Article - 50 Week 7 On Government & Business:

Article - 50 Week 7

On Government & Business:

On many counts, humans tend to get led in groups or bands. They would follow a lead, rather than think and act independently with perfect rationality. There are thriving industries like fashion garments, and rock music etc, who exploit this collective human dumbness -  if we would like to call that. However, the extreme exploitation of this weakness has given rise to the best of all industries : Government!  Humans can not live without being led. The silver lining is that there are a few among these humans, who think differently and would rather lead than be led. Such people make governments. Governments are of many types like democracy, autocracy, hereditary, military, and so on. They lead and extort a hefty price. That's where the reason for governance gets lost in search of maximizing extortion. Most of the time they would extort the maximum possible amounts from the people they lead and gloss over the long term effects. 

Some are short sighted and some are visionaries. Generally, where the longevity of continuance is of ephemeral nature, they invariably resort to short term outlook and extort mindlessly and cruelly the maximum they can from the people they lead. For example, our elected governments know that they would last surely for five years and uncertain about the next election. So they engage themselves in 5 year-extortion-cycles. That's comparatively benign in comparison with cases where the government is in the fear of losing its power any time or have the apprehension of being toppled, like in Pakistan or Afghanistan. They simply plunder. And in cases where the government is secure to the thinking that they would stay no matter what, as in the case of U.A.E, Singapore, China or Brunei, their attitude takes a phenomenally different trajectory.  They invariably think of building roads, rails and spreading education to all to produce more wealth, so that they can extort (tax and high resource revenues) more and more, rather than mindless plundering that would diminish wealth and therefore the size of their booty. However, some like Fidel Castro would like not to topple the apple cart in the fear of breeding competition in the process, with Uncle Sam watching every move.

In other words, governments are very similar to bandits in their behaviors, no matter how they take the reins of power. When the a group of bandits loots a locality where they would not return, they would plunder every thing and may set the place on fire and kill the victims to prevent backlashes. However, when they have to do repeat acts, they would rather behave like Robin-hood to keep the people producing wealth in a continuous manner and periodically plunder only from the accumulators. By distributing some of the loot to the poor workers, they maintain their support base and perpetuate the extortion with considerable ease, stability and lesser blood. MNREGA is just one example in India and in Singapore the government tops up the Bank accounts directly from the budget surpluses.

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