Understanding India's Economy and Political Landscape
Decoding India's Economy - A discussion with Prof Prabhat Patnaik on the state of the economy, the decline in living standards, and the changing political landscape in India.
00:00:00 Decoding India's Economy with Prof Prabhat Patnaik. Exploring the ruling powers in India and their influence on economic policies, with a focus on the middle class and support for neoliberalism. Middle class fears socialism and attributes success to talent.
💡 Neoliberal mainstream economists promote privatization, demonize public sector subsidies, and warn against deficits and inflation.
🏛️ India is ruled by a corporate Hindu Alliance led by Narendra Modi and corporate figures like Adani and Ambani.
💰 The well-to-do middle class supports the neoliberalism promoted by the corporate Hindu Alliance, while the lower middle class is not as supportive.
00:07:51 Decoding India's Economy - A discussion with Prof Prabhat Patnaik on the state of the economy, the decline in living standards, and the changing political landscape in India.
💼 The middle class in India has experienced a decline in their living standards in the last decade.
🌍 The collapse of Keynesianism and the shift towards neoliberalism was a global trend, starting in the late 70s.
📰 The media and public culture in India played a significant role in shaping the consensus and narrative of the middle class.
00:15:42 This video discusses the global wage and primary commodity price explosion in the late 1960s and early 1970s, the impact of the collapse of the Bretton Wood system and the oil price hike. It also touches on the social and economic changes in India during the 1970s and 1980s, including the emergence of Thatcherism and its impact on inflation and unemployment.
📉 The global wage explosion in the late 1960s led to a worldwide primary commodity price explosion in the early 1970s, which was exacerbated by the collapse of the Bretton Wood system and the inflationary pressures caused by the Vietnam War.
💰 The oil price hike in the 1970s came on the back of the primary commodity price explosion, as the oil producers formed an oligopoly and prevented the collapse of oil prices.
🌍 In India, Indira Gandhi's defeat in the north in 1977 and subsequent social coalitions led to the beginnings of economic reforms in 1982, influenced by Thatcherism and Reaganomics.
00:23:35 Decoding India's Economy and the intellectual changes that occurred in the west and in India. The rise of right-wing economic thinking and the role of inflationary expectations and interest rates in shifting the class balance. The organized entry of the global capitalist class in public discourse.
📉 Inflation expectation is a concern that needs to be curbed.
🌐 There was an intellectual change due to a dead end in the religious regimes.
💼 Friedman and Hayek became influential figures in right-wing economic thinking.
00:31:27 This video discusses the changes in India's economy, including the shift towards finance capital and the rise of right-wing politics. It also explores the role of the bureaucratic managerial class and the impact of migration on reforms.
📚 India's education policies were influenced by international institutions in the 80s, shifting focus from qualitative to quantitative studies.
💼 India was ruled by a bureaucratic managerial class that had a collaborative relationship with the corporate world.
💰 The emergence of finance capital in India led to changes in employment policies and income inequality.
🎯 The rise of right-wing politics in India can be connected to the change in class configuration and the desire for migration to other countries.
🌐 The shift towards neoliberal policies within the Congress party contributed to the rise of the BJP.
📈 The bottom 30 percent of Indians experienced slower growth in per capita income compared to the rest of the population.
00:39:21 Decoding India's Economy: Prof Prabhat Patnaik discusses the enormous increase in inequality and its detrimental effects on democracy and social progress in India.
📈 The income growth rate for the top 1% in India was flat until 1982, but then grew at a massive rate of 6.7% per year.
👥 Inequality is dangerous for democracy as it enables the absolute rich to capture all institutions, leading to a counter-revolutionary mindset and a change in the ruling elites' stance on social issues.
💡 The crisis of neoliberalism cannot be overcome within neoliberalism itself, and extreme right-wing governments are unable to address the crisis, leading to worsening unemployment and living conditions.
00:47:16 Professor Prabhat Patnaik discusses the need for change in India's economy and the challenges faced by the poor. He highlights the low labor force participation rate and the distribution of work among more people. Despite the challenges, there is optimism for a revival of working-class militancy and an alliance between farmers and workers.
📊 India's economy is facing challenges, with the need for change and a potential shift towards Keynesianism.
💰 The Modi regime in India maintains support from big conglomerates but also focuses on spending to gain votes.
👥 Despite efforts to help the poor, there is a vast population suffering from unemployment and poor working conditions.
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