My friend, V. Santhakumar, has chosen to discuss the economics of the ongoing nurses' agitation in Kerala in his article in Mathrubhumi dated 27-02-2012.

Here is my reply to him. Santhakumar being a neo-classical economist, though often seen as claiming himself to be a new institutional economist, my reply to him requires some excursion into the literature within neo-classical economics itself.