atcheruti

Bailing Thin Air (India)

In The Bad on October 19, 2008 at 2:46 pm

The Government of India has announced that it might help Air India with Rs. 2,500 crores in “soft” loans.  The argument given by the Government is that as the owner it has the right to transfer the money.  This argument is false for a number of reasons:

Government as owner is a very different proposition than a private owner.  Private owners have three major sources of funding – borrowing from banks and other private individuals, selling equity on the market and selling assets.  The government has a fourth source – taxation.

This is where the problem arises because governments collect taxes on the basis of providing the rule of law and protection of individual rights to their citizens.  It is patently immoral for a government to use money raised on this basis to help companies that is owns.

It is also unfair to other private companies that they should have to make the money which the government then taxes and distributes to the state owned companies.

Next, the claimed ownership of Air India must itself be question.  Air India was started as a private organization which was later appropriated by the government.  As such, the government acted like a thief and any claimed ownership is only that of the de facto possession that a thief has.  It is an immoral and corrupt ownership with the aviation minister as the current receiver of stolen property.

The bottonline is that India is run by mendacious thieves who steal the money the people of India work hard to create and spend it on incompetent, loss making companies owned by the government.

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