Stay Away From Luxury Beliefs | Episode 46 | Everything is Everything

It is fashionable for privileged elites to have ideas about the world that make them feel virtuous -- but end up harming the poor. Stay away from such Luxury Beliefs!
Welcome to Episode 46 of Everything is Everything, a weekly podcast hosted by Amit Varma and Ajay Shah.
In this episode, Amit and Ajay discuss how socialism, focusing on inequality, banning victimless crimes and being generally against capitalism can fill you with a sense of your own goodness -- but also end up hurting the poor.
Dive in with an open mind!
Oh, and Amit's newsletter is furiously active again, so do read and subscribe at indiauncut.substack.com/
If you like watching Everything is Everything, please like, subscribe, share, comment. :)
TABLE OF CONTENTS:
00:00 Packaging
00:13 Introduction: Gazing at My Shoe
05:21 What Are Luxury Beliefs?
07:21 Luxury Belief 1: Socialism
13:19 Luxury Belief 2: Inequality
21:51 Luxury Belief 3: Victimless Crimes
29:07 Luxury Belief 4: Anti-Capitalism
35:00 Luxury Belief 5: Price Controls
37:54 Why Do People Have Luxury Beliefs?
49:34 Amit’s Recco
USEFUL RESOURCES:
1. Amit on Twitter: / amitvarma
2. Ajay on Twitter: / ajay_shah
3. The Seen and the Unseen -- Amit's audio podcast: seenunseen.in/
(Also on all podcast apps. And KZbin, though less than 1% of listens come from here: / @theseenandtheunseen )
4. Ajay's organisation, XKDR Forum, on KZbin: / @xkdr
5. In Service of the Republic -- Vijay Kelkar and Ajay Shah: amzn.eu/d/hwGILb3
6. The Art of Clear Writing -- Amit's writing course: indiauncut.com/clear-writing/
7. The India Uncut Newsletter -- Amit's newsletter at indiauncut.substack.com/
8. Beware of These Five Fallacies! -- Episode 45 of Everything is Everything: • Beware of These Five F...
9. Nowhere Near -- Yo La Tengo: • Nowhere Near
10. On Fire -- Galaxie 500: open.spotify.com/album/1qhNLX...
11. Lunapark -- Luna: open.spotify.com/album/0zMmVW...
12. November Rain -- Guns N' Roses: • Guns N' Roses - Novemb...
13. Sign of the Times -- Harry Styles: • Harry Styles - Sign of...
14. Shallow -- Lady Gaga & Bradley Cooper: • Lady Gaga, Bradley Coo...
15. Troubled: A Memoir of Foster Care, Family, and Social Class -- Rob Henderson: amzn.in/d/e05YxXJ
16. Luxury Beliefs are Status Symbols -- Rob Henderson: www.robkhenderson.com/p/statu...
17. The Populist Playbook -- Episode 42 of Everything is Everything: • The Populist Playbook ...
18. The Citizenship Battles - Episode 152 of The Seen and the Unseen (w Srinath Raghavan): • Ep 152: The Citizenshi...
19. Caste, Capitalism and Chandra Bhan Prasad - Episode 296 of The Seen and the Unseen: • Ep 296: Caste, Capital...
20. Enlightenment Now -- Steven Pinker: amzn.in/d/afAGu8R
21. India’s Problem is Poverty, Not Inequality -- Amit Varma: indiauncut.com/indias-problem...
22. On Inequality -- Harry Frankfurt: amzn.in/d/6X8ro5G
23. Laws Against Victimless Crimes Should Be Scrapped (2008) -- Amit Varma: indiauncut.com/laws-against-v...
24. Poker and Life -- Episode 38 of Everything is Everything: • Poker and Life | Episo...
25. Bootleggers and Baptists: The Education of a Regulatory Economist -- Bruce Yandle: techliberation.com/wp-content...
26. Raees: An Empty Shell of a Gangster Film - Amit Varma: indiauncut.com/raees-an-empty...
27. The Matunga Racket (2007) - Amit Varma: indiauncut.com/the-matunga-ra...
28. Why Children Labour (2007) -- Amit Varma: indiauncut.com/why-children-l...
29. The Economics of Child Labor -- Kaushik Basu and Pham Hoang Van: www.jstor.org/stable/116842
30. Observations on Intenational Labor Standards and Trade -- Alan B Krueger: www.nber.org/system/files/wor...
31. Child Labor in the Global Economy -- Eric V Edmonds and Nina Pavcnik: www.jstor.org/stable/4134999
32. Price Controls Lead to Shortages and Harm the Poor -- Amit Varma: indiauncut.com/price-controls...
33. The Vision Of The Annointed -- Thomas Sowell: amzn.in/d/1vHLll4
Produced by Amit Varma
Shot by Vaishnav Vyas and Nomsita MS Haritashya: / vaishnav.vyas
Edited by Nomsita MS Haritashya: / nomsitaharitashya
Thanks to Gaurav Chintamani for helping with sound: / gaurav_chintamani
Chapter images & additional illustrations by Simahina: / i_am_simahina

[@aditimascarenhas5608]

Nomsta and Vaishnav are doing a fabulous job with the production.

[@amitvarma]

Indeed, Nomsita and Vaishnav are amazing!

[@sashidharl]

Amit man, I love the content you put out; I probably am within the first 50 people who watch 'Everything is Everything' once it is uploaded, but what is the update on your books? I've been waiting for it for years now.

[@amitvarma]

If you're referring to the Seen/Unseen books, entirely fault, I've been dawdling.

[@varunagg2023]

Isn't Pro business crony capitalism also a function of extreme wealth concentration in society? When a handful of businesses/promoters control 20/30% of gdp, their access to power is immense. Poverty alleviation is the key but so is cultivating greater disconnect between wealth and access to power. The issue of wealth Inequality cannot be ignored without this issue being addressed.

[@amitvarma]

This is why we keep stressting that pro-business and pro-markets are opposite terms. Cronyism is a huge problem, and at the core of it is the coercive power of the state. To imagine that the state is the solution, and not the problem itself, is also a luxury belief of sorts.

[@Virangshah99]

A reasonably well functioning state is not a problem. E.g., Scandinavia, The US maybe such states

[@anoopasranna]

Great episode! Urban Indians lamenting rural India's move away from agriculture is also perhaps a luxury belief

[@amitvarma]

Yep, would agree with that. And also the romaticization of rural life, which is easy to do from the bright lights of a big city!

[@Veer1920]

​@@amitvarma...but romentization of rural life done more by rural people than the urban one.

[@vikramrghanekar]

Very interesting conversation. The most difficult thing to do is saying "I don't know enough about this matter, so I do not have an opinion." As far inequality goes, it has always existed and always will. As you rightly said the priority is to uplift people to a certain standard of living. It is important have a clear path marked out, which is easily accessible for a poor person to uplift himself/herself out of poverty. That means availability of quality education, nutrition and healthcare at practically no cost. Unless these conditions are created and maintained, a poor person can only see the display of wealth without any hope of being ever part of it creating resentment. If theres is clear and accessible path out of poverty, the same Inequality can create aspiration.

[@SuchetKumar02]

Thank you so much for this eye-opening conversation!

[@knittins99]

Ajay, you remind me so much of one of the smartest people I've had the good fortune of meeting. Prof. Sebastian Morris, whose economics class was dreaded, and whose philosophy course was always fully subscribed at IIMA.

[@cyberrecluse7024]

Lovely episode Amit and Ajay! Really opened my eyes to so many of my own frailties.

[@HarshSharma0210]

@Ajay, on the point of collaborating with the strongman. What option do business leaders have once the strongman is in power? After all, masses voted strongman to power. They have to collaborate, though unwillingly, else risk themselves become the target of state coercion. And strongman has no personal benefit to fix rule of law!

[@shreyasaadityaks2225]

Hey, Amit and Ajay! Just a bunch of thoughts.... I wanted to know your opinion on how much do you think individuals action from "free will", societal priveleges and true luck/chance contribute individually to wealth generation? I understand for every individual it might be different percentages of the above but is there a overall framework to understand generally what might be each's contribution. Dont you think in current scenario across the world, even in a relatively free market economy, disruption happens through people with elite backgrounds in terms of wealth and/or knowledge (not in a critical sense but as an observation)? How can these elite communities become more diverse in its members naturally and not through a coerced sense? I think any society at any point of time will never have equality and there will be elites but how can this be as diverse as possible with contridicting views working in their self interests to improve overall competition and at the same time represent the interests of their groups. Also wanted to know your take on diversity and inclusivity, can markets be coerced into preferring it? Though it is the right thing to do! How can we naturally incentivise diversity and inclusion? Also In Service Of The Republic is my no1 book recommendation to anyone I meet... :)

[@Virangshah99]

I love your and Ajay Shah’s YT videos. Great ones. Please stop chair wala link joke.

[@soumyasarkar4100]

Thanks Amit for this podcast , much appreciated for the effort put into this

[@Jacob-pp8yk]

Hi Amit and Ajay, thanks for a great show. Have been a a regular listener.My largely uneducated opinion is that I agree with your luxury beliefs on the left side of the spectrum. But I think in general your opinions about socially unregulated sex, drugs and betting is also probably a luxury belief which mainly affects the poor and uneducated. And i think, Rob Henderson also agrees with me.

[@gnilambar]

The point is all these things will happen even if they are illegal, through mafias. Second agents of the state will just take bribes to let you do what you want. The real solutions lie elsewhere.

[@ivanlobo397]

Nice discussion on history of ideas.

[@kamitaditya]

Amit and Ajay, thank you for this conversation. How would you view “Degrowth” and similar concepts for developed western societies who don’t have to deal with poverty? (unlike India, where you believe growth is essential)

[@ajayshah5705]

I think that social stress goes up when growth is weak. It is in the nature of human society to get growth. There will always be saving and there will always be technical change. This will be greater than population decline. The natural state is growth.

[@ShreyasRamesh28]

Great show and reccomendations! Idk if it is possible but, would love to have Vivek Kaul to make a comeback in the Amit Varma Universe!

[@vishvendrasingh5780]

Finally!

[@abihazaidi8779]

Where are they getting their shirts!

[@simransaini9801]

Waiting for the shallow cover! 🎶

[@amitvarma]

Someone convince Ajay!

[@rishabhmishra9230]

Malibu Love Nest is my favourite song by Luna.. also, check out Slowdive, Beach House, Mild Orange, Pale Saints

[@amitvarma]

Yeah, Alison from Slowdive's Souvlaki has been my earworm for the last week!

[@VanithaJDevi]

Amit, I hear you repeatedly saying "India is a poor country" but in contrast I see you scoop on the elite communities of India, you talk about economics that establish the dynamics of Indian economics, you are in touch with the creamy layer people of India...what am I missing here. All that we enjoy today is a result of India being a resourceful country. What am I missing here?

[@vasdgod]

The interactions among the medival culture following pastists .

[@yj9032]

अमितजी, में तो हमेशा आपकी तारीफ करता रहता हूं कमेंट्स सेक्शन में। मैं हमेशा आप और अजय सर की वह-वह करता हूं। लेकिन इस विषय पर में निराश हो गया। जिसको आप luxury beliefs कहते हैं, उन्ही विचारों ने भारत को बचाया। अगर समाजवाद न होता, आज हमारी अवस्था पाकिस्तान की तरह होती। जब भारत और पाकिस्तान आज़ाद हुए तब हमारी अर्थ व्यवस्था पर जमींदारों की मज़बूत पकड़ थी। उन्होंने ही भारत के विकास को रोका। अंग्रेज से बढ़कर इन जमींदारों ने ही भारत को गरीब बनाया। आजादी के बाद, कई सारे प्रदेश सरकारों ने भूमि सुधार का कानून बनाया और उससे जमींदारों की दबदबा को खत्म किया। तभी हम एक मुक्त बाज़ार की स्थापना कर पाए। पाकिस्तान में यह सब कुछ नहीं किया। उन्होंने अमेरिका की गुलामी स्वीकार कर ली और पूंजीवाद को अपनाया। और हम आज उसका नतीजा देख सकते हैं। नमस्ते

[@user-ng5xr2ju2z]

Honestly a lot of the references given by Amit and Ajay are usually quite Western for me, I'm not aware of them most of the times. But must say I really enjoy this show, I randomly saw an episode on the Papers that changed the world, and realised that I landed on gold. Good show guys, keep going. Thoda Western ki jagah Indian references dedo pls.

[@ajayshah5705]

Thank you for your interest. Once you have seen a few episodes, you would see that we're basically curious about the world and we live in India. Are the ideas and recommendations things that stir your mind? :-) That's what we're trying to do.

[@user-ng5xr2ju2z]

​@@ajayshah5705 Yes Sir, its a fantastic show, so many ideas for stimulation. Just sometimes the relatability is less but thats ok. Btw, Sir I have read your book "In service of the republic", at first I didn't realize you were THAT Ajay Shah xD.

[@ajayshah5705]

@@user-ng5xr2ju2z :) It's great that you have read the book. In this show you will see many connections into those ideas. (And, the end notes of the book have a lot of the modern understanding-India-literature). In EiE we are trying to be more accessible than the book. Please see www.mayin.org/ajayshah also.

[@user-ng5xr2ju2z]

​@@ajayshah5705 Sure Sir. Small Request- I also want to learn about the professional economist side of you, if you could do some episodes where you go in detail about your work on the Indian Economy, policy issues, how you handled various govt/policy related assignments(maybe some fun stories about that)-proper hardcore economics basically. If you could do such episodes once in a while, would be terrific. Thank You

[@ajayshah5705]

@@user-ng5xr2ju2z okay, thinking. (There are quite a few hardcore economics episodes....)

[@hrsh3329]

❤

[@varadmurtipatil6476]

Isnt "woke" or "Western" sustainability/climate change intervention aslo luxry belief?

[@ajayshah5705]

kzbin.info/www/bejne/sIG8aZycd650lbcsi=EDzekXkZWTvDq8h2

[@anshul_eie]

For a while is a phrase whose length can’t be measured. At least by the person who’s waiting. ~ Haruki Murakami

[@sagar696]

Do luxury beliefs come from malice or ignorance or both?

[@oflavia2910]

I wonder whether an ism of any sort is highly dependant on who's running it. For eg where is pure capitalism in play? Secondly, having robust minimalist state intervention and liberty on all else, is liberalism, then what level of people maturity needed?

[@rishavprashar2609]

The great depression of 1929 led to the downfall of capitalism and rise of socialism, and this attracted Indian old timers towards the latter as it showed remarkable progress in soviet countries. However, India took to "democratic" socialism not socialism per se. People mistake it for Marx's Socialism, na not the case though :) u guys are 🤗

[@davidjohntinkering]

Augusto José Ramón Pinochet Ugarte ?

[@kakaderaunak]

Strong candidate for a super meme 5:36 😂

[@PrasannaShroti]

While this is indeed a great episode and it may sound heretical, I wonder if "consent" or "freedom" are also such a set of luxury beliefs? One could argue with some merit that an average person in China has way less of both consent and freedom than someone in India, but they enjoy perhaps a better day to day quality of life.

[@AftabAlam-hy2ny]

I couldn’t understand why growth can't happen while keeping inequality muted. In many societies, including ours, a significant portion of growth stems from crony capitalism, or at least government complicity with the moneyed class. I am not advocating for perfect equality, but I am definitely arguing against extreme galloping inequality. You should also not discount the effect of relative poverty (inequality), as it cultivates mistrust in society. The 'Adanification' of society is both economically and morally bad. Extreme inequality not only diminishes the beauty of society but also fosters a master-slave configuration, perpetuating societal divisions. A healthy society is one where millionaires abound and not where few billionaires take advantage of the system & mock others. How can a nation idolize or even tolerate an Adani!

[@amitvarma]

As we explained in the episode, poverty and inequality will inevitably go in opposite directions when growth happens in a country like India. So you have to choose which you want to tackle. In India, our moral imperative is to reduce poverty.

[@AftabAlam-hy2ny]

@@amitvarma Some countries have achieved economic growth with relatively low levels of inequality. Examples include the Nordic countries, where strong social policies and labor market regulations help ensure that growth benefits a broad segment of society. Investments in human capital - education, skills training, and healthcare - can promote more inclusive growth. When a broader base of the population has access to these resources, it can participate more fully in the economy, reducing inequality. In summary, while economic growth comes with a risk of increasing inequality, it is not an inevitable outcome. It may be possible to achieve economic growth that benefits a wider range of the population through right policy intervention or at least by avoiding crony capitalism. I am not batting for perfect equality but only for a tolerable inequality.

[@amitvarma]

​@@AftabAlam-hy2ny Check out Johan Norberg's writing and videos and on the Nordic countries.

[@braineaterzombie3981]

Hey but i was thinking wealth distribution via inheritance is not that bad of a idea. Suppose if 1 farmer has 10,000 goats instead of 1 , in that case distribution might make sense. In an ideal world , billionaires should not exist since they should be paying enormous amounts of taxes but these people always find a way of legal loophole in the system to avoid taxes.That's why i believe that inheritance tax should exist but only at 0.001% richest population (for example people having more than 100 crore in wealth)and tax rate could be upto max of 30%. In this way we aren't completely stripping away everything from a child while maintaining equality.

[@ajayshah5705]

www.mayin.org/ajayshah/MEDIA/2024/inheritance_wealth_tax.html

[@nitinnair7918]

Link to the Marxist checklist?

[@ajayshah5705]

www.marxists.org/archive/marx/works/1848/communist-manifesto/ch02.htm See the 10 points there

[@rushabhsagara8766]

Amit, I know you didn't know this, but your parents also kept a 2nd name of yours secret from you. Today I will reveal that to you. It was "EYE-OPENER"!

[@amitvarma]

Haha, thank you!

[@awenindo]

Forgive my armchair opinion, I think maybe that regulating competition out is the worst form of price control; e.g. liqour licenses in Karnataka.

[@amitvarma]

Yes, it's horrible.

[@amitabhjha5136]

Mr shah can zoning laws like residential area and agricultural, industrial land be thought of like luxury beliefs? Height restrictions. Is urban planning not a top down utopian belief.

[@ajayshah5705]

The recipe is. Where is the market failure? Using the coercive power of the state in certain ways may be useful when faced with market failure. Otherwise, freedom (absence of state) is the best. There is a role for (correctly done) town planning.

[@amitvarma]

Yes, restricting FSI and asking for the abolition of slums is a convenient luxury belief when you already live the good life in a city.

[@postyanka]

Can inequality be seen as a source of coercion through the concentration of influence? It is then not about wealth per se, an individual or family can have enough to live comfortably, but about the larger structures of choice that get controlled by a small group of people or interests. I can understand Amit's frustrations with dinner party elitism, or ngo pontificating, and that to start with atleast poverty and inequity go in opposite directions as the poor become better off and the rich get richer in a growth driven paradigm, but it is also elitism to accept the worsening of inequality as collateral damage for improving poverty or growth. How is coercion not made worse by increasing inequity, in the real world?

[@varadmurtipatil6476]

Alternative title for the video " elitism of well-off"

[@hrsh3329]

.

[@twenty-twenty]

The past few years that propagated these ideas of luxury beliefs was caused by a generalized conviction that someone else is doing the thinking and that individuals don’t need to think deeper about not just themselves but of those around them. Which allows them to build up hollow religion-powered moralistic benchmarks through which they judge everyone else. If anything, what we need is degrowth of faux pride. OMG you guys stop making me want to rant.

[@andrewdavid9051]

Another great modern shoegaze album Title Fight - Hyperview.

[@amitvarma]

Thanks, listening now.