When Right goes Wrong!!

Russia (USSR) and America, two former super powers confused the rest of the newly independent world as to which approach for an economic planning is best for the country. Russia being Socialist, in its early years dominated and proved to be more fierce full in overall development than the latter's Capitalist Economy. In the era of cold war, Russia definitely won over USA by means of strong internal (government) support to the budding innovations and discoveries. Many countries consequently fell into line and accepted the Socialist economy, though with some necessary alterations. India being one of them.

Well the simple ideological difference between Socialist and Capitalist theory is while Socialist emphasises on distribution of wealth in the society, Capitalist emphasises on creation of wealth. The latter being more logical in the sense that in former the wealth is just distributed and without emphasis on creation, and hence there is a possibility of depletion of wealth to be distributed, while the latter though just creates wealth, but by the chain process in creating wealth it automates the function of distribution of wealth, and hence it has dual aspect which includes the aspect of Socialist ideology too. Later years that followed, the Russian economists could see the end approaching as the superpower had gradually given in to diminution of wealth and economy in nation. An ideology change was required and hence forth from 1991 Russia changed its face and took a step forward to follow the booming Americans' Capitalist Economy. In the same year India too came out of the iniquity politics of Socialist Economy and turned towards Capital Economy. India, Russia, and etc countries that realized the importance of "Generation of wealth" did show a drastic recovery. The pace being so strong that they were being called as the future superpowers of world.

But today like 1991, once again the world stands on the bend where the same question but in counter way is being asked, "Is Capitalist Ideology better than Socialist?" And the question coming right from American Economy, where the creation of excessive wealth has left behind a trail of excessive liability. Liability worth Trillions of Dollar. And for which American government is looking for a socialist approach.

If you wondering how come I am blaming America of becoming socialist in its approach, then the answer is bit simple, the American government has passed the bailout package for Industries and Markets which means the government would provide them with tax payers money. And when tax payers money is in question no government can allow the companies to function independently and manipulate that money freely. It will definitely bring in interventions and accountability of government in the normal functioning of the industries. While the sole motive of any government is the welfare of its dear citizen, hence gradually the main objective of these companies too will shift from maximization of wealth to distribution of wealth and welfare to the society.

An indeed a paradoxical situation, Russia turned to Capitalist Ideology while now America has laid a foundation stone for Socialist Economy. Given such scenarios the major sufferer are the developing economies like India, which fails to brace while swinging between these ideologies. It has to empower various stratagems especially those related to Liberalization and Globalization, to maintain its due growth along with stability in economy.


And at last the hot debate over Capitalist and Socialist continues!!