Friedmen in the news

In an article in the Daily Finance there was some information about the infrastuctural situation in China. In the article it tells us how the government is not selling the land but leasing it to the builders and foreign investors. It wants to say that it does not want to ruin the structures created in the past. The central bank is trying to increase the prices of the land. The government has borrowed trillions of dollars from the banks to develope the infrastructure.

Milton Friedmen here would think that the central government should not lease the land but to sell it. Here we see what Milton Friedmen would see seperating political freedom from economic freedom. Here the government is interfearing by not letting the developers buy the land but letting them lease it. Friedmen here would say that the government should act as umpire and only stepping in when there is something wrong. But here they are limiting the amount of development by not selling the land. This way they are controlling development. He would say that the government is controlling the selling. If the govenment will allow the to buy the land, it will be properly utilized and the real prices of the land will be seen. He further adds that if the government will sell the land, the money received can be utilized for many other productive things for the people and also help to reduce the debt of the government.

I totally agree with Friedmen on this. The government should be liberal about the selling of the land. This will indeed help the development of land. The land is expensive as the government is trying to hype the prices by controlling it. The real thing is that the prices are fake. The buildings are empty and there is no one to buy as it is expensive. Here the government is trying to think about the long term effect. I think if they become liberal about the selling of land. There will be an increase in the total cost and the real value will be known by the people. Here friedmen argues in freedom and freedom is to success. If the land is kept in the openmarket there will be competiton which will show the true picture of the product. If the government is the only lender of the land then there will be the situation of monoploy. So I think that if the government allows to sell the land it will help for the betterment of the people.

MARX IN THE NEWS

On September 10, 2010 there was an article in the CNN about the strike by the people working in the public sector companies. The workers working in the public sector and government jobs went on strike because the government decided to reduce the government debt by reducing the monthly salary and wages of the employees and by delaying the retirement date of the employees. The government has also decided to cut the bonuses of the employees. Greek Prime Minister Giorgos Papandreou declared that the government's debt can only be cleared by doing these measures. Mr Papandreou said it will freeze public sector pay, raise taxes and change the pension system, insisted that the proposals would be fully implemented. The workers will see around 10% decrease in their salary. The government is trying to slice of the deficit by hurting the working class.

According to Marx this idea of the government is wrong and unjust. He thinks that government is exploiting the people by making them work more and giving them less wages. They want the workers to work more and pay less to them. He adds that government wants to clear the debts of the country with the help of the money of the poor working class. Marx tells us that this kind of decision of tax rise and cutting wages will affect a lot of middle and working class people's lives. He tells us that by cutting the amount of wages they are alienating them. The government is not paying the right amount of wages the people deserve for their labor in their work. Marx tells us that the government is trying to increase the working limit of the people so they can use the pension money of the employees, which they rightly deserve.

I totally agree with Marx. The government is for the people and if they are not thinking for the betterment of the people then it is completely wrong. The government is trying to clear off the debts which the banks created by using the money of the people, who work hard to earn their money. If there will be a raise in taxes and cuts in the salaries of the people, it will be hard for the people to survive and fulfill their basic necessities. I think the banks who have created this debt should be solely responsible for this. The banks think this as a game, but it is not a game its playing with the peoples life. If the government takes the decision to what it proposes then the poor people will be hit the hardest.