I was thinking how do
government increase employment? Does that mean they will increase government
jobs and employ promised percentage? Which is never possible.
I would like to tell you
a small story.
A man was riding on a
horse with his dog during a hot summer, after some distance horse felt thirsty
and it could not carry any load hence both man & dog had to get down and
start walking along with the horse. After some distance they found a pond which
just had little water (just for a person & dog thirst can satisfy or the
horse alone) .
Given the amount of
water
1. All three can
share the given water - such a way that all three can start walking
2. The man and
dog can fulfill their thirst, but the horse has to remain in thirst
3. Horse can
fulfill the thirst, man and dog has to remain in thirst
Of these which option do
you prefer? Assume if we choose option
Option 1- All
three will share small portion of water, and all three can start walking
independently - sound
like a right choice, but let’s look at the other options
Option 2 - Horse
may die, or the man & dog probably have to carry the horse
- Which is not quite possible so let’s not choose that.
Option 3 - The horse can carry both man & dog and start the journey as it be-ginned
Now with option 2 ruled
out. Out of option 1 & 3 which one do you prefer?
Option 1: All
three will be alive, but all three have to walk
Option 3: Since
the horse thirst is fulfilled, it can take them to the destination faster but
there are chances the person/dog could die of thirst.
Now let’s replace the
characters, here the horse is a company and man is the employee and dog is just
another character.
The fact is company
carries people. In order for the people to be employed companies should do
well.
Now let’s go to our
story, if our economy is in deep crisis i.e., all three are struggling for life
I think it’s a safe bid to go with option 1 for time being, once the situation
improves change the policy towards option 3. i.e. in this case lets go with
option 1, and assume after some distance there is similar quantity of water
available in that case prefer option 3 by doing so horse can carry people which indirectly saves person/dog energy.
Moral of the story:
Ultimately the
government should ensure companies does well in order to increase employment.
Below are some of the
things i think can improve our economy / employment
Reduce company Tax (Esp for Small/Mid scale industries):
If
their products are consumed in India - so that products will be cheaper for
people
if the sector capable of providing more
employment
Consumer Product
Tax:
Indian
product (used by low/middle class - essential products) tax should be
reduced
Revise Individual tax:
Need to take statistics of salaried people, and ensure only the lower / middle
class people does not have to pay direct taxes. say for 3 lakh - no
tax, followed by minimal tax upto 6 lakhs.
The idea is people
should have money, so that they can purchase products (indian products should
be cheaper in our market) it can increase production - which in turn will
increase employment
Company tax cut, will
result in more production -
so more employees can be added / may invest in other sectors
etc..
consumer/people will have to pay less than earlier, that
means they will purchase another product in the saved money or invest the saved
money. In either case it will be beneficial for the
government.
Now with all these tax
cut, how do government earn?
More production means,
more rawmaterial purchase, more employment/trading, more purchase (more
consumer tax), gradually no of individual tax payers will also increase.
Rather than taxing huge
money from a small group, we should tax small money from large group!
