Capitalism is preeminently a money-using system where a large part of wealth is held either in the form of money or as money-denominated assets, namely financial assets. For the system to work, it is essential that the value of money should not keep declining against commodities; otherwise people would move away from holding money, and it would cease to be not just a form of wealth, but even a medium of circulation.… Hence, capitalism seeks to ensure the stability of the value of money in a number of ways. One is the maintenance of a vast reserve army of labor, not just within the metropolis but also in the third world.
India has had a growing problem with food output and availability for the mass of the population since the inception of neoliberal economic reforms in 1991. A deep agricultural depression and rising unemployment rates resulting from “reform” policies have made the problem especially acute over the past decade. There has been a sharp decline in per capita grain output as well as grain consumption in the economy as a whole. Income has been shifting away from the majority towards the wealthy minority and a substantial segment of the population is being forced to eat less food and wear older clothing than before. This is exacerbated by the current global depression, which is further constraining mass consumption because of rising unemployment.
Alice Thorner’s life was lived in three continents, and her interests lay in studying processes of change in India’s colonial economy and the experience of planned development following decolonisation. She interacted for over six decades with academics and academic-bureaucrats, who were not inconsequential actors in what Gunnar Myrdal had termed the ‘Asian Drama’, and she too played a part in that unfolding drama. It was while visiting England on the eve of the WW11 in 1939 with husband Daniel who was researching his thesis at the India Office library in London, that she first met the group of enthusiastic Indian nationalists which included V. K. Krishna Menon, P.N. Haksar, K.T.Chandy and Feroze Gandhi. Many were to become lifelong friends