Thanks, Mo for a lucid 101 on money the lubricant of economic freedom! Unfortunately, our governments can only dole out 'disguised unemployment' ... How do we create real jobs ?
Don’t count on manufacturing to move mountains. Modern manufacturing only cuts jobs. Besides we need to create demand to spur manufacturing. Mugs game !
I think that the real question to ponder is why the 600 million Crusoes don't offer their services to the participative 400 million at a discount to what they may be paying at present? Surely, a factory manager that hires 100 workers at 1 fish per day each would happily hire 150 if only they'll take say half a fish. Is the real problem elsewhere - perhaps regulations, labor laws and minimum wage?
Indeed. I wonder if there are deeply ingrained cultural factors too. Are we, as a nation, prone to lazing under the coconut tree, waiting for the nuts to fall, and happily going naked if the pants don't hold up?!
Loved your columns. Thanks for the wonderful analogy. I have a couple of questions:
1) Does the 600 million include the unproductive retired people? Is it fair to consider them?
2) Does this 600m consider home makers as unemployed. To me, I feel the employer of the employed spouse essentially pays for both the employed and the spouse. The employer is paying enough for them to sustain such a lifestyle.
If you consider the above two points to be valid, may be 600 will become 300, and % unemployed will reduce from 60% to 30% (Not to say that 30% is a good number.)
However, Labour Force Participation Rate is a universal measure, and most well-off countries are have LFPS in the 60s and 70s, as compared to ours of less than 40.
On the issue of homemakers, India has about the lowest female labour participation rate in the world - it's partly cultural, of course.
Thanks, Mo for a lucid 101 on money the lubricant of economic freedom! Unfortunately, our governments can only dole out 'disguised unemployment' ... How do we create real jobs ?
The most reliable predictor of economic prosperity is the Rule of Law.
I will write about this soon.
Our courts have become whimsical, lethargic, and prone to pressure.
Add the Squeeze of Doing Business, and you have manufacturing 'growing' at 2% per annum.
Don’t count on manufacturing to move mountains. Modern manufacturing only cuts jobs. Besides we need to create demand to spur manufacturing. Mugs game !
True.
We are stuck in a bad place.
True
We're struck in a bad place.
Good answer.
Hi there
I believe I'm better off being alone on the island.
Trust your climbing skills are well-honed.
They're.
I'm having ONLY Thirty percent in Hybrid Fund.
Others are debt fund OR FD.
Hope I'm okay.
Anyway I am a small fish.
I like reading your columns.
Please do continue.
Many thanks, Bhaskar. I will.
I never thought someone can teach economics through a English literature.
Thanks for the new perspective..
Mohit, thanks for illuminating an otherwise confusing and dry topic with prose that is anything but prosaic!
Very gratified - and grateful - for your comments, Vikram.
I think that the real question to ponder is why the 600 million Crusoes don't offer their services to the participative 400 million at a discount to what they may be paying at present? Surely, a factory manager that hires 100 workers at 1 fish per day each would happily hire 150 if only they'll take say half a fish. Is the real problem elsewhere - perhaps regulations, labor laws and minimum wage?
The laws are certainly part of the problem, Vikram.
There are also income support programs such as MNREGA, which lie somewhere between 'real' work and no work.
Add household and non-monetary work, low levels of skilling - it's a very complex puzzle, and all elements have to be tackled.
Indeed. I wonder if there are deeply ingrained cultural factors too. Are we, as a nation, prone to lazing under the coconut tree, waiting for the nuts to fall, and happily going naked if the pants don't hold up?!
Yet, for a decade or so (2002-2012) it felt as if we were breaking the mould and finally going somewhere as a nation. No longer, I'm afraid.
Hi Mohit,
Loved your columns. Thanks for the wonderful analogy. I have a couple of questions:
1) Does the 600 million include the unproductive retired people? Is it fair to consider them?
2) Does this 600m consider home makers as unemployed. To me, I feel the employer of the employed spouse essentially pays for both the employed and the spouse. The employer is paying enough for them to sustain such a lifestyle.
If you consider the above two points to be valid, may be 600 will become 300, and % unemployed will reduce from 60% to 30% (Not to say that 30% is a good number.)
You are absolutely right.
However, Labour Force Participation Rate is a universal measure, and most well-off countries are have LFPS in the 60s and 70s, as compared to ours of less than 40.
On the issue of homemakers, India has about the lowest female labour participation rate in the world - it's partly cultural, of course.
Thanks Mohit: Sunil Agarwal