Amit Varma is a writer based in Mumbai. He worked in journalism for over a decade, and won the Bastiat Prize for Journalism in 2007. His bestselling novel, My Friend Sancho, was published in 2009. He is best known for his blog, India Uncut. His current project is a non-fiction book about the lack of personal and economic freedoms in post-Independence India.
My first book, My Friend Sancho, was published in May 2009, and went on to become the biggest selling debut novel released that year in India. It is a contemporary love story set in Mumbai, and had earlier been longlisted for the Man Asian Literary Prize 2008. To learn more about the book, click here.
If you're interested, do join the Facebook group for My Friend Sancho
Click here for more about my publisher, Hachette India.
My posts on India Uncut about My Friend Sancho can be found here.
As readers of this blog would know, I’ve long argued in favour of Uber’s surge pricing as an excellent mechanism for matching supply and demand. In a column from last year, I warned against the perils of banning surge pricing:
The most efficient way of allocating resources is to let things find their own equilibrium, their own prices. Price controls are foolish and never work. And the demand for them is based on a sort of a fantasy. Fixing the price of a product at a base price below what the market would pay does not mean that everyone gets it at this price—it just means that a lucky few get it and the others don’t. The fundamental truth about the universe is this: everything is scarce. You can’t wish this scarcity away by agitating or legislating against it.
Now, these fundamental laws of economics apply to everything, not just to Uber. And so Mukul Kesavan, in a column for NDTV, makes the pertinent point:
[S]etting aside Kejriwal’s motives and rationality, the larger question is this: should Uber or Ola be allowed to vary their per kilometre rate at will when yellow cabs and auto-rickshaws are stuck with fixed rates? If, as Uber’s defenders never tire of saying, the app’s algorithms represent the invisible hand of the market, frictionlessly matching supply and demand, why should the individual auto-driver be punished and maligned for asking for more than the metered price?
Shoaib Daniyal makes the same point on Twitter:
Good to gripe about Uber restriction—but why did no one notice the massive cab and auto fare regulation in place for a century?— Shoaib Daniyal (@ShoaibDaniyal) April 20, 2016
Both Mukul and Shoaib are right, though it seems to me that they might both be indulging in whataboutery and creating a straw man at the same time. No one who defends Uber’s surge pricing could possibly support the way the government regulates taxis and autorickshaws. And some of us have written about it in the past—I found this 11-year-old post by me ranting about the licensing of cycle rickshaws in Delhi, citing Parth Shah and Naveen Mandava’s excellent book, ‘Law, Liberty and Livelihood.’ Rather than search for more old posts, though, let me sum up my position here.
In a nutshell, here is how the market for taxis and autos works in Indian cities. The government gives out a limited number of licenses for taxis and autos. This quota does not increase in response to demand. Thus, as demand goes up in relation to supply, you would expect either prices to rise or the supply to rise. The supply is artificially constrained. And the government imposes price controls, so the prices can’t rise either. In other words, if the auto and taxi drivers stick to government-mandated prices, you should expect scarcities. Or you should expect an informal system to develop, where drivers don’t charge the meter rate and instead negotiate with their clients. Both of these are true, to varying degrees, and each of our own cities has developed our informal cultures in terms of dealing with this.
So when an auto guy demands Rs. 400 for a journey that the government mandates should cost Rs. 80, what is the appropriate response? I know some people who will argue that the auto driver, in exchange for his license to drive an auto, has signed a contract with the government that includes those price controls, so he should abide by them. This is a short-sighted argument. I would argue that both the licensing and those price controls are wrong. And I sympathise with the auto driver’s lament that ‘Hey, I’m not allowed to charge a surge price, why should Uber have that privilege?’ How can that not be a valid complaint?
The best way to create a level playing field, though, is to remove those restrictions from all parties, not to impose them on everyone.
Part of the reason Uber and Ola have thrived in India is that they benefited from a need that was created partly by the controls imposed by the government on taxi and auto drivers. The solution is to remove those controls. But removing government controls on the taxi-and-auto industry is higher hanging fruit because of the interest groups involved, and it’s easier to target Uber and Ola, which is what the governments of Delhi and Karnataka are doing. Who suffers in all this? The consumers do. We’re the fish at the table.
The bottomline: Kesavan is right that if we support surge pricing by Uber, we cannot in the same breath curse the local auto-driver for charging ‘extra’. That doesn’t compute.
Once there was a mini-skirt.
A playful child that liked to flirt.
One day it got banned,
A measure that was planned
By a group of petticoats that felt hurt.
Once there was a man named Finch
Who would not give an inch.
With his team in a fix,
He smashed ‘em for six.
‘I decapitate, I don’t pinch.’
Tarun Gogoi is quoted in DNA as saying:
I have not violated the Model Code. I shake my tush on the catwalk exactly as prescribed. You should see me walk the runway. Eyes ahead, chin down, shoulders even—my body is perfectly balanced. I love wearing silk.
Well, okay, he only said the first sentence—I made the rest up. But you could say it follows, eh? ‘Model Code’ has such a nice sound about it…
Once Pappu said something thought-provoking,
He said, ‘Listen up, I’m not joking,
If you give me hugs
I’ll rid Punjab of drugs.’
A reply came, ‘Woh theek hai. But what are you smoking?’
Once there was a man of God.
One day, he declared himself odd
And the next even.
He said, ‘I believe in
My buddy Arvind and his Aam Aadmi squad.’
Once there was a man who was odd.
One day he declared himself God
And said, with a wink,
‘You know, I think
We should aim high when we aim to defraud.’
After I wrote my last column, ‘What Cricket Can Learn From Economics’, my friend Prabhat Kiran Mukherjea commented on Facebook (quoted with permission):
This is the truth that an increasing number of people seem to be realizing, but not so many within the establishment of the game.
This is one reason for the toss being so important in this tournament. The best sides preferred to bat second [in the T20 World Cup], and batting second severely limits the degree to which sides can convince themselves that this sort of batting is appropriate.
This was the day before the IPL began. And now, one week later, the side batting second has won five of the six games so far. (In the one game that the side batting first won, they put up 227, frontloading most pleasingly.)
This is a small sample size, so I won’t force any conclusions upon you, but Prabhat’s insight does seem to hold some food for thought.
I haven’t been watching the games too closely, but one thing I have noticed is that Mumbai Indians are frontloading intent but not talent. Basically, they are attacking from the start, as they should, but taking a pinch-hitting approach by sending out guys like Hardik Pandya and Mitchell McClenaghan at 3 and 4, as in their last game, keeping higher quality hitters like Jos Buttler and Kieron Pollard for later. I’m not sure what to make of this.
At the moment, the teams I find most impressive are those that are frontloading both intent and talent. RCB have Gayle-Kohli-ABD at the top and Gujarat Lions have Finch-McCullum-Raina. Both have decent bowling attacks. So these are the guys I’d back.
Check out this lovely little speech by Ravi Abhyankar on his old friend, Viswanathan Anand. A memorable excerpt:
[W]e often judge an entire community or a nation based on one or two people whom we know. It is called stereotyping. Chess fans in 180 countries judge all Indians, all of us, by watching Viswanathan Anand. Thanks to him they think all Indians are intelligent, modest, soft-spoken, philosophical with a great sense of humour.
Indeed, people who excel in sports often become, by default, brand ambassadors for both the sport and their countries. Because character and sporting talent are both randomly distributed, sporting heroes often tend to be mediocre ambassadors. But Anand
was is exceptional. (For contrast, look at the boorish, arrogant way in which the cricketers of today often behave.) We are lucky to have him.
* * *
Also read: An old tribute by me when Anand won one of his five World Championships, The Man With The Maruti 800.
Once there was a man with a shoe.
He caught a bad case of the flu.
He sneezed so badly,
His shoe flew off madly
Towards Kejriwal when he did ‘Achoo!’
Yogendra Yadav has condemned the shoe attack on Arvind Kejriwal. He has said:
The incident of hurling shoe at Arvind Kejriwal is highly condemnable. This is not the way to oppose anyone.
This kind of anodyne statement is highly condemnable. This is not the way to oppose anything. To make it more interesting, Yadav could have said:
It was a waste of a shoe. There are people in this country who don’t have shoes to wear. Some would even eat a shoe.
The shoe was very poorly thrown. I condemn the poor aim. I’ve been watching it on loop, in slow-motion, on my smartphone for the past two hours, and I would have enjoyed it so much more if it had been aimed properly.
I applaud the shoe-thrower. Let’s get past political correctness, people. Before you condemn the shoe-thrower, ask yourself this: Is there anyone among you who wouldn’t love to throw a shoe at Arvind Kejriwal?
Ok, I’m just messing around, but really, tell me this: wouldn’t some of these hypothetical statements make you feel warmer towards Yadav than his banal ‘I condemn this, I’m so noble’ nonsense?
This is such a great sentence:
The boy told us that he (his father) was a security officer with the Nizam of Hyderabad’s grandson. His claims are being verified.
That first sentence is funny. The second is just sad. Verify?
* * *
I must try telling a traffic policeman sometime, ‘Tum jaante ho mere sasur ke nanad ke foofa ki bhabhi kaun hai?’
Is there anything that cricket can learn from economics? Over the decade-and-a-half that I have written on both these subjects, I’ve come to believe that understanding and applying the principles of economics can enrich the way we live our lives. It follows, then, that all economic concepts can also be applied to cricket.
This is especially relevant at the time of writing these words, when the Twenty20 World Cup has just come to an end. I was delighted that West Indies deservedly won the cup; and saddened that a number of teams, including India, made basic errors because they did not understand one fundamental economic concept: Opportunity Cost.
The term ‘opportunity cost’ was coined by the 19th century economist Friedrich von Wieser, and its simplest definition is: ‘the loss of other alternatives when one alternative is chosen.’ The online site Investopedia defines it as “the cost of an alternative that must be forgone in order to pursue a certain action.” Let me illustrate that with an example.
Say you step out of your office one muggy evening, and have Rs. 300 in your pocket. You feel like drinking a refreshing frappe at a nearby café; and you also feel like taking an AC cab home instead of your normal bus-train routine. The thing is, you only have enough money for one of them. So you go for immediate gratification and get that frappe. The opportunity cost of the frappe is the cab ride home.
Every banal decision in our lives involves opportunity cost. Do I watch TV or read a book? Do I go out with friends or spend time with family? When I choose to spend an evening watching Batman vs Superman, the cost of that decision is not just the price of the ticket and the popcorn, but all the things I could have done with that time.
Understanding opportunity cost is important because it helps us navigate the one fundamental truth about this world: scarcity. Everything is scarce: there is never enough money; or enough time; or enough energy. We have to negotiate scarce resources, which is why all our decisions carry costs. And as the economist James Buchanan said, the concept of opportunity costs “expresses the basic relationship between scarcity and choice.”
Cricket is no exception to these laws of nature. Within a cricket match, there are two kinds of scarcity that a captain or coach must contend with. One is a scarcity of time. The match can only last either five days or 50 overs per side or 20 overs per side. The second is a scarcity of resources. A team can only have eleven players.
Strategy in cricket boils down to negotiating between these two constraints of time and resources. For example, if a team needs 250 runs to win a Test match with two full days in hand, and are 18 for 2 against fired-up new-ball bowlers, they should be more worried about running out of batting resources than about running out of time. That would be a good time for careful consolidation. In contrast, in an ODI, if a team needs 15 to win in one over with eight wickets in hand, they are running out of time but not batting resources. This is a time to hit out and run for everything, and not to preserve wickets.
Every decision carries an opportunity cost. When a batsman shoulders arms to a ball outside off stump, that decision carries the opportunity cost of the runs that might have been scored off it. When he tries to drive it and instead edges it to slip, his action bears the opportunity cost of the runs he might have scored later had he not played that shot. These are opposite actions, and to evaluate which is appropriate in any situation, you need to consider the relative scarcities of time and resources.
Now, here’s where it applies to T20 cricket. Each side gets 20 overs to bat instead of the 50 they would in an ODI; but they still have 11 players! The balance between resources and time has shifted – but many teams haven’t adjusted to this. They apply the ODI innings-building template to T20s: hit out in the powerplay, taking care to consolidate if early wickets fall, then build the innings till the slog overs, then have a slog. This is wrong. It is a waste of resources – and it also allows the bowling side to allocate bowling resources optimally, with specialist death bowlers bowling at the end. What would they do if every over was a slog over?
The teams should adjust to this new dynamic by ‘frontloading’ – a concept I first wrote about in this context a couple of years ago. They should go for their strokes right from the start. If catastrophe comes and four wickets fall in the space of 10 balls, they can dial it back and look to bat all 20 overs so as not to waste the resource of time – but otherwise, they are wasting the batting resources available to them.
The optimal approach in a T20 game is to treat your first three overs as if they’re the last three. On average you will make as many as you would in the last three. Sometimes you will click and the momentum continues. Sometimes wickets will fall, and you can adjust accordingly, and still not make less than you would have with the traditional strategy.
Teams are wisening up to this, and both the finalists of this T20 World Cup frontloaded through the tournament – but India did not, to my dismay. In their semi-final, India made 192 for 2 and the wicket column alone tells you what was wrong with their approach. By losing only two wickets, consider the strokeplaying resources India left unused: Raina, Pandey, Pandya, Jadeja, even Ashwin at 9. Our middle overs were consumed by Ajinkya Rahane making 40 off 35, which was a criminal waste. Consider the opportunity cost: had Rahane been out while on 20 off 18, do you really think that this army of hitters would not have made way more than the 20 off 17 he eventually added?
This is not Rahane’s fault per se: he is a fantastic Test player, but he doesn’t have a fourth gear and this is the best he can do. It’s the fault of the selectors and the decision makers within the team who ignored this key lesson of T20 cricket. (To be fair to MS Dhoni, though, CSK usually frontloaded in the IPL under him.) It is also the fault of those pundits who will praise an innings of 50 off 40 without considering the opportunity cost, and the unused resources in the pavilion.
Teams will learn, though, and T20 cricket will continue to flourish. This is the future of the sport. Indeed, Test cricket might die out altogether, for reasons that can also be explained by economics. As the number of options to spend our time keep increasing, so does the opportunity cost of watching Test cricket. What is five days worth to you?
* * *
The New Face of Cricket (2015)
Once there was a great actor.
A fiscal malefactor.
To save his wealth from harm,
He claimed he ran a farm,
But where the fuck is his tractor?
* * *
Oh, and to change the subject entirely, ToI reports that Amitabh Bachchan has “finally broken his silence” on the subject of his name being in the Panama Papers. He has denied having anything to do with the companies he allegedly set up, and has said:
It is possible that my name has been misused.
As an explanation, that’s on the level of ‘The dog ate my homework.’ Points for chutzpah.
Once there was a ceiling fan
Which gave air according to plan.
Now it’s in hiding
While the junta’s deciding
On Rakhi Sawant’s call for a ban.
So I wrote some limericks for Twitter, and I suppose they’re fun enough to share here:
Once there was a beautiful cow
Whose tastes were kinda highbrow
And then one day
Bharat Mata ki jai
She became a dog and said ‘bow-wow.’
Once there was a man of God
Who was ever so suitably awed
by a) the divine
And b) the bovine
When he saw a holy cow, he’d applaud.
Once there was a wife-beater
Who was a cad, a scoundrel, a cheater
He mastered the arc
of the venomous snark
Now he’s a famous Tweeter.
Once there was a central banker
Who seemed solid as an anchor
He lowered interest rates
opened the floodgates
To inflation. What a wanker!
Once there was a central minister
Who developed a desh bhakti blister
On his big fat palm
& the only balm
was some grease. How sinister!
(Previous posts on cows: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31 , 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61, 62, 63, 64, 65, 66, 67, 68, 69, 70, 71, 72, 73, 74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86, 87, 88, 89, 90, 91, 92, 93, 94, 95, 96, 97, 98, 99, 100, 101, 102, 103, 104, 105, 106, 107, 108, 109, 110, 111, 112, 113, 114, 115, 116, 117.)
The Times of India has an amusing report on how Ashish Nehra was trolled on social media after he revealed that he owned an old Nokia phone and wasn’t even on social media. Which leads one to the question, how was he trolled then? You can write whatever you want on Twitter and Facebook, but the guy’s not on either of those. You don’t have his phone number. So what, you’re going to go stand outside his house and shout snarky one-liners?
There is a deep truth here about how not to get trolled. And there is a deeper truth here that, hard as it may be to believe, predates social media. It is this: people can only get to you if you let them get to you. Your peace of mind is in your hands.
I never thought I’d say this, but I’m beginning to like Nehra, and I’m feeling nostalgic towards Nokia phones. Be still, my beating heart!
What is the one thing that all governments in the world, without exception, are great at doing? I have you scratching your head there, don’t I? ‘Amit thinks there’s something governments are actually good at doing? Is this April Fools Day?’
Here’s my answer: they’re all good at redistributing wealth from the poor to the rich.
I have written before about how all interventions in the free market amount to a transfer of wealth from “the relatively poor masses to a specific relatively rich interest group.” The BJP government just provided us a great illustration of that with some new regulations on e-commerce businesses in India. On the face of it, there’s good news, because they’ve finally ‘allowed’ 100% FDI in online retail. But then there’s this:
It also notified new rules which could potentially end the discount wars, much to the disappointment of consumers. This is because the rules now prohibit marketplaces from offering discounts and capping total sales originating from a group company or one vendor at 25%.
This affects many of the existing players adversely. Big Basket, for example, might have to shut down entirely, says FutureGroup CEO Kishore Biyani. Flipkart and Amazon will also face restructuring problems. But forget these companies, and dig a little deeper to see who really suffers here.
We do. Whatever costs these companies face are passed on to consumers. A decrease in competition also affects the value for money that we get. This is axiomatic. Because of these regulations, we will get less bang for our buck. We are, effectively, losing wealth. Where is this wealth going? For this, think about who benefits.
The BJP has long considered small-and-medium-sized traders to be an integral part of its votebank. They were getting adversely affected by online retail, as consumers obviously gravitated towards whoever gave them more value. Traders are an important interest group for the BJP not only because they represent a votebank, but also because they contribute to the campaign coffers of the BJP. And money buys power for what? To make more money.
These regulations benefit these brick-and-mortar retailers and traders, as they will lose less business than they otherwise would because online retailers will be able to offer less value than they otherwise would.
In other words, this is a redistribution of wealth from poor consumers at large to a specific relatively-rich interest group. (Indeed, given the quid-pro-quos involved, you could argue that the party in power is itself the final beneficiary of this transfer of wealth.)
Another data point on how this government is helping this particular interest group: Gujarat has just passed a bill imposing new taxes on all “goods purchased through e-commerce portals.” You know who this hurts, right? You know who this helps?
Governments always carry out such interventions using noble rhetoric of ‘leveling the playing field’ and helping those poor [insert rich interest group here]s. But the beneficiaries here are not owed a living by anyone, and are not entitled to any money apart from what consumers willingly give them in a free market. The money that the consumers would save because of unhindered online retail, after all, would have gone back into the economy in some form. (For more on this, I refer you to the great Frédéric Bastiat’s famous essay, ‘What is Seen and What is Not Seen.’)
* * *
Here’s my three-fold path to evaluating government policy:
1. Ignore the rhetoric.
2. See who it helps.
3. See who it hurts.
It’s the same story, always, every time. It’s the poor who suffer.
* * *
Also read: ‘The Great Redistribution’, my earlier column on this subject, where I use an example where the protagonist and antagonist interest-groups in question are the reverse of the ones in this post, but it’s still the poor who suffer.
In an excellent piece in the Hindustan Times, which mentions the ‘soft Hindutva’ of the Congress, Samar Halarnkar writes:
The facade [of secularism] is now gone. History tells us that when popular governments legitimise hate (fascism and racism are some examples; closer home, the anti-Sikh and post-Babri riots), it is a matter of time before a country’s majority population follows suit. If — or as — that happens, don’t expect much from the party that was India’s secular, political hope.
I have a small quibble here. The chronology is the other way around. It is not that governments (and parties) legitimise hate, and then the people ‘follow suit’. Rather, it is the people who feel that way to begin with, and drive the political parties to act in the way they do. In the political marketplace, demand drives supply. Parties indulge in the politics of hate or bigotry (or just generally identity) because there is a market for it.
Andrew Breitbart once said, ‘Politics is downstream from culture.’ That is true of India as well. The filth that is there in our politics is a reflection of our society.
As for the ‘soft Hindutva’ of the Congress, they indulged in it even before India got Independence, and they clearly feel that there is a large constituency for it today as well. Consider, for example, this. And this.
Whatever pejoratives we apply to our politicians, they are not fools. If they behave in particular ways, they do so because there is demand for it.
Also read: ‘It’s Cascading Trump, It’s Cascading Modi!’, my column from last week on this subject.
The Times of India reports:
In an incident reminiscent of the Dadri lynching, two Muslim men herding eight buffaloes on their way to a Friday market were beaten up and hanged to death from a tree by suspected cattle-protection vigilantes in Balumath forests in Latehar district, 100km from the state capital, early on Friday.
The deceased, Muhammad Majloom, 35, and Azad Khan alias Ibrahim, 15, were cattle traders and related to each other. Their bodies were strung up with their hands tried behind their backs and their mouths stuffed with cloth.
“The manner of their hanging showed that the assailants were led by extreme hatred,” said Latehar SP Anoop Birthary.
This feels like a nightmare, the use of the term ‘cattle-protection vigilantes’ in a news story about a lynching. What has been unleashed here? Who is responsible for this?
The people in power make responsible noises about reforming the economy and increased federalism and blah blah blah. That is all nonsense. Government is just getting bigger and more oppressive, and stealing more from us by way of taxes and cesses. This government is, in every substantive way, left-wing on economics. Many of my friends, who supported them in opposition to the family firm that ravaged our country for decades, are still in denial about this. On economics, on progress, on growth, these guys are as bad as the previous lot.
And in the social domain, they are worse.
It is natural for mass political leaders to draw on baser instincts of identity and tribalism for their popularity. Reason gets you only so far, so you appeal to the reptile brain. Behind the optics of ‘achhe din’, that is the double game the BJP is playing. But it has a cost. That cost includes ‘cattle-protection vigilantes.’
As Prem Panicker writes with regard to this incident:
This is what happens when you let the genie out of the bottle. People die.
For a proximate lesson from the neighbourhood, look at what Zia-ul-Haq unleashed in Pakistan.
Arun Shourie once memorably called this government ‘Congress plus a cow.’ He was almost right.I would call it ‘Congress plus cattle-protection vigilante.’
There is a difference; and it is a horrifying difference.
* * *
Also read: My column from yesterday speculating on the commonalities between the Trump wave and the Modi wave: ‘It’s Cascading Trump, It’s Cascading Modi!’
We live in strange times. A few days ago, my friend and fellow libertarian, the writer Shikha Sood Dalmia, posted on Facebook: ‘Am I going mad or is the world? In America, I’m rooting for a Democrat and in India I’m defending a bloody communist!’
I was doing the same. In America, the bigoted, nativist, protectionist Donald Trump was dominating the Republican primaries, unleashing invective of the sort that usually only anonymous online trolls dare to express. In India, Narendra Modi’s government carried out a venal persecution of a few university students, based on doctored videos and a fake tweet. They arrested one of them for sedition, who was then beaten up by lawyers in the courthouse as the police looked on passively. My support, instinctively, went to the Democrats in the US; and to the beleaguered communist students in India.
What is going on here? How can a man like Trump be on the verge of leading the party of Abraham Lincoln? Why is Indian politics slipping back into crude tribalism just when India should finally be marching towards modernity? Could there be one answer to both these questions?
A few days ago, the American columnist Glenn Reynolds wrote a piece titled ‘A Trump wave is on the way.’ To explain the Trump phenomenon, Reynolds cited a book by sociologist Timur Kuran, Private Truths, Public Lies: The Social Consequences of Preference Falsification.
Say you are at a dinner party at your boss’s place. The food is terrible: the dal makhni has no salt, the butter chicken has too much tomato puree. Your boss asks how you like the food. You murmur your appreciation, as you’ve seen others on the table do. You are hiding your actual preference in order to fit in or avoid social awkwardness. This is ‘preference falsification’. Everyone at the table may have hated the food—but everyone may think that everyone else loved it.
Preference falsification can have grave consequences. Kuran cites the Soviet Union as an example. The Soviets used the strong arm of the state to clamp down on free speech, which made it hard for people to express their preferences. Even if 99% of the people hated Communism and wanted the government to fall, it would not do so because of preference falsification: these people would not know that so many others thought just as they did. Until suddenly, one day, the public expression of that preference reached a critical mass, and a phenomenon that Kuran called a ‘preference cascade’ took place. From the outside, it might seem that a regime toppled suddenly, overnight, without warning—as we saw throughout the former Soviet Bloc. But while the preference cascade may have been sudden, the preferences themselves were not new.
Reynolds invokes Kuran in the American context, and speculates that Trump’s surge could be the result of a preference cascade. Maybe Trump is articulating views that other would never do themselves in public. (‘I hate foreigners.’ ‘Mexicans are rapists.’ ‘All Muslims should be deported.’ Whatever.) Once they see a prominent man like him say these things, and others rush out in support, they are emboldened to vote for him. Now that they know there are others like them, they join the Trump wave.
Now, shift your attention to India. My view of the last elections until recently was basically this: the BJP got its highest voteshare ever because not only did it mobilize its traditional base – the Hindutva voters – they also attracted other voters who were sick of the UPA’s corruption, who wanted economic reforms, and so on. And now that the BJP was bound to disappoint some of them, it would lose voteshare, compunded by the opposition consolidating against it (as in Bihar). So a desperate party would double down on Hindutva to mobilise its core Hindutva vote.
But what if this is all wrong?
What if the rise of Modi is a result of sudden preference cascades following decades of preference falsification. In Gujarat, for example, what if the majority Hindus bear an unspoken antipathy towards the minority community? They may not express it openly because it’s awkward to do so. Then the 2002 riots happen, and Muslims are ‘put in their place.’ Modi, then chief minister, never openly takes credit for it, but he doesn’t deny his culpability either, and you can read between the lines. Boom, Modi wins the next elections in a landslide—and every state election after that.
Similarly, what if many Indians silently share notions of cultural or religious superiority that are not polite or politically correct to express publicly? (I am attempting dispassionate political analysis here, and this is not meant to be judgmental.) The rise of Modi at a national level could have led to a preference cascade, and though these voters might have come up with many policy reasons for voting for him—‘He will make GST happen’ etc—those may have been rationalisations more than reasons. (Note: I am not implying that all BJP supporters are like this.)
But why now? What suddenly enabled this preference cascade? I have an answer : social media.
Social media exploded in India over the last six years, just as Modi’s national ascent began. Social media lets you express your preferences far more freely than in real life, because you’re either anonymous, or you’re at a physical remove from whoever you’re talking to. So more true preferences get expressed—and more and more people see more and more opinions validating their own preferences. Cascade!
If this is true, then in both America and India, beneath the veneer of sophisticated political discourse, there lies a primal core that cares about more basic things, like race and identity and so on. In fact, maybe the exact same impulse explains both Trump and Modi: the instinctive attraction for a strong leader who will lead our tribe well and shit on all others.
But these are just theories, and they could be wrong, or merely partly right. And there could be other silent preferences out there waiting for their cascade. What could those be? Who will make it happen?
Donald Trump said in the CNN Republican debate a short while ago:
We have to obey the laws, but we have to expand the laws.
Could there be a better illustration of how politicians view laws not as constraints but as tools?
Neelam Katara on Wednesday moved Delhi High Court against the parole plea of Vikas Yadav, convicted of murdering her son Nitish. Stating replies by Tihar officials to her RTI query, Katara told the court that Yadav had “visited” Badaun in Uttar Pradesh several times in the past few months to “appear before court” and each visit had kept him out of Tihar jail for two days. Opposing his parole plea, she reminded the court that her son was killed by Yadav while he was out on parole in a different case.
And Mid Day tells us about an old couple:
Their houses in Thane were demolished for road widening and they were moved to an old building, which is also being demolished for road widening.
A criminal commits a crime while on parole, gets convicted for it, and then gets parole again. The state dispossesses the dispossessed. There is a tragedy in this to which the only appropriate response is to laugh.
And laugh again.
IBN reports that the Karnataka government “is mulling a limit or maximum cap of Rs 120 to be charged on movie tickets in multiplexes.” This is intended to make movies more affordable for regular moviegoers, thus increasing viewership and helping the film industry as well. These are laudable objectives. Who could argue with making movies more affordable for the poor?
In fact, I would argue that the Karnataka government has not gone far enough. Why restrict this benevolence to movies?
I hereby propose that the prices of cars be capped at Rs 80,000. This will help the poor.
Also, the prices of meals at restaurants should be capped at Rs 30. This will help the poor.
While we’re at it, airline tickets should be capped at Rs 300. Why should only the privileged rich be allowed to fly?
Please don’t tell me you object to any of these wonderful ideas. There is no argument against these that don’t also apply to multiplex tickets. Don’t you agree?
(Link via Madhu Menon.)
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On a serious note, here’s a piece by me on price controls: The Price is Right.
This is turning out to be a crazy year. All my life I have raged against the damage that socialism has done to India, with the leftist economic policies of Jawaharlal Nehru and (especially) Indira Gandhi ravaging our country for decades, condemning hundreds of millions to poverty and all its attendant ills. And yet, a few days ago, I was applauding an hour-long speech by a young Communist, sharing the link widely, quoting from it. Kanhaiya Kumar’s speech after being released from prison was a remarkable act of oratory and defiance, combining great passion with fine comic timing. Its content was irrelevant: for the moment, we were up against a greater evil, and we could revisit the speech at leisure.
Well, that time seems to have come. Makarand Paranjape gave a very fine lecture on nationalism at the JNU, with Kanhaiya present, and asked some difficult questions. His speech was nuanced; and it was also about nuance. It warned against a simplistic reading of either history or politics, and pointed out some areas in which, he said, Indian communists could do with some reflection. This included the Communist Party of India’s role (or non-role) in India’s struggle for independence, as well as the many lives that Stalin took.
Right after he spoke, Kanhaiya rose and began the Q&A session by asking Paranjape five questions. One, did he condemn Gandhi’s killing by Godse? Two, did he condemn the violence at Patiala House? Three, did he condemn a particular violent slogan? Four, did he condemn another slogan that was a veiled threat towards Umar Khalid? And five, what political party did he belong to? After Kanhaiya, another gentleman stood up and asked why, while mentioning Stalin, did Paranjape not mention Hitler.
These questions reveal such poverty of thought. (And the very absence of nuance that Paranjape had bemoaned.) Here’s the mistake these gentlemen made: politics does not revolve around binaries of fascism and communism (or left and right). Kanhaiya seemed to assume, if one goes by his questions, that if Paranjape questioned the role of the Left in India’s Independence struggle, then he must surely be a supporter of the Sanghis, and by extension of Godse. If he was questioning the facts in Kanhaiya’s speech, he must surely be a supporter of Modi and the Patiala House goons. The other gentleman implied that by invoking Stalin and not Hitler, by questioning communism but not mentioning fascism, Paranjape had revealed his preference. (Paranjape’s selective mentions were obviously in the context of getting the left to introspect on its history, and that alone.)
These are false binaries. Most sensible people will be against both the extreme right and left, against both the Sanghis and the commies. Hitler and Stalin were both monsters, and their evil sprang not in separate ways from their different ideologies, but from the common core of both those ideologies: the willingness to use coercion and ignore individual rights to reshape society according to their vision. In this, the communists and fascists are identical. They are not at opposite poles. They are the same.
I had drooled over Kanhaiya’s speech when it happened, and I didn’t mind the fact that he was communist. That was, after all, the environment around him, and he probably wasn’t even exposed to other ways of looking at the world. He seemed passionate and eloquent and intelligent, and that was a good starting point. But his questions to Paranjpe seemed to indicate that he wasn’t just unwilling to be self-critical about his beliefs, but is perhaps incapable of doing so. (That is a harsh reading, I know, and I hope I am wrong.)
You might ask here, if I oppose both sides equally, then why have I shown far greater concern (and anger) at the activities of the Sanghis than the commies? Simple answer: they’re the ones in power right now, with a legal monopoly on violence and coercion. Therefore they’re the greater danger. Also, the commies are not a force in India any more, despite this brief moment in the sun (courtesy Modi’s blundering minions). But the Sanghis are growing in power and influence. (I shall elaborate on this in the next edition of Lighthouse, which appears next week in a suitably named newspaper.)
I should add here, as I keep pointing out, that quite apart from the false binary of the two extremes that I have mentioned in this post, thinking in terms of left or right itself is fallacious in the context of Indian politics. All Indian governments have been left-wing on economics and right-wing on social issues, the exact opposite of what a poor beleaguered libertarian like me would like. Mere baal dhoop mein safed nahin hue hai. (In fact, mere baal safed hue hi nahin hai, but leave that aside.)
My earlier pieces on this:
Hou Yifan is currently leading in her Women’s World Chess Championship match against Mariya Muzychuk, and I suppose this is a good time for me to tell you about what happened when they met for the first time. Basically, Maria went up to Hou and introduced herself.
MM: Hi, I’m Mariya.
MM: Er, Mariya.
MM: I just told you. Mariya. May I know your name please?
MM: Mariya, Mariya, Mariya! Aaargh! (Storms off. Harika Dronavalli walks up to Hou.)
HD: Hey, Hou. Who was that?
HY: Some strange girl called Mariya Mariya Mariya.
* * *
A kind reader points me to this:
It isn’t only porn that objectifies women. So does tradition. Check this out.
Why are Donald Trump and Bernie Sanders doing so well, while conventional heavyweights in their parties seem to be taking a beating? I got a sense of that in this Politico analysis of Hillary Clinton’s campaign after New Hampshire which had the strap:
After a devastating defeat, her campaign hopes to rebound with a sharp focus on African Americans.
In similar vein, Shikha Sood Dalmia wrote an excellent analysis of why Ted Cruz won Iowa despite being against ‘the Hawkeye State’s beloved ethanol fuel mandate’. To sum it up:
Cruz assembled a broad but piecemeal coalition of conservative voters by giving each faction something it really, really cared about.
Elsewhere, there is analysis of the four men (Rubio, Kasich, Bush, Christie) fighting for the ‘establishment lane’ of the Republican party.
Do you see what is happening here? Politicians typically think of voters as a market (as indeed they are in the political marketplace) and divvy it up into segments and strategize accordingly. But Trump and Sanders are unconventional politicians whose fundamental message seems to be: ‘This is who I am. This is what I stand for. I won’t tailor my message for anyone. I won’t pander to any group of voters or to special interests. I am different from your typical slave-to-special-interests politician. Are you sick of them too? Vote for me!’
Now, forget the sincerity of this message: what matters is how they come across. And voters are sick of business as usual. This election was supposed to be Bush vs Clinton, but Jeb Bush and Hillary Clinton would be very similar presidents, firmly in the pockets of special interests, albeit different ones. Trump and Sanders clearly would not. (At least, that’s the message.) So that’s the appeal.
You could say it’s the same appeal Arvind Kejriwal had in India.
Now, I strongly oppose Trump and Sanders (and for that matter Kejriwal), because as much as what you stand against, one must also see what you stand for. Trump is whacko in every way. Sanders is whacko on economics. (Kejriwal is Indira Gandhi all over again.) But that is not the point. The point is that conventional politicians cannot hope to capture those constituencies (in their language!) unless they accept that the system is broken to begin with, and communicate that in a credible way. The establishment guys seem to be in denial that the public is turning against the establishment. So this is going to be fun.
The elections in the US are already the greatest reality show ever. It is fitting, therefore, that Trump should be the star.
Pradeep Magazine is unhappy that Pawan Negi got more than a million dollars at the recent IPL auction. He writes:
Ever since a new cricket format and a new business model – the IPL – in the name of sport has been created in India, this accepted rationale of how sport functions is being challenged each passing year. Among the many questions being debated is the relationship of talent with the wages earned and the impact it will have on the very foundations of cricket in the country.
That is where Pawan Negi and most of his tribe become relevant to this debate. Here is a young talent, not sure of his place in the India team, a surprise selection for the T20 World Cup, who has all of a sudden been catapulted ahead of his much superior seniors and showered with riches — and even he can’t understand why.
Magazine implies that Negi has gotten more money than he is worth—and I don’t have an opinion on that. However, consider the larger philosophical question of who should determine Negi’s value as a player? Should it be the mandarins at the BCCI, or the selectors? Should it be knowledgable journalists who have covered the game for years like Magazine himself? Should it be the owners of IPL franchises, an assorted mix of businessmen and filmstars who may not know much about cricket?
The clue to the answer is to ask yourself who has the best incentives to put in the work to determine Negi’s value. Who is actually putting his money where his mouth is? If Magazine makes a judgment about a player that is wrong, it doesn’t matter, journalists get things wrong all the time. There is not much of a reputational downside. If the Indian selectors get it wrong, ditto, they move on and pick someone else the next time, and only a whole bunch of ludicrous selections can affect their position. If the IPL bosses get it wrong, on the other hand, they lose money. Hard, cold cash. For this reason, the incentives are highest for IPL bosses to put in much work in scouting and analytics, and by all accounts they do exactly that. So insofar as there can be said to be a ‘correct’ price for Negi, the IPL auctions are the closest mechanism available right now of arriving at that. (And of course, econ 101, prices are determined by supply and demand, and you need a market for that.)
Of course, the IPL auctions are not a free market. All players would probably get paid much more if spending caps did not exist. Also, Negi would probably have gotten much less if he was first up in an auction where no team had retained or picked a player yet, and he did get lucky that he came up for auction when there was a scarcity of available players like him, teams had holes to fill, and the demand for what he could supply went up. That’s just luck, and it’s fine. If he doesn’t perform, he won’t get paid this much next time.
An aside: Magazine also says in his piece:
In this bizarre game, where players are bought and sold in an auction, is there any cricketing logic that governs these decisions?
This is a common, and badly phrased, complaint: of cricketers being bought and sold like cattle. But that is not what is happening. Their services, as represented by contracts they have willingly signed, are being bought and sold. It is principally the same thing that happens when you check out different employers to see where you want to work, except that the mechanism is different. Cricketers are not being degraded here, but honoured and valued in a much better way than men in board rooms with nothing at stake could manage.
Mid Day has a headline today that says: ‘Andheri station is the hub of crime on Western Railway.’
If you read the article, though, you might come to the conclusion that it’s not the hub of crime, but the hub of rent-seeking.
The Times of India has an intriguing headline up today: ‘Marriages last the longest in north India, Maharashtra; least in NE.’
At first glance, you might think that is good news for North India. It is not. In my view, it shows how socially backward the North still is.
A few years ago, I’d written a column called We Should Celebrate Rising Divorce Rates In it, I’d expressed the opinion that divorce rates were “the single best statistical indicator we have of the empowerment of women.” If I may quote myself:
Rising divorce rates tell us one thing for sure: that more and more women are finding the means, and the independence, to walk out of bad marriages and live life on their own terms. If we judge ourselves as a society on the state of our women – and surely that must be a parameter – then this is good news.
So the ToI report seems to indicate that women are more empowered in the North-East than and North India. I’d love to see if data backs this up. What statistical indicators can stand as a proxy for women’s welfare? Do they show a geographical correlation with divorce rates? These are good questions to ask, though I don’t think ToI will do a follow-up report on this anytime soon.
Sita Sings the Blues: The Greatest Break-Up Story Ever Told
Dev.D doesn't flinch from depicting the individual’s downward spiral
9 across: Van Morrison classic from Moondance (7)
6 down: Order beginning with ‘A’ (12)