Ashish Kulkarni on State Capacity Libertarianism, Econ Principles for Everyone, and India's Unique Path Ahead
Episode #002
Introduction
Ashish Kulkarni holds a PhD in Economics from the Gokhale Institute of Politics and Economics (GIPE). Currently, he's an esteemed faculty member at the same institute, where he imparts knowledge in economics, finance, and statistics. Ashish is not just a teacher; he's a mentor at heart. He organizes various events and discussions, enriching students' academic journeys and making economics approachable for everyone.
Ashish's contributions extend beyond teaching. He played a pivotal role in establishing the Centre for Behavioural Economics at Gokhale. His passion for making economics accessible led him to create Econ for Everybody, a platform that demystifies this subject for all.
In our enlightening conversation, Ashish introduces us to State Capacity Libertarianism. This innovative concept re-examines the state's role in economic matters, offering fresh perspectives on policy-making. We dive into the nuances of price controls, unraveling how price floors and ceilings influence markets and affect various groups.
Ashish also shares six essential economic ideas he believes are crucial for everyone. These concepts are not just academic; they're tools for better living and understanding the economic world around us.
Finally, we delve into the intriguing overlap of voter preferences and economic decisions. Ashish offers insightful views on how democracy intertwines with economic choices, shedding light on this vital aspect of our society.
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Audio
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Connect with Us
Connect with Ashish on LinkedIn: https://www.linkedin.com/in/ashishrkulkarni/
Connect with Ashish on Twitter: https://twitter.com/ashish2727
Visit the Econ for Everybody Website: https://econforeverybody.com/what-is-efe/
Follow us on X: https://twitter.com/IndxEcon
Follow us on Instagram: https://www.instagram.com/indxecon/
Follow Vignesh on X: https://twitter.com/hrorq
Learn more about The Inductive Economy and other ContraMinds Labs podcasts: https://www.contraminds.com
Selected Links
Zero to One: Notes on Startups or How to Build the Future
by Peter Thiel
Narayana Murthy on Why Youngsters Need to Work Extremely Hard
Abhijit Iyer Mitra’s Tweet on the 70-hour Work Week Story
The Miracle
by Michael Schuman
How Asia Works
by Joe Studwell
Thomas Sowell and Peter Robinson on Uncommon Knowledge (Intellectuals and Society)
How Adam Smith can Change Your Life
by Russ Roberts
Foundation of Economic Analyses
by Paul Samuelson
We Are Like That Only
by Rama Bijapurkar
Keynes Hayek: The Clash that Defined Modern Economics
by Nicholas Wapshott
The Myth of the Rational Voter: Why Democracies Choose Bad Policies
by Bryan Caplan
Distributive Politics and Economic Growth (1994)
by Alberto Alesina and Dani Rodrik
Zen and The Art of Motorcycle Maintenance
by Robert Prisig
The Original Star Wars Trilogy
Show Notes
00:00 - 00:23 - Cold Open
00:24 - 00:38 - Theme
00:39 - 02:33 - Intro on Ashish and the Episode
02:34 - 03:49 - Ashish’s story (so far) in his own words
03:50 - 04:35 - Ashish’s foray into Economics
04:36 - 16:10 - On State Capacity Libertarianism
16:11 - 23:17 - Size versus Structure of an Economy
23:18 - 27:12 - Removing the Locusts of India’s Past Economic Decisions
27:13 - 29:41 - On the Impact of Scientific Research, Technology, and Innovation on India’s Productivity, Market Outcomes, and Progress
29:42 - 33:20 - What should the relationship between Individuals, Corporations, and Government be like from a Cultural Perspective
33:21 - 35:24 - Ashish as Policy Tsar implementing the Principles of State Capacity Libertarianism
35:25 - 38:50 - On the Swatantra Party
38:51 - 42:26 - India’s Problem with Viewing Profits and Companies as Positive Elements of Culture
42:27 - 49:38 - Ashish’s Curriculum to rethink Economics Education for Indians
49:39 - 55:35 - Which Ideas make it into Ashish’s Economics Curriculum?
55:36 - 57:48 - On Price Floors and Price Ceilings
57:49 - 01:05:08 - On Price Discrimination
01:05:09 - 01:10:46 - Modelling the Future based on Trends of the Past
01:10:47 - 01:18:52 - The Nostalgia of Associating Truth with Models of the Past
01:18:53 - 01:20:55 - On Deidre McCloskey and Joel Moykr
01:20:56 - 01:24:57 - On The Inductive Economy
01:24:58 - 01:27:00 - On Economic Values and Political Preferences
01:27:01 - 01:34:09 - Rapid Fire
1:34:10 - 01:34:55 - Closing
Interesting Ideas
“Me personally, I’d argue that Markets, by definition, work. The idea that you can impose a top-down solution to enable economic transactions is just wrong.”
“Support Markets, but acknowledge the need for a Government would be a way to describe it (State Capacity Libertarianism.)”
“One thing I love asking foreigners is this: Name one thing in you home which has been manufactured by an Indian company.”
“What India’s not been able to do is use it’s state capacity in order to be able to develop global champions.”
“India has neither State Capacity nor Libertarianism, and unfortunately, we end up with the worst of all worlds.”
“Venerating the past, celebrating. the present, but not focusing enough on setting targets for the future. We lack a mission statement.”
“Us Professors of Economics, we tell that it is important to learn economics, but we fail to explain what for.”
“Economics is a means to an end. Economics is what teaches you how to live a better life.”
“Economics isn’t a subject you master. Economics is a subject you apply.”
“Understand that the world and life are non-zero sum games.”
“The Six Core Lessons of Economics (for Indians):
1. People Respond to Incentives.
2. There’s No Such Thing as a Free Lunch
3. The World is a Non-Zero Sum Game
4. If you want to communicate to the world at large, prices are an amazing way.
5. Markets sometime fail.
6. You must, whenever possible, take the long term view.”
“Humanity is defined by the fact that we trade with other humans. No other species gets richer by trading with each other.”
“Price is an incentive wrapped up in a signal.” (from Tyler Cowen and Alex Tabarrok)
“Political Opinions will always supersede Economic Values. That’s the tragedy of not just our times, but also of any society. What will triumph is political necessities not economic virtues.”
“Read and watch as much science fiction as you can.”