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admn. + wealth creation

a) I tried to further edit the first objective of IPI. It now reads:


To host and facilitate The National Debate on System Reform primarily
through the IndiaPolicy Discussion list. This debate would focus on the
production of The People's Manifesto, an internally consistent document
with various levels of detail compatible with the rights of, and integrity
of, each of us as Free Citizens of India. The document would essentially
amount to making explicit the National Social Contract, authorizing
specific tasks to the government and prohibiting it from others not so

b) Some of the key principles of wealth creation have been elaborated in
my 'web book' at


which contains the following opening statement:

	"The source of all wealth: the "free" human head"


Other comments in that chapter (un-edited):

1. Man is an animal.

2. Man has outsmarted other animals to reach such high levels of
reproductive potential (i.e., high population, which I take as a sign of
success of a particular species) through the use of his brain.

3. Man is able to decide upon ideas such as the existence and role of God
on his own, guided, maybe, by religious scholars.

4. Man can find out the truth about the physical world through his own
mind, by following a scientific attitude.

5. Competition between animals (including homo sapiens) is natural.
Anything that curbs competition is harmful to the survival of the species
in the long run.

6. Competition between human beings and nations - within the confines of
laws and rules - is the most efficient method of creation of wealth.

c) Simon's key findings:

I had posted Simon's key findings from his book The Ultimate Resource
(that resource being the human brain) at:


Here are some relevant portions, again. At that time I believe much of
this did not make sense to folks on this list. By now, I hope this makes
more sense.

* The world food situation is not worsening; it has consistently been
improving and will continue to improve.

* Land is not a fixed resource; in fact less of land is being used today
to produce more food than ever before.

* Natural resources, when considered in the engineering sense (or quantity
available) are a meaningless concept. When considered in the economic
sense, natural resources have been increasing over time and their prices
have been consistently falling when measured as a ratio of wages.

	(this is the one which is relevant to the Bihar/Assam case)

* Pollution in the world has been coming down, consistently, as economic
strength increases.
	(my view on pollution is simple: wealth creation requires
	the best technology. The best technology is usually the
	least polluting. There is not much of a conflict between growth
	and clean environment. One of the persons on this list (a quiet
	IAS officer who was earlier the MD of Singareni Collieries 
	and who is doing his Ph.D. on environment and growth in India
	has come to the same conclusion, by the way. Today, in India,
	coal is priced at 62% of world price. Free the market, and let
	economic laws operate. People will immediately switch to other
	fuels which are less polluting. Economic laws force the use of 
	less polluting technologies. In addition, allow for trading in 
	pollution and you have a complete solution : this is simplistic
	but it is more or less accurate.)

* The poor have more children only because it is in their interest to have
more children. The moment their conditions are changed (not by forcing
sterlization down their throat), they cut down on children. In fact, a
part of my own dissertation is related to this.

* Future population forecasts which are made without reference to economic
systems and incentives are therefore destined to be wrong. Most forecasts
have erred towards the excess. For example, in 1970, the world population
in 2000 AD was forecast to be 7.5 billion; that has come down to about 6
billion today.

* Population is not only NOT BAD for growth, but it is often beneficial.

I know that many folks on this list do not read the books I ask them to
read (I have in particularly suggested Simon's Ultimate Resource,
Friedman's Capitalism and Freedom, Hayek's Road to Serfdom, and
Easterlin's Growth Triumphant). There are many other fine books in the
market. I would really recommend that you borrow these books and browse
through them. The principles of wealth creation are explicitly stated in
these books. In particular, Easterlin's book is the most comprehensive
survey of the progress of mankind.


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