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Slumming It

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Submitted By nikki23
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Nicole Dempsey

Slumming It

How might a Keynesian respond to Dharavi? Is there any place Keynesian economics might not work in this scenario? I feel that a Keynesian would respond with a lot of shock towards Dharavi. Dharavi is run by impulsive commands, or the thought that people could shape themselves on their own. Meaning they could work together with others around them and make use of local knowledge more effective than if they were organized by a central control. While a Keynesian idea of a government is needed to help boost economies in the time of when money is in need to lower taxes and inspire demands, however in Dharavi everything is controlled among them not with an outside government assistance. I believe that Keynesian economics would not work in this scenario in Dharavi because Keynesian economics is focused and works best in a short term while Dharavi needs so much more assistance.
How might a Hayekian respond to Dharavi? Would Libertarians, Milton Friedman and Ayn Rand (from the egoism article) who are largely Hayekians, be horrified by this scenario? Unlike a Keynesian a Hayekian would be satisfied with what Dharavi was able to achieve. Hayekians believed that when people were able to freely do things in life and make decisions that the economy ran more efficiently. There economics is defined by a more freedom economy and less government interference. I feel that Libertarianism would not be horrified; their theory is of freedom from the government as long as there is no harm to others because of that freedom. I also think that a libertarian would be scared for people’s safety because of the poisonous living conditions in Dharavi.
Are the technologies produced in Dharavi and the barefoot college, a product of capitalism or socialism? The technologies produces in Dharavi and the barefoot college are more of a product of capitalism. Capitalism is about making goods and services in exchange of a profit that can be put back in to the economy for growth in the economy. It is also based on individual rights, like the free market or better known as laissez-faire system. In this system the government is to “keep their hands out,” meaning that they are not allowed to get involved with the production and exchange of the products in this type of business. Dharavi and the people at the barefoot college are working to accomplish all of this in their economy.
Are there any virtues which could be adapted to "developed" countries? If so, what would it take?
I think one virtue that could be adapted to “developed” countries is more freedom like Dharavi and the barefoot college is trying to offer to their economy. When there is less of government interference the market is capable of doing what it wants and achieving more. I feel that now a days in the United States, as well as others the government gets too involved with the market. This does not necessarily help the economy but can have a negative effect on the market and the people involved in the system.
What, if anything, could the developed world offer the developing world in their plight? The developed world could offer the developing world in their plight is global economic health. The slums are a poisonous and very dirty place for the human population to live in. A clean up in economic health would really help the people to follow in a positive way and in the growth of the world. Restoring the global economic health would help overcome the obstacles in achieving their goals.

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