Asserting that it was incorrect to suppose that authorities intervention might solve each social and economic problem, Chief Economic Advisor V. Anantha Nageswaran on Tuesday contended {that a} prognosis was simpler than the answer when it involved problems like unemployment.
Speaking on the unveiling of the “India Employment Report 2024: Youth Employment, Education and Skills” co-authored by the International Labour Organisation and The Institute for Human Development (IHD), Mr. Nageswaran puzzled what the federal government might do on the employment entrance “short of hiring more itself”.
“In the normal world, it is the commercial sector who needs to do the hiring,” he identified, whereas itemizing out the facilitative actions taken by the federal government to spur job creation in recent times, such as the ability improvement efforts and the National Education Policy of 2020, which he pressured mustn’t “become hostage to political considerations.”
The CEA additionally pointed to the company revenue tax breaks for wage funds as properly as subsidies in the direction of provident fund contributions and asserted, “Indeed, we can state very confidently now that the tax code no longer favours capital accumulation over employment generation.”
Citing the Nineteen Seventies’ satirical movie Mohammed bin Tughlaq written and directed by Cho Ramaswamy, the CEA stated there may be “an element of truth” in what the movie’s protagonist, who turns into the fictional nation’s Prime Minister and seeks to handle problems like corruption, says about unemployment.
“For unemployment, he simply says, “Look, all I will do is I’ll keep talking on every dais and stage that we have to solve the unemployment problem, and that is my contribution to solving the unemployment problem. Because this is not something I can address.”
Mr. Nageswaran additionally questioned whether or not governments worldwide have been decreasing the motivation to work by means of welfare insurance policies supposed to ‘ameliorate the negative consequences of unemployment’ that ended up disrupting the labour marketplace for the more severe.
“In every public policy intervention, there is always the law of unintended consequences… In general, humans change their lifestyles and habits only when doctors read the riot act on behalf of the human body. Does it not apply to our youth and others in respect of their willingness to work or efforts to equip themselves with skills and attitude towards work?” he commented.
