Nation at Crossroads - Economics and Populism

If politics is war by other means, populist economics is its very lethal weapon. Like all weapons, however, if not used selectively, it can not only be self-damaging but also become predictable and blunt. Throughout history, economic well-being of subjects has been synonymous with longevity of empires, turning them expansionist in search of greater revenue base. Replacement of empires by nations along with advent of industrial revolution accentuated the exploitation of third world countries in name of colonization. As capitalism went through a trough, economic revivalism emerged as a dominant electoral theme over the last decade. While Germany and France have turned towards socialism, US opted for a blue blooded capitalist who vowed to make them great ‘again’ through aggressive protectionism. Despite having proven right wing Hindu credentials, Narendra Modi fought and won the 2014 elections on the theme of economic development and revivalism (Vikas). Direct and time bound electoral promises delivered through his masterful oratory in mega orchestrated rallies and relentless advertising campaigns in the run up to 2014 General Elections presented him as a Renaissance man. Modi’s key electoral pitch was deliverance from corruption and crony capitalism, wave of which had shocked the country. A restive population (mostly youth) subjected to decades of substandard quality of life finds itself globally interconnected in this digital world and wants instant results. Modi’s aggressive electoral pitch – 2 crore jobs per year and 15 lacs in every citizen’s accounts, among others only ignited their latent emotions. His credible image as a tireless administrator during Gujarat stint convinced people of this incredulous possibility. Since then, Amit Shah has termed these as electoral ‘jumla’ and Nitin Gadakari ascribed them as promises made by a desperate party unconvinced of its win. Modi, himself, when questioned about job creation in 2018, equated selling of ‘pakoras’ as meaningful employment. Never before has the country been so divided on economic lines – while some blame demonetization and hasty implementation of GST for this crisis and corruption investigations as mere distractions, others are convinced that these are initial rocky patches that will pave the way for a ‘New ($5 trillion) India’. Ministers themselves are trying to defend the situation by justifying this as a cyclical dip across sectors and need to ‘look beyond mathematics’ like Einstein.