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LATEST NEWS UPDATES | Fixing the rules of the economy -Arun Maira

Fixing the rules of the economy -Arun Maira

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published Published on Nov 5, 2020   modified Modified on Nov 5, 2020

-The Hindu

The fundamentals of the game have to change as they currently favour wealthy investors and not workers and tiny enterprises

India has an incomes crisis: incomes of people in the lower half of the pyramid are too low. The solutions economists propose are: free up markets, improve productivity, and apply technology. These fundamentals of economics must be re-examined when applied to human work.

Three solutions

Economists say markets should be freed up for agricultural products so that farmers can get higher prices; and freed up for labour to attract investments. Without adequate incomes, people cannot be a good market for businesses. In fact, it is the inadequate growth of incomes that has caused a slump in investments. Ironically, the purpose of freeing up markets for labour is to reduce the burden of wage costs on investors just when wages and the size of markets must be increased.

Human rights must prevail over economic considerations. Good markets enable smooth transactions between buyers and sellers of commodities. However, humans are not commodities, like agricultural produce and minerals are. Humans must not be put up for sale to the highest bidders which was the practice in slave markets. Human rights activists fought a long, hard battle to abolish the abhorrent idea that humans can be considered as commodities in markets.

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The Hindu, 5 November, 2020, https://www.thehindu.com/opinion/lead/fixing-the-rules-of-the-economy/article33024404.ece?homepage=true


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