Zohran Mamdani, the Democratic Party nominee for the post of New York Mayor, has announced some radical measures to bring ‘relief’ to the common people facing financial hardship. This will be done, according to him, by providing a number of ‘free’ services for which the ‘rich’ will be accordingly taxed. He has not won the election yet, but as the probability is high, the reaction has already begun. The rich are leaving the city for other states, along with their businesses. The consequences will be immediate as jobs will be lost, as also the taxes paid. Additionally, businesses will be chary of investing in the state. If the situation persists for long, it could have drastic consequences.
This is what happened when the communists took over West Bengal, once the centre of industry in India. By the time the ruling party realised its mistake and attempted to woo business, Mamata Banerjee arrived with her movement in Singur that chased away the proposed Nano factory. Gujarat and Uttarakhand benefited as a result. West Bengal hasn’t recovered, and conditions have become worse with the political mess that exists today.
Wealth generation does not take place by itself. A lot of factors go into preparing an enabling environment. Industrialists and businesspeople must be appreciated for what they do, rather than treated as exploiters and cheats, who need to be brought down. It is possible for people to live in the most difficult circumstances and earn a living by migrating to other states for work, but that is by no means the desired existence. Politics that takes people in that direction does not achieve anything like social justice.
Bihar stands at the crossroads at the present as the ‘socialist’ model that considers the rich as parasites is being strongly advocated by the present opposition, particularly the Congress party. Government jobs are being promised to a member of every family in the state, but there is no mention of how all this will be paid for. Revenue comes from economic activity, but how is that possible without a business-friendly environment? As such, if the people wish to get out of the present state of poverty, they need to rise above short-term interests and vote for freedom of enterprise. In fact, the state government should have an aggressive approach that competes with other states to attract business and investment. One can’t get a larger share of a cake that doesn’t exist.
