Book review : The Wealth of Nations - Adam Smith

Adam Smith was an economist in 17th century England who gave groundbreaking ideas in economics, contrary to the popular opinion at the time.

He wrote 5 volumes on economic policies that determine the wealth of a nation. The basic ideas in those volumes are valid even today. The principles given in the book like GDP are used in evaluating the welfare of a modern nation.

The most groundbreaking idea of Smith was defining the wealth of a nation. In Smith's time it was popular opinion that the wealth of a nation is the amount of the gold and silver (precious metals) in the King's coffers. So nations in that era restricted import of goods/services from outside to prevent the outflow of precious metals from the country. This type of thinking was so strong that nations restricted even their colonies from trading with other nations. Smith theorized that the wealth of nation is not the amount of precious metals but the labour/goods those precious metals command. So, it would be beneficial for an industry to concentrate it's effort on producing goods that it makes efficiently and import whatever it cannot make efficiently from others.

In the first and second volume Smith talks about division of labour and how concentration of capital is necessary for a nation to build up industries. Even though Smith apparently advocates policies that favour concentration of capital (but also more competition) he explains how this would ultimately lead to welfare of the typical citizen.

In volume 3 Smith talks about policies that favour competition and increase the wealth of a country. Book IV appraises different theories of economics in the light of all these considerations. Book
V then identifies the proper role of government, the principles of taxation, and the impact of government on the economy.

Eamonn Butler here provides an excellent condensation of the 5 tomes.

Living with lazy flatmates

Instructions to get water at night in my home -

1. Get to the Kitchen
2. Open the microwave
3. Find a glass for water
4. Find the tap and get water
5. Close the microwave
6. Go back to sleep.

Why the microwave ? Because nobody wants to go to Walmart, which is 15 mins away from work, to get another tube-light. 

Why are manhole covers round?

The normal answer to this question would be because every projection of the circular manhole cover on the hole would be equal to its diameter, thus preventing it from falling inside, unlike say a square or an equilateral triangle or a pentagon.

But there are certain assumptions in that question which are not clear. The first answer, that occurred to me, was that it would be easier for the manufacturers to make circular holes. If you are Indian I can almost guarantee that this logic would sound more sound to you than the earlier one. Because... why would a manufacturer who gets a government contract to make manholes for public roads care about the utility of the product to the public or maintenance workers?

Interesting Quote

You might be a mathematician if hypergeometric summations are the most fun you can have with your clothes on.

Found on a professors T-shirt

Random thoughts of an atheist

God has existed in every civilization on earth => The idea of God must be important for the human species to survive.

If you truly believe the previous logic  ( you are an atheist ) => you cannot survive if you dwell on this question too long => Stop thinking or Believe in God.

Adarsh Trivia

Some trivia about my friend Adarsh Patel : 

• In an argument with Adarsh, either He is right or He is not wrong

• Once a kid dared start an argument with Adarsh, that kid was Dr Manmohan Singh

• When Adarsh completed His PhD thesis, some kid asked for His help to navigate and search it. That kid was Larry Page and today we all everyday use the algorithm that He created

• Every communication system that Adarsh designs works at 200% its Shannon capacity. Shannon didn't consider the hidden "Adarsh capacity" while defining transmission capacity.

• Adarsh knows how to reverse the entropy of the universe

• Adarsh gave a PhD degree to His guide, Dr Aditya Jagannatham

• All the hobby clubs at IIT Kanpur were actually inspired His playgroup activities

• Once Adarsh dived into the sea. The point on the seabed where He landed is called the Mariana Trench

• Usain Bolt was actually running scared from Him when he created his world record

• The Bengal Famine is falsely attributed to the British administration. It was actually caused when Adarsh decided break his centuries old fast

• Kanpur's restaurant now give you a discount of 20% if you bring Adarsh along 

• Adarsh gave up mountain climbing when he saw the looming Mt. Everest. He was dejected, it was too small for His consideration. Isn't there anything in this world worthy of His consideration.

The last two are under-exaggerated. Please post more in comments. 

Little known facts about my friend Naveen

Facts and theories of and about Naveen Kumar :

• Naveen's full name is Naveen Kumar Dasanudaddi Venkategowda
• Naveen can travel a distance of atleast 600km just for "Tamil" tomato fried rice 
• Naveen can read, complete study a 300 page book in 2 hours in the hot summers in a sleeper class coach of the Indian Railways.
• With Naveen : Being on time means being early
• You can make Naveen leave the room by arguing with him for 2 minutes, because He doesn't argue with mortals
• A 2 day notice is required if you want to include Him in any event, even if it is a sponsored  dinner at the most expensive restaurant in town.

And the most important and the least known fact :

Naveen KDV has learnt to navigate the river of time in both directions. All the "stunts" performed by Rajnikanth are actually based on His future adventures.