overseen by honest governance, the less said the better. I don’t believe that efficient markets beyond the village scale can be managed by Indians at all.

Comments on: Minimum Wages — Follow up

By: og