THE NDA government is reportedly planning drastic cuts in social sector spending in 2014-15 to reduce the fiscal deficit. According to a report in The Hindu of November 27, the cuts relative to the budgetary provisions for this year could be as large as 25 percent in many sectors. While the government has not confirmed these reports, the coyness of its protestations, together with the pervasiveness of such reports, and the clear evidence at least with regard to one area where cuts are being effected, viz.

THE world capitalist economy has been mired in stagnation and high unemployment ever since the 2008 financial crisis. Many were predicting that a turnaround was about to occur, partly because of the fact that the US economy last month showed larger job creation than of late, and also because it had grown at 3.5 percent last quarter which is higher than for some time now.

India shows a substantial rise in per head food production in recent years but it is merely  adding to exports and to  stocks – food consumption by the people shows no rise FOR a quarter century from the early 1980s, production of grain per head of population at the global level kept on declining. Developing countries were urged under neo-liberal free trade policies promoted by advanced countries and global institutions, to export more and more agricultural products, and their pliant governments did exactly that.

THIS being Jawaharlal Nehru’s 125th birth anniversary, much is being written about him and the economic strategy he pursued. The corporate-controlled media are full of articles criticising the “inward looking” dirigiste economic strategy that Nehru, along with PC Mahalanobis who was in charge of the planning process for much of the Nehru era, was supposed to have introduced.

THERE is a peculiar paradox at the centre of capitalism. Since it is a system that institutes free mobility of workers between sectors, real wage rates should be equalised across occupations which are not too dissimilar from one another in terms of their arduousness, or hazardousness, or unpleasantness, or skill requirements, or intensity of effort etc. In other words, more arduous, more hazardous and more unpleasant jobs should be better paid compared to less arduous, less hazardous or less unpleasant ones, other things being equal (i.e., per unit of homogeneous labour-time).