Monday, March 15, 2010

An alibi for trade unions to sabotage

If anyone have read Mr.Nandan Nilekani’s book of Imagining India would know how many lawsuits Mr. Manish Sabharwal have been facing in the various aspects. It is more than 1,500!!!

OK, Mr.Manish Sabharwal of Teamlease Services writes in today’s ET about the trade unions tragedy in understanding of free market and financial:

  • “THE trade union arguments of class struggle and tyranny of capital are well-known, ancient and stale. But Indian trade union leaders have now updated their rhetoric with wrong lessons from the global economic crisis — a recent letter to the prime minister said, “The global financial and economic crisis is structural and the current free trade paradigm is a major part of the problem. The financial crisis has shown that free markets and free trade cannot correct themselves.” Global unions are not far behind, with the International Trade Union Federation saying, “We warned business and politicians of dangerous instability in the global economy, but most were more than happy to continue to reap the short-term benefits of the failing model of deregulation. Business and governments created this crisis on their own, but they won’t be able to solve it unless they work with unions to stop the global jobs haemorrhage, kickstart the world economy and put a proper regulatory framework in place.”
  • “Thus, the average person in the world of 1800 AD had the same life expectancy as the average hunter gatherers of 100,000 BC. Stature, a measure of quality of diet and of children’s exposure to disease was actually higher in the Stone Age than in 1800 AD. But modern free market economies are now 20 times better off than the 1800 AD average.”
  • But trade union prescriptions may be worse than the disease because they confuse financial markets with free markets and mirror image the error of market fundamentalist in recommending that the state should substitute for markets or reduce their volatility. This misunderstands the sources of prosperity and job creation.
  • It would be a tragedy if the global financial crisis becomes an alibi for trade unions to sabotage our march of entrepreneurship and poverty reduction.”

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