A Well Played Century

Congratulations to Pranay Kotasthane and RSJ on a well deserved century over at Anticipating the Unanticipated. It is one of the best newsletters out there on matters related to public policy, and I would strongly encourage you to subscribe, in case you haven’t already.

And to borrow a metaphor from cricket commentary, they brought up their century in style, with a fascinating piece about the Bombay Prohibition Act of 1949:

The notorious Bombay Prohibition Act of 1949 was passed when Desai was the state’s Home Minister. To enforce the ban, the government created elaborate compliance machinery, misdirecting the limited policing capacity towards apprehending tipplers instead of protecting victims of other crimes. By the time this act was watered down in 1964, more than four lakh people had been convicted under Prohibition!


The paragraph I excerpted this from begins by saying that the BPA is rather well known, but I must have missed the memo. 4 lakh people – convicted for alcohol consumption. Because, of course, that was the most pressing issue facing a newly independent India: alcohol consumption. Pah.

Please, I implore you, read the entire post to understand how markets work when faced with arbitrary supply constraints in the face of palpable demand. (And a note to Pranay and RSJ: I’m dying a little, because for me, the perfect title for the post would have been Sharaabi Aankhein Gulaabi Chehra)

The post goes on to speak about another piece of genius policy regarding the “sale and holding” of gold, and the impact it had on status within Indian society. I often joke in classes on introductory economics about how Bollywood filmmakers needed unemployment benefits because “ismugglers” as a tribe began to dwindle post liberalization.

Or put another way, there’s a reason the title had to be “Once Upon A Time in Mumbai“.

The post also refers to another excellent blog worth following, written by Nitin Pai, and shows this graphic:

Source: http://acorn.nationalinterest.in/2014/01/29/what-causes-corruption-and-erosion-of-moral-values/

I’d only add one thing here – the second last level (“Unscrupulous and corrupt people become role models because they are successful”) is actually an even bigger problem, because interventions such as bans (and others, to boot: read the whole post) also stop honest people from being successful.

Put another way, Deewar is a great movie, but also a problematic one, because the audience’s Walter Mitty moments were related to Vijay, not Ravi.

There is much more in the 100th post, including a rant on education which I wholeheartedly agree with, but we’ll leave that for another day. Once again, congratulations to Pranay and RSJ, and here’s to the double century: cheers!

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