Non-Coercive or Voluntary Societies
This page is the result of a mind-blowing class I took under Prof. Ron Howard (Dept of MS&E, Stanford University) on "Designing a Free Society." We are unbelievably entrenched in coercive structures than we would like to know. This page is an attempt to look at current events with a different lens, that of a non-coercive, voluntary society, that lives on the maxim, "Peaceful, honest people have the right to be left alone."
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Sunday, November 27, 2005
Subsidies and Taxes: They can take lives
Recently, an officer with the Indian Oil Corporation was murdered by unscrupulous fuel pump owners who were caught by the officer adulterating fuel with kerosene. While society is up in arms against the foul murder, very few are looking at the cause of the crime.
Kerosene is subsidised for the poor and a very small percentage actually reaches the intended audience. Most of it is used by the "fuel mafia" who adulterate petrol that costs Rs 35 a litre, with kerosene that goes for Rs 11 a litre (only for the bonafide poor).
This sounds devastatingly similar to the crisis that occurred in Communist Russia with subsidized bread. Farmers were feeding it to pigs as it was cheaper than pig fodder. So much for subsidies. In this case, it has taken a young, bright officer's life. He may not be the first if we do not understand the insidious nature of subsidies and taxes.
Here is a good analysis by Ila Patnaik that goes deep into this issue.
Kerosene is subsidised for the poor and a very small percentage actually reaches the intended audience. Most of it is used by the "fuel mafia" who adulterate petrol that costs Rs 35 a litre, with kerosene that goes for Rs 11 a litre (only for the bonafide poor).
This sounds devastatingly similar to the crisis that occurred in Communist Russia with subsidized bread. Farmers were feeding it to pigs as it was cheaper than pig fodder. So much for subsidies. In this case, it has taken a young, bright officer's life. He may not be the first if we do not understand the insidious nature of subsidies and taxes.
Here is a good analysis by Ila Patnaik that goes deep into this issue.
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