Dr. Susmit Kumar, Ph.D.

[Note: I do not get time to read all the recommendations of Niti Aayog. Sometimes I read Niti Aayog’s recommentions in newspapers. Several weeks ago, I read about its recommendation on Coal India and hence I wrote an article on it which is at my website also. Today I read about the issue which I am writing below.]

As per Niti Aayog’s recommendation, non-performing or "hollowed" government schools should be handed over to private players. The private sector would adopt government schools while being publicly funded on a per child basis (“Hollowed govt schools should be handed over to pvt players, suggests Niti Aayog, Deccan Herald, PIT, August 29, 2017). In India, having wide-spread corruption, it would end up with privatization of majority of government schools because the private firms, in the business of running these schools, would be able to easily manipulate the state officials and ministers to privatize them. In majority of advanced countries like the US and Canada, the school system (elementary school, middle school and high school) is still in public domain. The school voucher system is a pet project of US Republican Party under their much-revered “Reaganomics” policy.

I am a product of a government school. Both my parents were teachers in government high schools. Those schools were working fine at that time. Niti Aayog needs to recommend ways to improve the government schools whereas it has made its policy to privatize each and everything in India. If it continues to recommend “Reaganomics”, then it would not take long for India to become a bankrupt country like the US. The US has been surviving by printing its currency, which happens to be the global currency, to fund its budget (and also trade) deficit which a country like India cannot do.

In several states of the US, where Republicans have control over both legislative and executive branches, they have implemented school voucher system. Now President Trump is trying to implement it in entire nation. If Republican Party and also especially Trump implement a policy, then it has to be pro-business, i.e. businesses would make a lot of money with little oversight.

Niti Aayog needs to stop following Reaganomics which is responsible for bankrupting not only the US as a nation, but also some of its states where Republican Party tried to implement major policies of Reaganomics. Since 1980s, it is being religiously preached by nearly all US economists/MBAs and Wall Street. It stands for widespread tax cuts (income tax, sales tax, corporate tax, custom tax, etc.), decreased social spending, increased military spending, and deregulation of domestic markets.

If you will hire a US economist in a firm, he will certainly raise the firm’s share price every quarter by squeezing as much money from the firm (like keeping it lean and thin, i.e. having as few employees as possible) as possible for the shareholders. He would lay off employees even if the firm has profit year after year. In worst case, he would just shut down the firm and import from overseas, mainly China, as the firm can make more money by manufacturing overseas. On the other hand if you will hire the same US economist in a government department, he would transfer government jobs to private sector, to be paid by the public money. He would reduce all kinds of taxes, like income tax, custom tax, sales tax and corporate tax. In the end when he would leave, the department and may be the government also would be at the verge of declaring bankruptcy.

Republican Party went to implement most of “Reaganomics” economic principles in two states (Kansas and Louisiana) in US and they completely destroyed their economies.

Please Google – “Kansas Economy” and see the search results – you can click on this link also to get the same - Google Search - "Kansas Economy"

Please Google – “Louisiana Economy Bobby Jindal” and see the search results – you can click on this link also to get the same - Louisiana Economy Bobby Jindal

As per Bobby Jindal, his Indian parents went to the US not to become Indian-Americans, but Americans. He tried to fully implement Reaganomics in his eight-year (two-term) tenure of governorship in Louisiana which, he thought, would help him in getting Republican Party’s nomination in the 2016 Presidential elections. But after implementation of most of tenets of Reaganomics, including school voucher program, he destroyed Louisiana’s economy to such an extent that he dropped out of the race even before the Republican Party primaries began.

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