H aving said that Homo Economicus is a machine programmed to generate wealth, it becomes necessary to examine the argument taught in Indian Economics that India’s huge human population is a cause of poverty. If humans are the only species capable of creating wealth, then how can more of their number cause poverty? What is the truth?

The truth is that every dot on the map, representing a town or a city, is densely populated with human beings—and is rich. There are more millionaires, cellphones, Mitsubishi Lancers, and swimming pools in crowded Delhi than in vacant Jhoomritalaiya. Why is this so? For the answer, we must turn to Economics, which is the study of the production of wealth.

Because we can trade, we specialise in doing what we do best and exchange with others for the things t

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