Economics: Looking at the Thai political crisis from Joseph Schumpeter point of view

About month back, when Fascist Suthep was marching on the street, at the height of his protest, with about 100K to 200K Thais on the street, I was on twitter with some twitter friends. And we were talking about what is going on, and the theory, that was proposed, was that Thaksin and Yingluck made a strategic mistake, in under-estimating the hatred of Thaksin and Yingluck in Bangkok.

And since then, Yingluck has dissolved Parliament and called for a new election. All in all, that “Strategic Mistake” is what occurred and is the reality of what went on, about a month ago.

However, in that Twitter conversation, my friends asked me, what was my theory of what was going on. And I told them, I believe that Thaksin and Yingluck, both know they were going to get screwed by the elite establishment. Yingluck’s campaign promise, to bring democracy to Thailand, reconciliation of the great Thai political divide and populous policy, were all being challenged by the elite establishment and was going no where.

In fact, I told my twitter friends, that the elite establishment was on an offensive, targeting to destroy Yingluck’s Pheu Thai Party. What we are looking at, I told my friends, is a Thaksin and Yingluck, laid out on the dying bed, slowly, moving closer to the the end.

“I like the movie Lords of the Rings, where the trapped soldiers rode their horses out of the castle, charging their enemies, knowing they were all going to be killed, to win a moral victory,” I told my twitter friends of what I thought Thaksin and Yingluck were doing, and what was occurring in Thailand.

They of course, thought I was crazy and objected to my theory.

The Austrian economist, Joseph Schumpeter is a remarkable economist, who among other, proposed the concept of “Destructive Wind of Creativity.” What Joseph talked about is the fore runner of concepts such as disruptive engagement and other such thought. Joseph’s economic thoughts, have emerged as a cornerstone of entrepreneurship. Entrepreneurship to Joseph, is what keeps economic growth going.

Joseph also said, Capitalism will fail, because of the moral decay of the leaders of the Capitalist class.

In a way, the theory that I proposed about what was going on in Thailand, about a month ago, with Thaksin and Yingluck, riding out of a castle, against a horde of beast, to meet them in death, for a moral victory, is similar to  Joseph’s economic theory.

The Thai political scene right now, is highly destructive. The Fascist Suthep is running wild, The Abhisit’s Democrat Party is hardly functioning as a political party but more like a a coup maker. The military is concerned about a civil war. The millions of Red Shirts are itching to hit back. The independent units, like the constitutional court and anti corruption unit, have gone totally insane. Yingluck and Thaksin are both bruised political beyond belief. Lese Majeste is going extremist again. The economy is suffering. And most in Thailand had been polarized, showing where they stand on Democracy vs Dictatorship, for everyone to see plainly.

So the mask of “What is right and Good” that Thailand was hiding behind, is now about 100% exposed for everyone to see. There is little secret now in Thailand, everything is out in the open, battling against each other, like trench warfare in WW2.

But what of the future? Is Joseph right, about the destructive wind of creativity, sweeping in, to give re-newal and re-birth, of a brighter time of creativity ahead after all the destruction, is over with?

The Fascist Suthep, Abhisit’s Dems dis-functional political party, the elite independent units, are all clearly the “Destructive Wind” sweeping across Thailand. And Yingluck and Thaksin, clearly, the progressive “Wind of Creativity.”

I used to be a sttaunch Red Shirts, who now is just a Democratic Activist, but I still have many Red Shirts friends that I hang out with. A Red Shirts tells me, the struggle between Democracy and Dictatorship never ends, that is what history at global level have taught all of us.

“But there are times of great battle and times of smaller battles. In Thailand now, we are waiting for the great battle,” said my Red Shirts friends.

An election is now called for in Thailand, that could in theory settle the question of who has the majority in Thailand. With that majority, a new Thai direction could emerge, sweeping away, the Fascist Suthep for a time of “Creative Progress.” But to get there, is still many challenges and once there, of course, the forces of dictatorship and its “Destructive Nature” will still remain.

And will, whatever emerges, after this “Destructive Wind of Creativity” pass, be something new and unique, something to give the Thai people hope of a better future?

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