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.
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Click here for more about my publisher, Hachette India.
My posts on India Uncut about My Friend Sancho can be found here.
Abhinav Singh has a good post up about how the Government of Maharashtra is proposing to regulate Uber. As you’d expect, there are vested interests behind this: the existing taxi industry, which feels threatened by the new operators, as indeed they should, because the new operators are proving more value to consumers. So they go to the government.
As I’d written here, all interventions in the free market amount to a redistribution of wealth from the poor to the rich. Any regulations here will end up as exactly that. The value that consumers would have gained from the unhindered operation of Uber and Ola will be redistributed away to the older taxi operators. You really don’t need to ask what’s in this for the government, do you?
If this makes you angry, do go sign Uber’s petition. I’m usually skeptical of online petitions and candlelight vigils and so on, but this is a petition directly from one of the affected parties, and there is a non-zero probability that it will make a difference.
An earlier piece on Uber: The Price is Right.
It took the judiciary 24 years to declare that an air conditioner makes a room cool and does not turn it into a cold storage.
Read the full story. I don’t know what to be more outraged at: that our legal system took 24 years to rule that an AC does not turn a room into a cold storage unit; or at the kind of absurd rent seeking and/or extortion that goes on in this country. Both are actually so commonplace that I should save my outrage for something better, such as the unusual October humidity in Mumbai. I spend most of my day in a cold-storage unit, but still…
The Economist begins a piece on Alzheimer’s disease with these two sentences:
Like cancers and heart disease, Alzheimer’s is a sickness of the wealthy.That is because it is a sickness of the old.
Reflect on that a bit, and consider the irony of how bad news can be good news. The proliferation of these diseases stands testament to much our species has advanced. That is awesome—but only till it’s my turn.
Arun Shourie says that the current government is “Congress plus a cow.” The BJP responds by saying that Shourie is no longer a member of the BJP because apparently his membership expired and he forgot to renew it.
That’s the best you can come up with, BJP?
Aside: I think if Rahul Gandhi joined the BJP, the average IQ in the party might actually go up. Narendra Modi has an HR problem, not a media problem.
Viswanathan Anand just drew his round one game against Anish Giri at the Bilbao Masters despite having an overwhelmingly superior position. Why couldn’t he win it? Here’s what Giri had to say:
I think the problem for my opponent was that his position was too good. He could afford to make absolutely any move, and he abused this fact.
I read that quote, and I immediately thought of the BJP and their comfortable majority in the Lok Sabha.
Maharashtra Rural Development minister Pankaja Munde today opined that media should not give “excessive” coverage to crime against women as it instills “energy” and “pleasure” among people with a criminal mindset to try “something new.”
Hmm. I have three things to say:
One: Munde is saying that she wants the media to only report good news because bad news, as per her reasoning here, perpetuates bad actions. This is a convenient position to take when her government is in power. Will she hold the same view when she is in the opposition? I hope someone asks her when that time does come.
Two: I wonder what is the source of her reasoning. What is the proof that the coverage of crimes inspires people to actually commit crimes? What is the study, where is the data? And if there is none, is her wisdom gleaned from years of observation? Who does she hang out with? From a sociological point of view, this is all most fascinating.
Three: There are news outlets that still use the word ‘opined.’ This, to me, is the real scandal in this report.
On the face of it, this is a great idea:
A number of the machines have been installed in the city of Grenoble already and are distributing original stories to anyone who wants one for free.
Each story is printed on paper similar to a receipt and people can choose if they want a story that will take one, three or five minutes to read.
Why do I think it’s a great idea? Because it’s a new way of looking at literature, and of pushing it to people with short attention spans. Why do I nevertheless have reservations? Two reasons. One, since these stories are free, there’ll be quality-control issues. Two, they’re printed on paper, which misses the point, because they could just as easily be delivered on an app to the phone of the intended reader, which would be more convenient for that person.
In the long run, no one will read physical books. As I’ve argued before, a book is just the words an author writes, and the rest is packaging. Those of us who are attached to physical books are just attached to a particular form of packaging we are used to, and because we associate it with the joy of reading. That will end in a couple of generations. And there’s nothing sad about that. What matters is that people read, and not the device they use to do that reading.
You might well ask me at this point what I think of Juggernaut, Chiki Sarkar’s new phone-publishing venture. Well, I think it’s brave and visionary—but I worry that it might be ahead of its time. There is that old saw about how those who look into the future often overestimate the short term and underestimate the long term. I think that might be happening here. Juggernaut’s vision is fundamentally correct, but their pockets have to be deep enough, and their investors patient enough, for them to last long enough to actually succeed as a company.
The Hindustan Times has a report up on a 13-year-old girl who killed a five-year-old boy:
Five-year-old Amit was playing outside his house on Tuesday evening, when the girl lured him away under some pretext, took him to a vacant plot nearby and beheaded him, said Rajveer Singh, inspector at Khair police station.
She also allegedly smashed the body with bricks, wrapped it in a polythene bag and set it on fire. The incident came to light when a pack of dogs dragged out the boy’s half-burnt body the next day.
The girl was taken into custody after Amit’s parents told the police that he was last seen with her. Police said she confessed during interrogation that she killed the boy because his father Rinku, who is a labourer, had raped her after giving her a whitener, to which she is addicted.
This is already disturbing at so many levels: the rape, the murder, the addiction to ‘whitener’. And then the report throws this in:
Superintendent of police (rural) Sansar Singh, however, said investigations are still on as some people in the area suspected the involvement of a ‘tantrik’ in the crime.
(For more on how our government loots us, click here.)
‘I’m not conceited. Conceit is a fault and I have no faults.’ Imagine this quote on an internet meme, alongside a picture of Narendra Modi, looking dapper in that famous pinstripe suit, or maybe a trademark Modi kurta. It would surely get thousands of shares on social media, many from bhakts impressed by the prime minister’s modesty. Don’t rush to share it, though: as one tends to do on the internet, I just misattributed. Those words were not uttered by Modi, or even Oscar Wilde or GB Shaw. The man who said them is former Van Halen singer Dave Lee Roth, with his back against a record machine. But Modi could have said them, could he not?
Please don’t think I am picking on Narendrabhai alone. All politicians are vain. Indeed, one could argue that in politics, vanity is a feature and not a bug. Politicians come to power by selling specific narratives about their excellence; and they can sell it most effectively if they believe it themselves. Success in many fields often begins, comically and ironically, with self-delusion. But politicians have consequences, and there’s nothing comic about that.
One reason that India is still a poor country is the ‘fatal conceit’ of our founding fathers. Jawaharlal Nehru, and his minions and successors, believed that economies were best planned from the top down. An economy is a complex thing, the poor and ignorant masses of India surely could not be trusted to perform this task by themselves, and needed to be directed by wise and benevolent planners. Those who have studied economics or paid attention to history know that this was foolish and wrong.
Economies, like languages, are products of “human action but not human design,” in the words of Adam Ferguson. They function brilliantly on their own, with millions of individuals pursuing their self-interest, and thus increasing the value in the lives of others, for that is the only path to profit. Planning is not only not required, it is an impediment. A central planner can never get a grasp on the huge amount of dispersed knowledge in an economy, and any intervention is bound to lead to a loss in efficiency. This hurts the poor the most: as I illustrated in a previous column, every intervention in a free market amounts to a distribution of wealth from the poor to the rich.
Nehru suffered from a disease that Friedrich Hayek called the Fatal Conceit. His coining of that term was inspired by the following passage in Adam Smith’s The Theory of Moral Sentiments: “The man of system […] is apt to be very wise in his own conceit; and is often so enamoured with the supposed beauty of his own ideal plan of government, that he cannot suffer the smallest deviation from any part of it. He goes on to establish it completely and in all its parts, without any regard either to the great interests, or to the strong prejudices which may oppose it. He seems to imagine that he can arrange the different members of a great society with as much ease as the hand arranges the different pieces upon a chess-board.”
People are not chess pieces, of course, and Nehru and his successors ravaged the economy with their well-intentioned interventions. I won’t recite the litany, but here’s the thing: 68 years after we became independent, 24 after the Soviet Union collapsed, we are still enslaved by a failed philosophy. And we’re still suffering because of the fatal conceit of flawed individuals.
It amuses me sometimes that Modi is considered a right-wing politician. He actually embodies the worst of both left and right. Like his party, and the ecosystem of religious nutjobs that sustains it, he is right-wing on social issues; and left on economic ones. Basically, he is against individual freedom in every domain possible, and thus the exact opposite of me. If you put Modi and me in a test tube, the resultant explosion could blow the earth off its orbit, or at least result in a good rap album. But that is a digression, and it is possible that you have your mouth open because I called him an economic leftist. Well, if a man is to be known by his actions and not his public image, what else can we call him?
I know many economic liberals, bald because of six decades of tearing their hair out, who thought Modi would be a free-market messiah. My ass. Tell me this: exactly what reforms has he carried out that increase our economic freedom? When Modi took over, India was ranked 140 out of 189 countries in the World Bank’s Ease of Doing Business Index: it has since slipped to 142. He has not reformed the labour laws that, for decades, have prevented us from being a manufacturing superpower. The license and inspector raj remains what it was under his predecessors. A litany of what he has not changed would be the same as a litany of what was wrong with our country before he took over.
I have friends in high places who tell me that the system doesn’t allow him to act. But the truth is that Modi suffers from the same fatal conceit that Nehru displayed. He believes the economy needs a top-down manager. He would rather reform a public sector unit than sell it off. When he talks of ‘minimum government and maximum governance,’ as that catchy slogan went, he is speaking of making government more efficient and not at eliminating it entirely from areas where it has no business existing.
His conceit isn’t limited to his economic thinking, though. Look at how the man struts! He may not walk the walk in the sense of governance, but he certainly does in a catwalk sense. Once he was denied a US Visa; now he travels the world meeting the high and mighty. I wonder if he realises, though, that these global leaders give him importance because of the position he occupies, and not the man he is. I suspect he has actually drunk his Kool Aid, and believes the Modi Wave narrative of the last elections. He may be headed for a fall if so.
Look at the numbers from the 2014 general elections again. Our first-past-the-post system made it seem like a wipeout, as the BJP got 6.4 times the seats that Congress did. But they got just 1.6 the vote share of the Congress. It was 31% to 19%, and a 4% swing away from them next time could easily result in a hung parliament. They delivered outlier performances in states like UP, MP and Gujarat, which seem statistically impossible to repeat. And the following things are certain: Since the election, they have not won more supporters than they have lost; the turnout of their supporters is bound to be less the next time around; other parties, clear about what they are up against, will make smarter coalitions to consolidate the non-BJP vote; anti-incumbency will be a factor now that some of the Modi sheen is gone.
Modi behaves like the prime ministership was his destiny and he will win again easily in 2019. But if he doesn’t get his act together, reforming the economy and constraining the lunatic fringe in his party, he could be in for a surprise. India could choose another delusional politician over him, and 2014-2019 could be remembered as The Selfie Years.
Also read: ‘Lessons From 1975.’
I’m delighted to announce that I’ve been shortlisted for the 2015 Bastiat Prize for Journalism. This is an annual prize that aims to “honor the writing that best demonstrates the importance of individual liberty and free markets with originality, wit, and eloquence.” I had won this back in 2007. No one’s won it twice.
The pieces that got me onto the shortlist:
The trophy I most cherish having received is the beautiful candlestick I got when I won the Bastiat in 2007. (It’s inspired by this famous essay by Frédéric Bastiat.) Even if I don’t win another, that one sits on my mantelpiece reminding me that there is always, somewhere a light to be lit. I’ll keep lighting the fire.
In 1975, a Tamilian dressed as a sardar landed up in Ahmedabad Railway Station, in disguise to escape the might of the central government, for whom he was a wanted man. He was met there, and escorted to a safe house, by a 25-year-old who had once sold tea on the platform of that station. Freeze that moment in history – Narendra Modi escorting Subramanian Swamy to his safe house – and contrast it to today. What a long way we have come.
Or have we?
I got the above trivia from Coomi Kapoor’s excellent book, The Emergency: A Personal History. Kapoor was a journalist living in Delhi in those days, and though her book was timed to coincide with the 40th anniversary of the Emergency, it is anyway a timely reminder of the damage that people drunk on power can do, and the threat that such untrammelled power can pose to a nation.
The Emergency began with the filling up of jails. “The number of those in Indira Gandhi’s prisons during the Emergency,” writes Kapoor, “far exceeded the total number jailed during the 1942 Quit India Movement.” This included not just opponents in the opposition parties but also potential ones within her own party plus whoever they damn well felt like. (“The entire Sanskrit department of Delhi University was sent to prison.”) Personal vendettas were quickly settled, and torture was common in the jails. Those close to power were more like despotic rulers than public servants. For example, Kapoor writes, “When an old and respected lawyer of Panipat denounced [Bansi] Lal’s corrupt rule, he was arrested and stripped naked, his face was tarred, and he was dragged all through the streets of the town.” Such behaviour was more rule than exception.
The exploits of Sanjay Gandhi and his coterie were particularly shameful. He wrongly believed that India’s population was a problem rather than a resource, and even more wrongly set about solving it through forced sterilisations. Millions of those took place, and the story of the village of Pipli is particularly illustrative of how they functioned. Hawa Singh, a widower, died there after a botched forced sterilisation, and the villagers refused to have anything more to do with family planning. On hearing that, the government sent “several hundred policemen” who “took up positions around the village.” Shots were fired, and “two women making cowdung cakes outside their huts were mowed down by the bullets.” The men surrendered, and hundreds of them were sterilized.
The press was silenced. Loren Jenkins of Newsweek wrote, “In 10 years of covering the world from Franco’s Spain to Mao’s China, I have never encountered such stringent and all encompassing censorship.” One of the leaders of the opposition, LK Advani, later said that the press “was asked to bend and it chose to crawl.” A permanent (and brutal) dictatorship seemed likely, and we owe much gratitude to the fact that power had made Indira delusional, for she actually called for elections only because she thought she would win. Had she not thought so, she would not have called for them. (Indeed, Sanjay was opposed to the decision.)
To be honest, a political leader does not need to suspend democracy to devastate a country. Even without the Emergency, the vile Indira Gandhi would count as one of the worst leaders in our history. Through a series of disastrous economic policies, many of which her deluded partymen still support, she kept tens of millions of people in poverty, and adversely affected all our lives. There are no counterfactuals, of course, and abstract economic arguments do not have the visceral impact of the kind of stories that Coomi Kapoor’s excellent book is filled with.
Let’s get back to the present. To many, the general elections of last year felt like a landmark event because Modi’s win seemed to mark a final, clean break from everything that post-Independence Congress stood for. However, Modi was not brought to power by a monolithic votebank, but by a collection of disparate groups, all of whom were desperate for change for different reasons. Modi was like a Rorschach test – he stood for whatever you wanted him to stand for, and what you saw in him revealed more about you than about him. Hindutva bhakts saw him as the former RSS pracharak who would finally make India a great Hindu nation; economic liberals saw him as the leader who would finally liberate India from the Leftist policies that had kept us backward all these years; and so on. Some of the expectations from him were contradictory; most were impractical, given the constraints of the way our political economy is structured. But Modi encouraged all of them by discouraging none of them. He didn’t say much on policy issues, stuck to safe bromides, and you never really knew to what extent he supported Hindutva or free markets or yada yada yada. He was strong and silent, and he remained strong partly because he remained silent. You could believe whatever you wanted about him – and because the existing government was so incompetent, you wanted to believe.
If campaigning was like courtship, governance is like marriage. You can’t be delusional about the object of your affection any more: you’re living with the fellow. And while it’s okay if he burps and farts in your presence, it is simply not okay if he beats you up just like the previous guy used to. So a year down the line, how is the Modi government doing?
If you’re an economic liberal like me, Modi has been a disappointment. It is with good reason that people are beginning to refer to this government as UPA 3. Modi has not instituted any far reaching reforms, and the rhetoric of ‘incremental reforms’ does not cut it for me. If a man has gangrene in his legs or cancer in his liver, you do not give him an aspirin and call it incremental reform. ‘Gangrene’ and ‘cancer’ do not need to be managed efficiently, but eliminated brutally. Anyway, this is a subject I’ll elaborate on a future column. For now, I will concede this: Modi’s government is no worse than UPA 2 was. And it’s fair enough to wait out the five years they have been given before passing judgement.
It is in the domain of personal freedoms, though, that Modi has let the country down. Much of this is due to petty vindinctiveness, straight out of the Indira Gandhi playbook. Consider how Teesta Setalvad has been harassed after Modi came to power, with the latest salvo being the cancellation of the license of her NGO. (Why should any organisation need a license from the government anyway? Wasn’t Modi the Messiah supposed to do away with this kind of nonsense?) Consider the government’s harassment of NGOs like Greenpeace, and the offloading of Greenpeace campaigner Priya Pillai when she was on her way to England because officials felt she would give India a “negative image” there. Go online, search for videos of the recent Patel uprising in Ahmedabad, and see the brutality with which the police crack down on common citizens. (The Gujarat government also banned the mobile internet during this time, as well as Facebook, Twitter and WhatsApp.) Consider all the nonsense the fringe elements on the Hindu right are getting up to, and the silence of the government on these issues – the same silence you would get from Indira very time she was confronted about the antics of her psychopathic son Sanjay.
Modi has not declared Emergency or jailed his opponents, but this approach to power does remind me of 1975, and make me wonder. Many of the prominent political actors of today played small roles in that particular production. Arun Jaitley spent the years of the Emergency in jail. In the hundreds of hours of solitary contemplation that he no doubt had, what did he think about? When the young party worker Narendra Modi guided Subramanian Swamy to his safe house, what did they talk about? Was it about how power always corrupts, the necessity to impose limits on it and the tragedy that politicians in India sought to rule rather than serve? Or did they simply say to each other, “Just wait. Just wait till we are on the other side, and we are the ones in charge.”
I suspect it was the latter. And what a loss that is.
Never talk to me about profit,’ Jawaharlal Nehru once said to an industrialist friend of his. ‘It is a dirty word.’
Nehru’s sentiments were understandable in those times, and his sentiments were noble. India had just rid itself of the British, who had come to India ostensibly to do business and had left it impoverished. Nehru, who had played a notable role in the freedom struggle, had spent his formative years in England learning from the Fabian Socialists, as well as from Howard Laski, the Marxist professor at LSE who had a greater influence on modern India than Mahatma Gandhi, through students such as Nehru and VK Krishna Menon. The Soviet Union seemed to be a model to admire, America itself vastly expanded the role of the state after the Great Depression, and the top-down command-and-control economy must have seemed incredibly attractive to Nehru. The center had to hold. The profit motive was evil. Those exploitative capitalists had to be kept in check.
It is not fair to judge Nehru in hindsight, and he was right about other things that mattered. But he was wrong about this. Profit is the secret behind all prosperity. And it is a distrust of the profit motive that has kept this country poor.
The fundamental fallacy that Nehru committed was of looking at the economy as a zero-sum game. By that thinking, if someone is winning, someone else must be losing. If the industrialist makes a profit, someone else is getting exploited. But this is not the way the world works. All trade is a positive-sum game; and indeed, it is not possible for one person alone to make a profit in a transaction.
I am fond of illustrating this by citing what the writer John Stossel calls the Double Thank-You Moment. When you buy a cup of coffee at a Cafe Coffee Day, you say ‘thank you’ when you are handed your cup of coffee. And the cashier says ‘thank you’ when you hand over your money. This double ‘thank-you’ illustrates that both of you benefited from the transaction. Both of you profited.
This is, simply put, the root cause of prosperity. Every single voluntary transaction that takes place makes both parties better off, and increases the sum total of value in the world. Equally, every impediment that anyone places on the ability of consenting adults to trade freely with each other reduces the notional value in the world, and is an impediment to growth. It stands to reason, then, that trade should lead to prosperity, and that economic freedom should be correlated with a nation’s wealth. Does the data bear this out? You bet it does.
First up, I urge you to consider this chart. (Here’s the source.) It shows the wealth of the world as a flat line for centuries, until 1800. And then, boom, the world economy takes off in a spurt that economists call the Hockey Stick of Human Prosperity. It correlates perfectly with the explosion of markets across the world, of double-thank-you moments.
But it doesn’t take off uniformly across countries. Free markets are a necessary condition for prosperity, so let me now draw your attention to another chart. This one, from the Index of Economic Freedom 2015 brought out by the Heritage Foundations, shows a clear correlation between economic freedom and the wealth of nations. The freer you are, the wealthier you tend to be. (Also, the freer you are, the faster you grow.)
Forget the data, you say. Capitalists are exploitative. What about the low wages paid by Walmart? What about sweat shops run by large multinationals in third world countries like Bangladesh, where workers toil jn inhumane conditions? Isn’t that the profit motive at work?
Yes, it is. And I deeply admire Walmart and every company that runs a sweatshop in a poor country. That is because the people who work in Walmart and in those sweatshops do so because it is the best option open to them. They are not fools. They are choosing to work where they do because they deem all other alternatives to be worse, and those evil capitalist behemoths should actually be thanked for actually providing them an option that is better than the best option otherwise available to them. We condescend to those workers when we say they are being exploited. (Indeed, it is possible that we are exploiting them by using them to feed our sanctimony.)
This doesn’t apply to slavery and trafficking, of course, for by free markets I mean markets where consenting adults trade freely under the rule of law. Also, let us not conflate rent-seeking and profit-seeking. Many large companies get together with government to put restrictions on markets so that their market share is protected from competition. Such protectionism hurts the common consumer, and amounts to a redistribution of wealth from the poor at large to rich special-interest groups. Big companies are often the biggest enemies of free markets, and capitalism often unfairly gets a bad name because it is confused with crony capitalism – or ‘crapitalism’ as some call it.
To sum up, the profit motive is not something nefarious, but is actually noble. You can only profit in a free market by improving someone else’s life. And the more you profit, the greater the good you do in the world, the more the value you create. Profit, indeed, is the purest form of philanthropy.
I must admit here the very slight, teeny-weeny possibility that I am being unjust to Nehru. Maybe he had a mischievous glint in his eye when he said that profit was a ‘dirty word’. I can imagine him sidling up to Edwina Mountbatten at a party, gently putting his hand on her waist, and whispering to her, ‘Edwina, my dear, would you like to, ahem, profit with me?’ That certainly could have led to a double thank-you moment.
(For more on how our government loots us, click here.)
India is a poor country. We were poor when we became Independent in 1947, and while other countries have lifted themselves to wealth in that much time, we’re still poor. And government policies are the reason for our continuing poverty. For the last 68 years, since a group of white-skinned rulers handed over power to a bunch of brown-skinned rulers, all the governments that have run India have done one thing incredibly effectively: they have redistributed wealth from the poor to the rich.
Yes, you read that right: I’m not talking about redistribution from the rich to the poor, which itself would be an ineffective way of fighting poverty, but from the poor to the rich. They have taken money from the poor in our country and given it to the rich, and, as if to troll us, they have done this in the name of fighting poverty. For that reason, while there are some very rich people in our country, on average, as our GDP-per-capita indicates, we’re still a third-world country.
Let me take a recent event to illustrate what I mean. A few weeks ago, the central government announced that it would not allow foreign direct investment in retail e-commerce. Business Standard reported: ‘Minister of State for Commerce and Industry Nirmala Sitharaman last month met executives of Flipkart and Snapdeal and representatives from the Confederation of Indian Industry (CII) and the Federation of Indian Chambers of Commerce and Industry (Ficci) to assess the impact of FDI on Indian e-commerce companies.’ The government then decided that it needed to protect the local players, and therefore did not allow FDI.
Do you see what happened here? Who benefits from competition? The consumers do. The greater the competition, the more value for money the common consumer gets. This is axiomatic. Our local retailers—all the people consulted by the ministers—were scared that their bottomline would be affected by this competition, so they successfully petitioned the government to block it. The result: the consumers will get less value than they otherwise would; the local retailers will make more money than if competition was allowed. In effect, it is a transfer of wealth from a large, dispersed group of consumers to a small, relatively wealthy interest group.
All tariffs have exactly this effect. Let’s say I like to buy widgets. Local manufacturers sell me widgets for Rs 100 each. Foreign manufacturers, for a variety of reasons from technology to labour, can sell me widgets for Rs 80. But the local manufacturers petition the government to put a tariff on imports, and the government puts a Rs. 30-per-widget tariff on the foreigners, so they don’t bother coming over. The net result: each of us loses a notional Rs 20. Who gets that money? The local manufacturers. What just happened? The government redistributed wealth from the relatively poor masses to a specific relatively rich interest group.
Governments that impose or continue tariffs will do so in the name of protecting the domestic industry. But at whose cost? The French economist Frédéric Bastiat once wrote a great essay called ‘What is Seen and What is Not Seen’, which speaks of the hidden effects of such actions. What is seen here is the good done to one specific group of people (with money usurped from a poorer group, which by itself is surely morally wrong). What is not seen is what the consumers would have done with that money. They would have spent it or invested it, and it would have gone back into the economy, creating growth and employment. But the potential beneficiaries of that are not even aware of what didn’t happen.
Subsidies are also redistribution of the reverse-Robin Hood kind, if in a more obvious way. The wealth taken from the poor is not in terms of marketplace prices or value for money, but is taken directly from your taxes. And while the poor may not file income tax returns, they pay taxes too. Every time your maidservant buys a bag of salt or the beggar at the nearby traffic signal buys soap, they are contributing to the Rich Interest Group Benefit Fund. This is not just poor economics – it is morally wrong.
Here’s the upshot: All interventions in free markets amount to a redistribution of wealth from the poor to the rich. Anything that reduces competition or artificially raises costs for the consumers amounts to just this. Restrictions on FDI, tariffs, licensing processes or regulations that make it harder to open a business or to run it, subsidies; and so on. The interest groups to benefit may differ in each case, and will often include rent-seeking forces within the government, but always, without exception, the wealth will flow, in relative terms, from the poor to the rich.
So why don’t we protest, you ask, given that we are a democracy? Well, think about the winners and the losers here. The costs of such redistribution are dispersed among more than a billion of us, and the benefits are concentrated to a few. If Rs 2 from the taxes you paid last year went as a subsidy to the widget industry, you won’t even know or care. The widget industry, making millions from the accumulated Rs 2s, will care, and will lobby aggressively, contribute to party coffers, buy off politicians and bureaucrats – whatever it takes. That is why government policy is not dictated by the people at large, but by the aggressive lobbying of hundreds of interest groups, out to make a killing at the expense of the poor. That is why government grows and grows, and so many constraints are placed on the only force that can make us wealthy: economic freedom.
A few days ago, I got ready for a meeting, switched on my Uber app, saw that there were no taxis available in my area, and remembered an earthquake.
More than two decades ago, when I was in college in Pune, an earthquake ravaged the region of Latur. I got together with some friends to collect money for relief efforts. We decided that we would go to the affected areas ourselves to figure out the most efficient way of using the money. We hitched a ride on an ambulance of paramedics headed there with medical supplies. While in the affected district, we stopped at a village where around half the houses had been destroyed, and only one grocery store was still standing. “They are the only place one can buy groceries from,” a resident complained to us bitterly, “and they have tripled their prices.” That made me very angry. “Exploitative bastards,” I thought to myself, “feeding off the misery of others.”
Today, I know that my reaction was misplaced – just like the complaints of everyone who’s taken issue with Uber’s dynamic pricing. In case you missed the controversy, cabs and autos in Mumbai recently went on strike to protest against the competition they got from the likes of Uber and Ola. Since people had to get to work, the ironic short-term beneficiaries of this were the very parties they were protesting against. So when demand for a particular product or service goes up and supply can’t keep pace, what happens? That’s right, the prices go up, and Uber uses a mechanism called dynamic pricing which is an incredibly efficient way of arriving at an appropriate price for their service based on demand and supply. So commuters who switched on their Uber apps in the morning were informed that the base price had gone up by as much as 5x. Naturally there was much outrage and shouts of ‘exploitation’ and ‘predatory pricing’, and Uber, rattled by the bad press, announced that they would suspend dynamic pricing for the duration of the strike, and operate at their usual base fare. They put this into effect, and I woke up the next day, switched on my app, and found that no Uber cab was available.
Do you see what happened here? When demand goes up relative to supply, two things can happen. The price can go up to reflect the growth in demand; or, if the price is fixed, there is inevitably a shortage of the product or service in question. In Uber’s case, with their dynamic pricing disabled, all their cars quickly got booked, and whichever customers switched on their apps after that found that there were no cars available. Their need could have been urgent: they may have needed to rush to the airport to catch a flight they couldn’t afford to miss; or take an aging relative to hospital; or head to town for a make-or-break meeting. But even if they were willing to pay more, too bad.
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.
* * *
Speaking of prices, another company that disrupted an industry, Amazon, has announced that it will pay authors on its Kindle direct publishing program according to pages read, not units moved. This is an opt-in program, applying only to self-published authors on their DP platform, but authors on my Facebook timeline have already reacted with horror. Their instinctive aversion to the idea is understandable: commoditization of art and all that. As in the movies, they can imagine a publishing executive in a suit telling them to clip their novel by 30% and have only one 8-letter-word-per-100,000 because more than that diminishes page-turning rate. The horror! But those fears are overblown. I think this development, like almost everything Amazon has done with regard to books, is visionary and good for authors.
Look, there isn’t, and shouldn’t be, a central politburo that decides how much authors get paid according to some high-falutin notions of literary merit. Authors get paid, quite simply, based on copies sold, and how many people want to read them. Literary authors accept that they will not make remotely as much as those who write airport potboilers. That’s just fine, because if they’re good at what they do, they’ll find an audience that appreciates their work anyway.
Amazon’s new system achieves the same end—paying writers according to the demand for their writing—with greater granularity. Good literary writers will still make money – I devour every word Alice Munro or Anne Tyler write—because their work is compelling. But if I get bored with a writer after reading ten pages of his work, I don’t see why he deserves any more of my money than those ten pages represent.
It’s somewhat silly for an author to have a sense of entitlement, and believe that other people should pay him money even if he can’t produce work they want to read. As silly, indeed, as for an Uber user to feel entitled to the service at a lower price than others are willing to pay, at the expense, therefore, of the service provider. Such arrogance is priceless.
If Walt Whitman was born in Delhi he’d write something like this:
O CABBIE! MY CABBIE!
by Walt Bhainchod Whitman
O Cabbie! my Cabbie! our fearful trip is done,
The taxi’s conquered every pothole, Gurgaon has been won,
Home is near, what’s this I hear? My cellphone madly ringing.
I pick it up, it’s my better half, and lo, she starts singing:
‘O heart! heart! heart!
So long you’ve been away!
Take a little longer, love
Pick up the groceries on the way!’
Thank you for the recent love song, She Mooooves Me, which you wrote and dedicated to ‘all the cows on Planet Earth’. Me and my friends here in England have it on loop on CowTube. There are few humans we like—you lot enslave us, molest us for milk every morning, and kill us and sell our meat after that. So we’re not very fond of your species. But you, Amit, we have always liked you, because you understand us, you’re a good listener, and you’re so so cute! But this is not mere fanmail. I am unwell right now, hugely under the weather, and I need to rant. And like I said, you’re a good listener. So here goes.
I won’t go into the details of my illness with you, except to say it’s not just a mere cold. Serious shit is going down, and I’m in a lot of pain everyday. And how am I being treated? With sugar pills. Sugar fuckin’ pills. Oh yes, you may pick your jaw up from the floor now, you don’t want a snail entering while you’re all astonished. (Happened to Lucy once.) This is for real, so let me quote from a report last month in the London Telegraph.
The report says: “British organic farmers are being forced to treat their livestock with homeopathic remedies under European Commission rules branded ‘scientifically illiterate’ by vets. Although homeopathy has been branded as ‘rubbish’ by the government’s Chief Medical Officer Dame Sally Davies, organic farmers have been told they must try it first under an EU directive which came into force last year.”
Yes, that’s right. There are serious issues with my liver, I need antibiotics badly, the pain is excruciating, and my owners are being forced to treat me with bloody sugar pills! You’re a rationalist, Amit, I know you feel my pain right now. (Well, not literally, for that you’d need my liver, but you know what I mean.) That some humans believe in this nonsense is understandable, you’re a nonsense species, and by all means do whatever you want to yourselves. But why force it on us cows?
I first got to know homeopathy was bunkum thanks to your writings. First, there’s the science behind it. The idea of homeopathy is that the substance that is to be used to treat the patient is so diluted that it is unlikely that there is a single molecule of the substance in the pills the patient ends up consuming. As Martin Gardner once said, it is “equivalent to taking one grain of rice, crushing it to a powder, dissolving it in a sphere of water the size of the solar system, with the sun at the centre and the orbit of Pluto at the outside, and then repeating that process 2 million times.” My mind boggles at imagining the scale of this: not the solar system, but the idiocy.
Naturally, homeopathy doesn’t work. The standard scientific way of testing medicines is via double-blind placebo-controlled tests, and homeopathy has repeatedly failed those. I have read accounts of this in two great books you recommended, Ben Goldacre’s Bad Science and Trick or Treatment by Simon Singh and Edzard Ernst. I no longer have copies of those books – let’s just say that they’ve been chewed and digested – but I recommend them to all those who wish to argue with me on the subject.
My friend Lucy is not into books, though – that’s why her brain is full of grass. And she said to me the other day, “Well, I had indigestion from accidentally swallowing a snail, and I was given homeopathy, and now I’m fine. So surely it works.” I get this all the time, which proves that some cows can be as thick as some humans. So I explained to Lucy the fallacies in such thinking.
First, I told her about the placebo effect. Sometimes, even if you’ve been given a pill containing no medicine at all, if you think you’ve been given proper medicine, you start responding to it. In Bad Science Goldacre wrote about an American anaesthetist during World War 2, Henry Beecher, who had to perform an operation on a soldier with “horrific injuries”. Morphine wasn’t available so he used salt water. And it worked! The placebo effect is an incredibly powerful and well documented effect, which is why when new medicines are tested, they are tested against placebos. Only if they do better than placebos are they considered effective. Homeopathic medicines always fail these tests, because hey, they’re just sugar pills as well.
Another phenomenon I explained to Lucy is regression to the mean. Many ailments work in a natural cycle, where you get worse and then get better, quite on your own. This is true for colds, backaches, migraines, and also Lucy’s indigestion. But if you are inclined to believe that a particular treatment works, you will take the medicine, get better on your own, and ascribe it to the medicine. This is the Confirmation Bias at work, and also that other one, I forget the name, you write about it often, which mistakes correlation for causation.
Anyway, so I patiently explained all this to Lucy, and you know what she did? She said ‘Whatever.’ Then she swished her tail, turned around and stepped into a pile of her own dung. I’d do a facepalm if I could.
Anyway, enough ranting. I just want to thank you again for your song. If you’ve visiting England sometime, please come over to the farm and meet the girls, we’d be sooooo happy. We can’t offer much in terms of hospitality, but I’ll gladly share my sugar pills with you.
Dorothy (but you can call me Dotty, tee hee).
* * *
And from XKCD:
(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.)
My next installment of Lighthouse, ‘Letter From a Cow’, which will be published over the coming weekend, references the song below, written by me and dedicated to all the cows on Planet Earth.
SHE MOOOOVES ME
I wake up in the morning.
Girl besides me is snoring.
I quickly finish yawning:
Humans are so boring.
I head out to the farm.
The weather is divine.
The world is full of charm
And my true love is bovine.
I’m walkin’ with a cow,
And talkin’ with a cow,
Just rockin’ with a cow,
Cuz she mooooves me.
I’m singin’ with a cow,
And swingin’ with a cow,
Bells ringin’ with a cow,
Cuz she mooooves me.
Yeah she mooo-mooo-moooooves me!
I love the way she grazes
And how she chews that cud,
How she purposefully lazes
And walks gracefully on mud.
Her temperament is cool.
Just see her languid walk.
Even if you’re a fool,
She listens when you talk.
I’m walkin’ with a cow,
And talkin’ with a cow,
Just rockin’ with a cow,
Cuz she mooooves me.
I’m singin’ with a cow,
And swingin’ with a cow,
Bells ringin’ with a cow,
Cuz she mooooves me.
Yeah she mooo-mooo-moooooves me!
[Guitar solo, repeat verse 1, chorus, then fade to ambient farm sounds.]
(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.)
This is the 42nd and last installment of my fortnightly poker column in the Economic Times, Range Rover.
This is the 42nd and final installment of Range Rover, and I end this column at an appropriate time: after around five years of being a professional poker player, I have stopped playing fulltime, and am getting back to writing books. I am the first winning player i know to walk away from this game – but more than the money, I cherish the life lessons that poker has given me. As I sign off, let me share two of them: the first accounts, to some extent, for my love of the game; the second is the reason I am leaving it.
Poker is a game centred around the long term. The public image of poker is based around hands we see in movies or YouTube videos, and the beginner fantasizes about specific events, spectacular hands in which he pulls off a big bluff or deceives someone into stacking off to him. But once you go deeper into the game, you learn that short-term outcomes are largely determined by luck, and your skill only manifests itself in the long run. You learn to not be results-oriented but process-oriented, to just make the optimal move at every opportunity and ignore immediate outcomes. You learn, viscerally, for much money and pride is involved, the same lesson that the Bhagavad Gita teaches: Don’t worry about the fruits of your action, just do the right thing.
Needless to say, this applies to life as well. Luck plays a far bigger part in our lives than we realise: the very fact that you are literate enough to read this, presumably on a device you own, means you have already won the lottery of life. Much of what happens to us and around us is outside our control, and we would be foolish to ascribe meaning to these, or to let them affect us. Too many players I know let short-term wins and losses affect them, and become either arrogant or angry. This is folly. Equanimity is the key to being profitable in poker – and happy in life.
Why am I leaving a game that has given me so much? There are many reasons: Poker is all-consuming, and impacts one’s health and lifestyle; my real calling is to write, and I am pregnant with books that demand labour; but one key reason is that poker is a zero-sum game.
In life, you benefit when others do too. When two people transact a business deal, they do so because both gain value from it. When lovers kiss, the net happiness of both goes up. Life is a positive-sum game. But poker is not. You can only win if someone else loses, and the main skill in poker is exploiting the mistakes of others.
Now, all sport is zero-sum and consenting adults play this game, so this should not be a problem—except for the fact that poker lies on the intersection of sport and gambling. Gambling addiction destroys lives and families just as drug or alcohol addiction do, and i have seen this happen to people around me. I can sit at a poker table and calculate equities and figure out game-theoretically optimal ways of playing—but where is the nobility in this when my opponent is not doing likewise, but is a mindless slave to the dopamine rushes in his head? In the live games I played, I sometimes felt that there was no difference between me and a drug dealer: we were both exploiting someone else’s addiction.
When I write books, i have a shot at enriching myself by enriching others. This can never happen in poker. And so, my friends, goodbye.
* * *
Addendum: You can read all the archives of my column on the Range Rover homepage. Here, briefly, are some I enjoyed writing.
My first column, The Bookshop Romeo, talks about the importance of thinking in terms of ranges, and its applicability to life. The Numbers Game and The Answer is 42 are about the importance of mathematics in poker. Make no Mistake, Finding Your Edge, The Colors of Money, The Cigarette Case and The Importance of Profiling deal with some basics of exploitive poker, while The Balancing Act, Miller’s Pyramid and Imagine You’re a Computer talk about game-theory optimal (GTO) poker. Om Namah Volume is about the importance of putting volume.
I had great fun writing this series of pieces of probability, randomness and the nature of luck in poker and in life: Unlikely is Inevitable; Black Cats at the Poker Table; Running Good. I fed into my interest in cognitive psychology and behavioural economics for those pieces, as I did for these: The Interpreter; Poker at Lake Wobegon; Keep Calm and Carry On; The Endowment Effect; Steve Jobs and his Black Turtleneck.
Beast vs Human and The Zen Master Speaks deal with temperamental aspects of poker. The Game Outside the Game is about the politics of access, and Raking Bad about the ill effects of excessive rake. Sweet Dopamine talks about poker as an addiction, and The Dark Game and The Second Game of Dice expand upon this subject using personal experience.
This is the 41st installment of my fortnightly poker column in the Economic Times, Range Rover.
The next time you are sitting at a poker table, faced with a big decision for a lot of money, take a few seconds off and think of Steve Jobs, naked after his morning shower, walking to his closet to pick out the clothes he will wear for the day. Does he tank over what to wear? No, he doesn’t. He just takes out a black turtleneck, a pair of jeans, and that’s his outfit for the day. Through the last years of his life, in fact, that was his outfit for every day.
Jobs wasn’t lazy or devoid of imagination. He had just cottoned on to a phenomenon called Decision Fatigue. Basically, neurologists have found that every decision you take tires you out a little bit, and robs you of energy. Through the day, Decision Fatigue accumulates, as you get more and more pooped. So if you want to use your energy optimally, the smart thing to do is to automate all trivial decisions, or get them over with quickly, so you can bring all your powers to bear on the big decisions that really matter. Basically, don’t sweat the small stuff.
Jobs did this by wearing the same outfit every day, as does Mark Zuckerberg, thus eliminating one early decision at the start of the day. You could do this by having the same breakfast every day (or letting someone else decide for you), parking in the first available spot instead of searching for the perfect one, and so on. One way to deal with Decision Fatigue is by Satisficing. When I shop, for example, I don’t look for the perfect item to buy, but pick the first adequate one. This is Satisficing: making quick and easy decisions instead of perfect ones. If I’m buying a TV or a T-shirt or a portable hard drive, I won’t agonise for hours over all the different models available, but just pick the first one that seems satisfactory. I’ll devote more scrutiny to big ticket items that really matter—like buying a house, for example.
Consider the implications of this for poker. Poker players typically play sessions that last for many hours, sometimes upwards of 15, which is tiring in itself. They have to stay focussed, observe the action even when they’re not in the hand, and in live games, where such things matter, interact with others for the sake of conviviality. Add to this Decision Fatigue. In any session, you will face dozens of decisions, some of them big ones, increasing the likelihood of your getting exhausted as the session goes on, and thus more prone to errors. So what is one to do?
The obvious answer is to automate. At a beginner level, if you have a starting hand chart for every position, at least those preflop decisions won’t consume energy. As you grow into the game, you can have default decisions for more and more situations. But there is one huge problem with playing like this: you run the risk of becoming predictable, and therefore, exploitable. As you rise up the stakes in poker, you need to start balancing your ranges. This involves a huge amount of work off the table, so that decisions are easy while actually playing. I think of it as akin to a batsman spending thousands of hours in the nets till it becomes reflexive for him, in a match, to lean into an elegant cover-drive against a half volley outside off. Test cricketers don’t actually make a decision on every ball when they are batting; they just follow their reflexes. They have to hone their second nature.
This is why online grinders, whether they are playing cash games or tourneys, multi-table with such ease. Most decisions are automated. Of course, since most of us are playing exploitive poker instead of GTO, we also have to be observant for mistakes to exploit—but even this becomes second nature with practice and hard work off the tables. So here’s my takeaway from this: to reduce decision fatigue at the tables, and to become a better player overall, you need to put in lots of work off the tables. If you do that, there’ll be many black turtlenecks and jeans ahead of you, and Steve Jobs won’t be naked no more.
I saw the strangest thing the other day. Out on the road, there was a sleek Lamborghini with a man in a dhoti-kurta at the driver’s seat. His hands weren’t on the wheel. Instead, he held a whip in his right hand, which extended out of his window, and he was whipping a couple of bullocks tied to the front of the car. The engine was off; the bullocks were pulling the car.
Now, okay, this is perhaps a bit too weird even for India, and I confess that I didn’t see exactly this. But I did witness something very close. I was watching the IPL.
Twenty20 cricket is a relatively new form of the game which makes new demands on the teams that play it. Like a bullock cart driver who has just been given a Lamborghini, the men who run the teams and play for them haven’t quite come to terms with this. So they continue to whip the bullocks. When one-day cricket was born, teams played it much like they would a Test match—consider Sunil Gavaskar’s 36 not out in 1975 through 60 overs, and while that is an extreme example, consider the low par scores of those times. Eventually, players adapted. Even Gavaskar made a thrilling World Cup century before retiring, and par scores crept up until, as I wrote in my last installment of Lighthouse, they crossed 300 in the subcontinent, which was once an outlier score and not the norm.
Similarly, in T20 cricket, teams have basically adapted their ODI approach to this shorter format. So maybe they tonk in the powerplay at the start, then they consolidate and set a platform, then they tonk again towards the end. They often have freeflowing openers, but leave their hard-hitting maniacs, like Kieron Pollard of Mumbai Indians, to bat at the end. This is a flawed approach, because T20 is not just a modified version of ODIs, it’s a whole new format with its own imperatives.
First of all, consider that T20 cricket is played with the same number of players in each side as ODI cricket is: Eleven. This is not a banal point, but crucial to understanding how to approach the game. If T20 games were played 8-a-side, you would be justified in structuring your innings as you structure an ODI innings. But with 11 players, you have extra resources for the time given to you. Your task is to make sure these resources are not wasted, and are optimally used. If the hardest-hitting strokeplayer in the team routinely gets only four or five overs to bat, you are screwing up somewhere. So what should you do?
I’d written a piece after last year’s IPL for Cricinfo where I’d laid out what I felt was the biggest tactical advance of last year’s IPL: Frontloading. Basically, King’s XI Punjab decided to snort at the concept of building a platform, and just sent their hardest hitters upfront and treated every over as sides would usually treat overs 16-20. They attacked from the outset, with Glenn Maxwell, David Miller and George Bailey coming in at Nos. 3, 4 and 5, and sometimes if an early wicket fell, Wriddhiman Saha coming at 3, but also to tonk. Their frontloading ensured that batting resources were not wasted, and this approach got them off to an excellent start in the tournament. In contrast, Mumbai Indians consistently sent out their best hitter, Kieron Pollard, with just a handful of overs to go, and he had nowhere near the impact he could have had. Kolkata Knight Riders started poorly, but then adapted, dropped Jacques Kallis the accumulator, frontloaded the hitting, and things worked out. They also had a better bowling attack than Kings XI, and deservedly won the IPL.
This year has been bizarre. King’s XI, far from continuing to frontload, has reverted to traditional structures of building an innings, sending in Maxwell later than they did last year and even, at the time of writing this piece, dropping him from the side. Mumbai Indians haven’t learnt from their past mistakes, and continue to save Pollard for a dash at the end. They would be better served if Pollard and Corey Anderson batted 3 and 4, in whatever order, with Rohit Sharma opening. But no, they don’t use their elite V12 engine. The other day Mumbai Indians, with Pollard and Anderson mostly at the crease, added 81 runs between overs 16 to 20, but lost because the team scored too slowly in the first 15. What a waste. Imagine if they had scored those 81 runs between overs 6 to 10 instead. How nicely that would have set up the innings. Their chances of doing so between overs 6 to 10 were the same as between 16-20, but the upside of going for it early was far more and the downside the same. Keep the bullocks for later, if the engine fails.
The idea is not just to frontload resources but also to frontload intent. Every side doesn’t have a Maxwell or a Pollard. But whoever goes out there should attack, attack, attack. Sure, if a Starc or Malinga is on fire, play that one guy out. But otherwise go for it. Not only does it ensure you don’t waste batting resources, it also ensures that soft overs in between by lesser bowlers are not wasted. Batting strategies are so predictable that fielding captains can plan how to use their resources well, keeping their best restrictive bowlers, like Malinga, for the end of the innings. But what can they do if you’re going at them all the time?
The one team that has gotten frontloading right in this IPL so far is the Chennai Super Kings. Brendan McCullum and Dwayne Smith play every over like it’s the 18th of the innings, and Suresh Raina and MS Dhoni, two outstanding strokeplayers, follow at Nos. 3 and 4. This is exactly right, and good captaincy. Of course, Chennai also have an excellent bowling attack, which is why they’re among the favourites in the IPL year after year. All things being equal between teams, though, frontloading makes the difference. So when you have a Lamborghini, drive the damn thing.
This is the 40th installment of my fortnightly poker column in the Economic Times, Range Rover.
Once upon a time, a poker player went to a Zen master in the hills, Quiet River, and prostrated himself at his feet. ‘Sensei Quiet River,’ he said, ‘I have something I need to ask you. I am a poker player. But I am not as good as I can be, despite studying both the mathematical intricacies of the game and the psychological tendencies of others. Something is missing. I need you tell me what it is?’
Sensei Quiet River just looked into his eyes.
‘Here,’ said the poker player, whipping out his smartphone. ‘I have all my hand histories here. Let me play them for you. Please tell me my leaks.’ He switched on the hand replayer on his phone and held it up in front of the Sensei. But the Sensei ignored it and kept staring into the player’s eyes. Many seconds passed. Finally, the player understood.
‘I get it now,’ he says. ‘The problem is not in the math or the psychology. The problem is me.’
Sensei Quiet River smiled.
In the last installment of Range Rover I wrote, ‘We lose money in poker not because we think too little but because we feel too much.’ I promised to elaborate on it this week, so here goes.
Poker is a challenging game not because of mathematical complexity but because of human frailty. You can master it in a technical sense: you can understand equities, put people on ranges accurately, balance your own ranges, and so on. You will never be perfect at this, but you can easily be adequate for the games you play. But technique is half the story; temperament is the other half.
Even if you know all the right moves to make, you still need to have the discipline to detach yourself from the short-term outcomes of hands or sessions and play correctly. It’s hard to do this: we are all emotional creatures, casting a veneer of rationality on our reptile brains. We get tired, upset, elated, impatient; we give in to greed, sloth, arrogance, and, most of all, anger. Every poker player is familiar with a phenomenon called ‘Tilt’? What is tilt? The sports psychologist Jared Tendler, writer of a brilliant book called The Mental Game of Poker, describes it as “anger+bad play.” We get angry, so we play bad. And why do we get angry?
In his book, Tendler identifies different kinds of tilt. There’s Injustice Tilt, where you feel you are getting unluckier than others, and it’s just not fair. There’s Revenge Tilt, where you take things personally against certain other players at the table (maybe they gave you a bad beat, or they 3b you frequently). There’s Entitlement Tilt, where you feel you deserve to win more than you are, because you’re better dammit. And so on.
Our emotional condition at any point in time can cause us to play sub-optimally, even when we know what the optimal play is. This is most likely to happen at times of stress, and poker is an incredibly stressful activity, because there is always lots of money involved – not to mention ego. We often equate our sense of self and our well-being with the money we have – though we shouldn’t – and having it taken from us can destroy our emotional equalibrium. It isn’t easy, as that saying goes, to keep calm and carry on.
Let me now end this column with a tip. The next time you are at a poker table, facing a difficult decision, buffeted by emotions, here’s what I want you to do: Imagine that Sensei Quiet River is standing by your side. What would he do in your place? Do exactly that, and see him smile.
This is the 39th installment of my fortnightly poker column in the Economic Times, Range Rover.
Being human sucks in many ways, but one of its great advantages is that little thing called the imagination. We can imagine away our frailties and pretend to rise above our cognitive limitations. We are all Walter Mitty and Mungerilal, so this following thought experiment should appeal to you. Imagine that you are not a human being, but a computer designed to play poker perfectly and take the money of puny humans. Now tell me: what would change in the way you play the game? (Pause and think about this before you go to the next para, please.)
If you were God, you would know what cards your opponents held and the rundowns of all future boards. But as a computer, you wouldn’t need that information. You would play game-theory optimal (GTO) poker, with a strategy guaranteed not to lose in the long run regardless of the hands others might have or what they might do with them. Most of us humans, on the other hand, play exploitive poker, for which the hands and tendencies of others do matter. Let me illustrate the difference.
You are heads up in a hand, and on the river make a pot-size bet. Your opponent is getting 2 to 1 to call, and needs to be right one in three times to break even. Now, the aim of GTO poker is to make your opponent indifferent to calling or folding. You will do this by having what is known as a ‘balanced’ range jn this spot. Because you are offering him 2 to 1, a balanced range here would have 1/3 bluffs and 2/3 value hands. (Note that the composition of a balanced range depends on bet sizing, or the odds you give the opponent. If you bet half-pot, giving him 3 to 1, a balanced range would have 75% value hands.) Being balanced in any spot means that your opponent has to play perfectly to break even—and if he calls too much or folds too much, you make money. Basically, you cannot lose, and are thus likely to win.
Unless you’re playing high stakes online cash games, you’re unlikely to ever actually need to play GTO. The cash-game poker I play is exploitive poker. I try to identify mistakes my opponents tend to make and exploit them. In the above example, if my opponent tends to give up too often on the river, I will increase the number of bluffs in my range. If he is a calling machine and never folds, I will have 100% value bets in my range. While this is exploitive, this is also exploitable. By deviating from GTO to exploit his mistakes, I offer him (or someone else) a chance to exploit me. If i start bluffing more because he folds too much, he, or another player, could increase their calling frequency against me.
A computer would aim to play GTO poker, and it would do this by building balanced ranges for every spot, starting from preflop, across streets and board textures. This is incredibly complicated, and humans can just come to an approximation of this. This is useful, for understanding balanced ranges help us understand our own mistakes, and those of others, even if we don’t actually intend to play GTO poker. But my question at the start of this piece was not supposed to turn into a lecture on game theory. Indeed, my own answer to that question has nothing to do with game theory or exploiting others.
In any game I play, I tend to assume, correctly so far, that I can acquire the technical knowledge to beat the game. My big leaks are temperamental ones. If i was a computer, I would not feel any emotion, and would thus avoid all the pitfalls of being human at a poker table. We lose money in poker not because we think too little but because we feel too much. I shall elaborate on this in my next column.
One trend that never goes out of fashion is lamenting the present, claiming that things were better in the past. Logically, one would not expect this to be the case in sport. After all, most sports seem close to their zenith at any given point in time. Usain Bolt is way faster than Carl Lewis, Federer and Nadal would whoop McEnroe or Becker’s ass, Magnus Carlsen would probably beat Bobby Fischer. Better technology (including in training) and more accumulated knowledge about the past make this inevitable. The one sport that seems to defy this sort of analysis, though, is cricket.
We cricket romantics still speak of Don Bradman as the greatest batsman ever, of the West Indies pace quartet of the 70s and 80s as the best fast bowling attack, and we still sigh when we remember India’s famous spin quartet. Recently, a poll named Viv Richards, from the neolithic age of one-day cricket, as the greatest ODI player ever. And while batting records have been taken apart recently, including in this World Cup, cricket tragics ascribe this to a shift in the contest between bat and ball, the heavier bats which enable top edges to go for six, batsman-skewed field restrictions, and so on. This is a valid point, but it’s not the whole truth. My contention is that the game has evolved significantly in the last few years, and—please don’t burn me at the stake for saying this—Twenty20 cricket has been a hugely positive influence on the way cricket is played.
T20 cricket gets a lot of flak, and while much of the criticism about its commercial structure is justified, I don’t agree with any of the criticism about its cricketing value. Test cricket snobs complain that T20s are just a slogfest, but this is far from true. Bowlers have been hugely influential in the IPL, and every side that has won has done so because its bowlers stepped up and influences the game. Think Narine, Malinga, Ashwin, Warne. Just because bowlers go at 7 an over instead of 5, as in ODIs, doesn’t mean the fundamental nature of the game has changed. The goalposts have shifted, the parameters have changed, but the game is still a contest between bat and ball. If it wasn’t, the sides would just go out and have a slog-off against bowling machines, and teams would pick 11 specialist batsmen.
What has changed, though, is that batting has evolved to adapt to the challenges and constraints of a 20-over-a-side game. (And bowling has changed as a response to this.) When one-day cricket began in the 1970s, for example, games were 60-overs-a-side and batsmen approached their innings must as they approached Test matches. The traditional virtues of the game were still applicable, and a run-rate of 4 through an innings was acceptable. If a side scored 250, you’d say their batsmen did well, and not that the opposition’s side’s bowlers did a great job, as would be the case today.
One-day cricket underwent a change through the 90s, as sides began to exploit the field restrictions at the start of the innings. Opening batsmen before Sanath Jayasuriya had gone berserk, like Mark Greatbatch in the 1992 World Cup, but the Sri Lankans of 1996 were the first to treat it as a philosophy, not a tactic. The change in approach saw generally higher scores in ODIs, and a knock-off effect in Tests.
The T20 revolution, and specifically the IPL, turbo-charged the game. Twenty20 did not deserve any of the disdain it was greeted with: if we don’t diss football games for lasting 90 minutes or tennis matches for getting over in an afternoon, then why mock a three-hour game of cricket? Cricket is a beautiful sport, and the T20 format offers all the drama and nuance that any other sport in the world possesses. And because of the constraints of time, the format demands more out of both batsmen and bowlers than cricket did earlier. In T20 cricket, you have to optimise. To understand the creature that emerges from this, consider the insanely talented Glenn Maxwell.
The most remarkable graphic I saw during this World Cup was one the broadcasters showed after a cameo by Maxwell in this World Cup. It showed where bowlers bowled to him and where he hit them. Most of the balls pitched on off or outside disappeared on the leg side; most of the balls pitched straight or on leg were whacked on the off side. This is not because he got randomly funky. There was a method to his madness.
In the past, batsmen would carry a mental map of where the field was, and adjust to the ball according to that. Now they adjust to the field before the ball is bowled, and dance around the crease and set themselves up accordingly. If point and third man are up and a spinner is bowling, Maxwell is very likely to set up a reverse sweep, which in his hands is an orthodox stroke, like a cover drive or pull, with a similar risk-reward ratio. It doesn’t matter if the ball pitches two inches outside leg; he’s already decided where it’s going to go. And he plays like this from ball one. In that graphic in question, the bowlers actually bowled to their field; and he batted to that field too.
Players like Maxwell and AB deVilliers, who is known as a ‘360°-batsman’ because he can hit the ball to any part of the ground and plays as if the stumps aren’t there, have transformed the game with their inventiveness (and enormous talent), playing strokes that Richards, or even the recent Tendulkar for that matter, couldn’t have conceived. And they are not alone. Every team is optimising, and we have seen the knock-on effect this has had on ODIs in this World Cup, where, I submit, batsmen not only scored more runs than before, but also batted better. You will see Test matches transformed by this as well. I predict more successful fourth-innings chases of 300-plus in the next ten years than in the last 30. Hold me to this.
Having said this, I would not argue with measures by administrators to tilt the balance more towards bowlers. One could mess around with field restrictions, and I certainly think the 10-over limit on how much a bowler can bowl should go: there aren’t corresponding limits on batsmen. But please, do not say that there is no longer a contest between bat and ball. The two main contenders for the man-of-the-series award in this World Cup were bowlers (Starc and Boult), and a bowling performance got MOTM in the finals (Faulkner). When Mitchell Starc spears in that yorker at 150kmph to Brendan McCullum, after setting him up with two fierce dot balls, you know the game is doing just fine.
A Telegraph report tells us about a study that reveals that more and more men are growing beards because they are “feeling under pressure from other men and are attempting to look aggressive by being more flamboyant with their whiskers.” There are evolutionary reasons for this; apparently, we are wired this way.
You will note, now, that there were more beards in the New Zealand team than in the Australian one in today’s World Cup final. Does this mean that one side was pretending to be macho and signalling aggressive intent, while the other side, um, didn’t need to?
Also, what about Sir?
While on beards, a friend of mine insists that beards make men more sexually attractive. If this is so, I shall certainly never grow a beard. I can hardly cope with the adulation I already receive, and more would be overkill.
This comment of mine was published a couple of days ago on Scroll.
Imagine Jerry Seinfeld is performing in India. A packed house is in attendance, getting rapturous as Seinfeld gets into his flow. And then, a bunch of hecklers from the Bajrang Dal disrupt the show. Seinfeld takes the interruption gracefully, but the hecklers won’t let him finish, and he eventually makes one last joke and then leaves the stage. What would your reaction be to this incident?
I would be aghast, and very clear on who was in the wrong: the hecklers. If the Bajrang Dal chaps protested that Seinfeld’s content was offensive to them, I’d say, “Ok, leave the premises then. And protest elsewhere by all means.” If they argued that they were expressing their right to free speech, and that protesting at their heckling was akin to censorship, it would be mildly ridiculous. To me, there would only be one guilty party here, the Bajrang Dal, and three wronged parties: the organisers, whose property rights were infringed upon by the hecklers; Seinfeld, who was not allowed to finish; and the audience, which did not get their money’s worth.
If you agree with my argument above, you would also agree, I suppose, that the principles involved hold regardless of the parties involved. So if I was at a Baba Ramdev show, and he expressed views repugnant to me, such as an attack on homosexuality, I would be disgusted, and the appropriate response to that would be to walk out and express my disgust elsewhere. But I would not have the right to disrupt his speech, and the organisers of that show would not have an obligation to offer me their platform for my views. In terms of principles, my heckling Ramdev off the stage would be exactly as wrong as the Bajrang Dal forcing Seinfeld to stop performing.
I write this, as you’d have guessed, in the context of the comedian Abish Mathew being booed off stage while performing at a Delhi college, and the subsequent defence of the hecklers in some quarters. Mathew is not Seinfeld or Ramdev, but the same principles that applied to their hypothetical hecklers apply to his. The hecklers in question were not expressing their right to free speech by disrupting the show. Free speech applies to one’s own space and to public spaces: I cannot enter someone’s house, abuse him, and protest when I am being thrown out that he is infringing upon my right to free speech. He is not; on the contrary, I am infringing upon his property. (In fact, as I argue here, the right to free speech is a property right.)
The hecklers should have protested outside the venue, or after the performance. To disturb the performance was graceless. To use another example, if I am at a Kishori Amonkar concert and am getting bored, I will quietly walk out. It would be incredibly boorish if I heckled her and made her stop. To argue that Mathew is not Kishori Amonkar, or that Seinfeld is classy and Ramdev is a bigot, is missing the point. The same principles apply.
This is the 38th installment of my fortnightly poker column in the Economic Times, Range Rover.
The answer to the Ultimate Question of Life, the Universe and Everything, according to The Hitchhiker’s Guide to the Galaxy, is 42. The computer that came up with this took 7.5 million years to calculate it, though the question for this answer wasn’t known. Well, I have a guess as to what it was.
My guess is that Douglas Adams was a keen connoisseur of Pot Limit Omaha, and he got into the following hand with his friend Richard Dawkins. Adams had T985ds, spades and diamonds, and the flop came K67, one spade and two diamonds, giving him a humongous wrap, a flush draw and a backdoor flush draw. Dawkins potted, Adams repotted, Dawkins jammed, Adams called. Dawkins had AAKKds, clubs and hearts, for top set. ‘Ha,’ he exclaimed, ‘I have the nuts. Take a hitchhike, my friend!’
‘Now, now, calm down,’ said Adams. ‘It is in your genes to be excitable, I know, but I must inform you that your top set is not the best hand here. Indeed, I am actually the favourite to win here.’
‘You’re kidding me,’ said Dawkins, as he looked at Adams’s cards in growing horror. ‘So what percent of the time do I win this hand?’
And that’s the question, dear reader, to which the answer is 42.
As it happens, the turn gave Adams a straight flush, at which point Dawkins became a militant atheist, as indeed am I, but that is not a matter on which I shall dwell today. Instead, I wish to bring up the role of numbers in poker. I have written before on how poker is a numbers game, and to master the game, you must master the math. In my last column, I wrote about the hard work involved in teaching yourself the game, much of which involved number-crunching. In response, my friend Rajat, a keen player with a recent live tournament win under his belt, tweeted: ‘I’m an old-school player, terrified of numbers. What advice for me?’ This is a reaction many people would have, so here’s what I have to say.
The mathematical laws that govern poker, and indeed, the universe, are not ‘new-school’ inventions. Just as an old-school physicist before the time of Newton was subject to the laws of gravity, so is poker subject to mathematical laws, rewarding those who master them. Indeed, ‘old-school’ players knew their math, as you will note from the vintage of David Sklansky’s The Theory of Poker (1983), and the musings of Doyle Brunson, a man who knew his fold equity, in Super System (1979). Since the internet boom in poker, the math behind the game has been far better understood, to the extent that a talented player who ignores the numbers is like a prodigious swimmer trying to cross an ocean but just refusing to get on a bloody boat.
All decisions in poker come down to the math of estimating pot equity and fold equity and making the best decision possible. You may use your ‘reads’ and psychological insights to get a better sense of your opponent’s range, and how likely he might be to act in a particular way, but all these merely help you come up with the right inputs. The answer, in the end, lies in the math. And here’s the thing: if you ignore the math, that doesn’t mean the math goes away. No, it’s working away in the background, like the laws of nature, ensuring the survival of the fittest – or those who adapt the best, as Dawkins would say.
If you have been winning at poker without caring too much about the math, it is either because you’re playing really soft games, or you’ve been lucky. The way the game is growing in India, both of these are bound to change. So here’s a thought for you: It is a truism in poker we must not be results-oriented, and should just focus on making the right decisions so that we show a profit in the long run. But how do we know what the right decisions are? The answer lies in asking the right questions – as Dawkins did to Adams.
While reading Tapan Raychaudhuri’s memoir, The World In Our Time, I came across this most excellent Bengali “local ballad” of Barisal from the 19th century. Basically, Raychaudhuri’s great-great-grandfather, Rajkumar Sen, had once been “poisoned by his Brahmin guru and a co-conspirator, one Mr Mahalanabish (no relation of the famous statistician and progenitor of Indian planning).” Here’s a translation of the ballad that sprung up in response, which Raychaudhuri tells us is “still current in that area”:
In the village of Kirtipasha lived a famous Babu,
Rajkumar by name.
What can I say of his noble deeds
Wonderful to recall.
His Diwan, Mahalanobish,
A black sheep born of decent parents
Conspired with the guru
And put poison in his sherbet.
Oh, the bastard, the bastard whose sister must be screwed!
As for the sun-dried rice-eating Brahmin?
Cut open his arse
And take out the sugar, butter and ghee
The scoundrel had eaten all these years
Oh the bastards, the bastards whose sisters we must screw.
I suppose it could be said that this is an illustration of rape being an instrument of power more than a crime of lust—but that’s hardly a revelation. Funky song, though, isn’t it? Mahalanobish the bastard indeed!
Things I learned today: Wittgenstein went on Keynes’s honeymoon.
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)