Tuesday, November 12, 2019

Free Market Economist Prof B.R. Shenoy and German Socialism

The thirty years After Fall of The Berlin Wall is now a major debate around the world. The main comparison being made by many are on socialism vs capitalism, the free market capitalism. It is interesting that the Indian free market economist Prof B.R.Shenoy's article has been widely referred on the east Germany vs western Germany.  Prof Shenoy wrote a article titled "East and West Berlin: A Study in Free vs. Controlled Economy" on August 15, 1960 issue of The Indian Libertarian.

The following are some excerpts of article referred by different writers on the eve of thirty years Fall of The Berlin Wall:


From Rep. French Hill: 30 years after the fall of the Berlin Wall, America can't repeat East Germany's mistakes


An economist from India, B.R. Shenoy, had a first-hand look at the difference between the east and the west. In a 1960 article, Shenoy documented, “The main thoroughfares of West Berlin are near jammed with prosperous looking automobile traffic, the German make of cars, big and small, being much in evidence. ... The departmental stores in West Berlin are cramming with wearing apparel, other personal effects and a multiplicity of household equipment, temptingly displayed.”
Like my visits to East Berlin in 1986, Shenoy continues, “Food shops in East Berlin exhibit cheap articles in indifferent wrappers or containers and the prices for comparable items, despite the poor quality, are noticeably higher than in West Berlin. ... Visiting East Berlin gives the impression of visiting a prison camp.”

From "30 Years After The Fall Of The Berlin Wall, Socialism Is Staging A Comeback"

B.R. Shenoy, a prominent economist in India, noticed the significant differences of the two economic models in the divided city of Berlin in as early as 1960. He observed that in West Berlin, “Rebuilding is virtually complete…The main thoroughfares of West Berlin are near jammed with prosperous looking automobile traffic, the German make of cars, big and small… The departmental stores in West Berlin are cramming with wearing apparel, other personal effects and a multiplicity of household equipment, temptingly displayed.” 

In contrast, when Shenoy went to East Berlin, he saw “a good part of the destruction still remains; twisted iron, broken walls and heaped up rubble are common enough sights… Buses and trams dominate the thoroughfares in East Berlin; other automobiles, generally old and small cars, are in much smaller numbers than in West Berlin… The food shops in East Berlin exhibit cheap articles in indifferent wrappers or containers and the prices for comparable items, despite the poor quality, are noticeably higher than in West Berlin.”
Interestingly, if we leave the specification of location in this paragraph blank, what Sheony observed could have been replaced by any socialist countries mirroring the same scene, whether of China in the 1970s, or Venezuela in 2010. Socialism consistently produces similar devastating results, no matter where it has been attempted.
Shenoy wasn’t the only one who noticed the drastically distinct economic situations of East and West Germany in 1960. People in East Germany were aware of their poverty and political oppression, in contrast to the freedom and prosperity their families and friends enjoyed in West Germany since as early as the 1950s. East Germans wanted out.

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