Dr. Susmit Kumar, Ph.D.

In many recent articles, I have warned against the adverse impact on our economy caused by the imposition of disastrous “Reaganomics” economics policies by Niti Aayog, due mainly to the impact of “US-imported” economists at the helm of the administration. On May 20, 2017, I sent a 37-page summing up article, “Niti Aayog: Why does it need new direction and a new leadership?” (available at my website, www.susmitkumar.net) to 200+ personnel at Niti Aayog and to another 100 top bureaucrats in Finance, Ministry of External Affairs, and Commerce & Trade departments. The dispatched comprehensive article contains 14 charts and 7 tables with enough economic data to provide documentary proof of my critical points regarding the ongoing economic mishandling of Niti Aayog.

As per a newspaper report on the resignation of Dr Arvind Panagariya published on August 2nd, 2017 (First NITI Aayog vice chairman Panagariya quits, to return to teaching in US, TNN, The Times of India, August 2, 2017), “The decision is understood to have followed the economist having informed the government a couple of months ago that he would like to return to Columbia University.” It was not just a coincidence that Dr. Panagariya submitted his resignation to PM Modi a week or so after receiving my substantial paper on the malfunctioning of Niti Aayog.

I fully support PM Modi’s decision to appoint Dr. Rajiv Kumar, who does not have any US baggage such as Reaganomics. In fact, he has never hold any position in the US. He did not even get any degree from the US. Since the very beginning, I have been requesting PM Modi to find and appoint economists whose brains are not polluted with the disastrous US economic policy called Reaganomics.

In the last 40 years, the US has walked a disastrous path towards bankruptcy, surviving so far only by printing their own currency that happens to be the global currency, to fund its twin deficits (trade and budget) (please read my article The US Dollar – A Ponzi Scheme). Reaganomics is nothing but treason committed by US economists, US MBAs and Wall Street, who created their Frankenstein China only to sell the US to it. In my 2012 book Casino Capitalism, there is a sub-section titled “Rise of China due to Reaganomics – A Treason” (pp 32-35), reproduced in article form at my website: Rise of China due to Reaganomics—A Treason.

India urgently needs to generate trade surplus. As I have argued (in articles found at my website) without trade surplus India cannot even dream of becoming a super-power. However, due to the insistence and influence of US-educated/based economists, India’s economy has been heading in the wrong direction since the 1991 liberalization. The media has been giving rock star status to these economists whereas on the contrary, they misled/mismanaged the Indian economy. A country should not import a mass-consumption item at all; it should either increase its production to the amount it consumes or come up with its substitute.

Do not you think that 26 years (i.e. after the 1991 liberalization) is too long a period for having trade surplus year after year for a country like India which has all the requisite resources like technology, technical/scientific manpower, and minerals?

To US-educated economists, economic progress means the following:

(1)   Rise of Dow Jones Average

(2)   GDP Growth rate

Moreover, they do not give importance to fundamental vital factors such as:

(1)   Types of jobs (mid-wage vs low-wage) being created

(2)   Trade deficit – a holy cow for them; a US-based economist can never criticize trade deficit, which the US has had for 40+ years; if they do, their US career is over.

My argument, about the functioning of Niti Aayog, is valid for all US-based economists holding top positions in the administration. They should all resign immediately so that PM Modi may proceed with a clean slate.

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