Should policy makers listen to business. Where should we draw the boundary ?

Business community is sometimes the most short sighted pressure group you can see anywhere in the world.

This is not because they are stupid, but because their default propensity is to optimize the present, it’s anti delayed gratification, anti Sustainable development, anti Human development etc.

Every country (or state) ever succeeded in the world has a history of resisting their crooked persuasive tactics, whether it’s FDR in USA, Labor in UK, CCP of China, Lee Kuan Yew of Singapore, Socialist-welfare parties in Nordics and Europe. In the FDR example, his policies impacted US economy from 1946 -1963, a period of unparalleled economic growth and redistributed gains in family income. That time the top marginal personal income tax rate was 91%, applied to incomes of $200,000 or more (or $2.8 million in today’s money as of 1946) until 1955, when the threshold was raised to $400,000 (or $3.8 million today)(source : Latimes )If we take the Kerala example, land-reforms, progressive taxation, labor laws, investment in health and education, etc, at the time(even now) was dubbed as anti capital, anti business, anti development. Long term If we are smiling at our HDI or Niti Ayog index, etc we should be thanking the bold step the old guard took even at the heavy risk on life.


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