Newspapers all over today are reporting US federal Reserve Bank’s bail out of American International Group(AIG). This is the 3rd time in last one month that the US govt had to bail out major investment firms.
The irony is that the pillar stone of a Capitalist economy is resorting to socialist tactics. The government is funding and rescuing these huge private enterprises. We Indians actually are watching all this in dismay and probably economic analyst are a bit confused with the policies to adopt at this point of time. Post 1990’s the Indian government started to throw open its economy to private players. We call it the the liberalization period. Congress as the principal party never supported socialism but it also never practiced the American way of doing business. Today as we see the Bush administration taking desperate measures to bail out companies, it is evident that Government even though less efficient and less progressive is after all more stable.
So for the Republicans it’s a bitter pill to take. India should take it as a lesson and role out its own economic policies much more cautiously in future. A need for a central control is necessary in whatever business is carried out in the country.
In our common language we say that if one gets a Government job, at least he will never be in danger of loosing it. But that’s not the case with private jobs. Thousands of pink slips are just an indication of that.
Are the Soviets laughing?
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