Ch-10 - CHAPTER 10 Unemployment Introduction Unemployment...

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C HAPTER 10 Unemployment Introduction Unemployment is a great problem. You might have seen or met people who are not having a job and you might have noted anguish in their utterances. The phenomenon shakes the confidence of the people in the system. The basic premise for many of us is that all able-bodied persons above a certain age (say 15 years) and below a certain age (say 60 years) must work if they are not pursuing any other useful avocation like higher studies (or engaged in home-making) and the system should permit them to work. There are others who think that all those, from the above set of people, who are willing to work must be allowed by the system to work. There are still others who think that at least those, who are actively seeking work, must get work. The basic idea is that a person who is just a consumer without being a producer simultaneously will not be a good and responsible citizen. ‘From each according to one’s capacity’ must be a dictum for a good healthy society as should be ‘to each according to his needs’. For being a producer, one need not be a worker in ordinary sense of the term or work under somebody. One can employ others or employ oneself or get employed under somebody. They are all considered employed as they are usefully engaged. Workers are either self-employed when they produce goods and services and sell their produce themselves to the customer or wage- employed when they sell their service to others who sell their produce to customers. Some Important Observations Children and Adults Unfortunately, while a few below the age of 15 and many above the age of 60 and not fully fit are compelled to work, many people in their prime age (between 15 and 60) and seeking work (or willing to work) are forced to stay idle. As a society grows in civilisation, it should stop using its children. Use of children in work is equivalent to denying them childhood and stunting their youth. It should be taken as a sin; the right of the children not to work, even if it amounts to playing rather than schooling, must be respected. But, when it comes to youth, they must participate in a useful economic activity and the society must allow them to do so. It is through such engagement that their energy and creativity finds
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134 INDIAN ECONOMIC DEVELOPMENT expression. It is criminal on the part of the society not to make good use of its youth force. It is doubly criminal to turn them into dull adults and old persons. The scene is quite perplexing as there exists employment of children whose rightful place is school and playground and non-employment of able-bodied adults. Implications of High Unemployment High unemployment is both economic and, social problem. It is an economic problem as non-utilisation of this resource involves double cost of maintenance and loss of output. During the period of the Great Depression, industrialised economies, including the UK and the USA, suffered from unemployment rate of around 20 per cent and a loss of 40 per cent potential output. They occasionally reach a very
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This note was uploaded on 04/20/2010 for the course CEDT 601 taught by Professor Ypr during the Spring '00 term at Indian Institute of Technology, Kharagpur.

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Ch-10 - CHAPTER 10 Unemployment Introduction Unemployment...

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