Page 94 - #letter to son

#SangamNiti SUNSET CONTEMPLATIONS
But then you might question as to what could be the solution to debt.
It is again quite simple: The switch-over from debt to equity. The role
of the government and the banking system should be such that it does
not crush the business under the burden of debt, but give it wings
under the able and stable platform of equity. This growth partnership
approach will incentivise the businessperson and the entrepreneur to
work hard, provide large-scale employment and distribute the fruits of
collective labour to stakeholders, while the government, being a large
stakeholder in the enterprise, can enjoy returns on its invested capital
through dividends. Furthermore, if the business does not work for
whatever reason, the risks can be equally amortised, rather than the full
responsibility of the failure put on the founders alone.

This idea builds on the fundamental principles of democracy in which
the government does not have a superior position with respect to its
citizens but is considered as a force that ensures an equal and equitable
society. It does not differentiate citizens on the basis of their occupations
or social status; it is of the people, by the people and for the people.
There has to be a mechanism to redefine the relationship between the
government and its citizens in which the government and the citizenry
are partners in progress, what I often refer to as ‘sarkaar aur nagrik ki
bhagedari’.

This way, the government will promote the industrious, while helping
weed out those who have mala fide intentions.

#SangamNiti: It is important that you free yourself from the clutches
of debt – one person at a time. This can have a transformative effect
on your financial, physical and spiritual wellbeing. The best and most
effective switch-over resource away from debt is equity. The equity
approach to growth is the most suitable and sustainable in the long run.
This also has the power to redefine the government-citizen relationship
in which these two are partners in growth working towards a common
goal, rather than being on the opposite sides that can lead to destruction
of value.

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