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Best of BS Opinion: Good people of business; theory side of economics

A defence of business's good for the society, a call for economists to rethink their work models, and a review of what Boris Johnson promised to do for India. Pallav Nayak sums up the views

Pallav Nayak  |  New Delhi 

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A defence of business' good for the society, a call for economists to rethink their work models, and a review of what Boris Johnson promised to do for India. Pallav Nayak sums up the views. Books and recent commentary make it appear that business people are greedy megalomaniacs. But business is human, reflecting the values of a society. Business is a force for good in society, conducted by good people with good results for the national good, writes R Gopalakrishnan. Economists limit their options by reducing their subject to a set of issues that could be modelled. Their warning could lead to misplaced policies of fiscal austerity, like in Greece. Economists should incorporate country- specific factors in their models rather than just applying them in toto, write Soumya Kanti Ghosh and Samir K Jha. The government's proposal to extend the 15th Finance Commission's term by a month and mandate it to suggest ways to fund defence and internal security goes against fiscal federalism. It's the Central government's job to find defence funds. The bill for internal security is shared between the Centre and states.

Should the Commission make suggestions for such tasks, asks Y V Reddy. Immigration is the most contentious issue between Britain and India. Boris Johnson, during the Brexit referendum campaign, promised to open up immigration from Commonwealth countries, but as Prime Minister he’s touting a different plan. The prospects of improved India-UK relations don’t look too promising, writes Hasan Suroor. Financial markets exist to bring people together so money flows where it is needed the most: that's the theory. Businesses in India right now find it difficult to raise capital. It's time for participants in financial markets to be reminded that they are the gatekeepers of people’s money, writes Jigar Mistry. Fundamentals, liquidity, and sentiment—three of the key factors that drive stock markets—are in short supply in India. The best that the market can hope for is government action in terms of reforms that will help bring back investor confidence, says our first edit. Issues in implementing the GST remain unaddressed two years after the tax reform was introduced, said the Comptroller and Auditor General of India recently. Simplifying tax rules will help reduce litigation and improve collection, says our second edit.

Quote of the Day

"Business failures in this country should not be tabooed, or looked down. On the contrary, we should give an honourable exit or resolution to the problem in letter and spirit of the IBC." Finance Minister Nirmala Sitharaman, commenting after Cafe Coffee Day founder V G Siddhartha's death.

First Published: Fri, August 02 2019. 06:36 IST
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