, 13 tweets, 9 min read
Thank you @Swamy39 starting my weekend read.. #RESET
RESET by @Swamy39 has laid out in detail the facts and demonstrated clearly how command economy never worked.. it's not a hypothesis anymore it's a proven fact .. do read RESET .. #RESET #Bharat #Economy #India
Null hypothesis being Soviet style planned economy is best suited for growth n alleviating poverty .. looking at the data there is no benefit from command model thereby low p value and hence you reject the null hypothesis ..🙏 @Swamy39 for data,history n data narrative . #RESET
Keeping current rate of investment 24% at present but by changing the investment mix by changing the proportion of low ICOR to high ICOR overall ICOR be brought to 3 n achieve 8%GDP..increasing investment to 30% with right mix of investment will net 10%gdp @Swamy39 #RESET do read
@Swamy39 argues 5 flawed assumptions of Soviet model 1.state control of commanding heights of economy would raise domestic savings through higher public saving and hence in investment as a whole 2. Large public sector investment will accelerate growth #RESET
3.Strict import control and import substitution would reduce foreign dependence and enable self-sufficiency
4.having state control of commanding heights of the economy would produce egalitarian economic strata n equitable distribution of income n wealth #RESET
5. Rapid growth of capital goods by reducing consumption n diverting savings would modernize agriculture and agriculture could be squeezed of funds through adverse terms of trade and by reversal of credit-deposit ratio of banks to finance industrialization. #RESET by @Swamy39
The fifth was most damaging to the Indian economy. @swamy explains how Gandhian self reliance was misunderstood n the disastrous import substitution. #RESET ..
👉One interesting academic info: @Swamy39 applying Fourier transform on index numbers of prices data finds agricultural prices lead general price level with a lag of 2 years #RESET
@Swamy39 Socialism means a large govt, and a large govt needs finances through heavy taxation. And nothing kills incentive as unthinking taxation does. those govts whose economic strategy was based on reasonable taxation of the individual have produced miracles. #RESET by @Swamy39
@Swamy39 [sic]The synthesis view that emerges from this exercise(NITIAayog)is that it is possible for the economy to work its way out of the current slowdown and restore high growth,but this will take time due to gestation lags and a number of hard policy decisions.
#RESET by @Swamy39
Continued negligence of agricultural sector is worrisome.. employment to gdp is pathetic #RESET by @Swamy39
Integral Humanism original thought provoking sensible original philosophy compared with current prevalent "isms" #RESET by @Swamy39
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