Employment

Can Government Eradicate Poverty?

Every political leader, a representative of “the people” realizes that nobody in “the people” like to face poverty. Yet, poverty is wide spread. Every government aims its political and ruling program at reducing scarcity and helping the poor. Often the statist argues that government is necessary because if there will not be a government, who will care for the poor, the depraved ones. Politicians often use this “altruistic” propaganda to lure the voters.
The only practical solution to the problem of poverty in masses is to increase the productivity of individuals. In absence of government interventions, for the rational profit motive, free market provides an explainable way to make most efficient way for the usage of resources and to minimize the wastage, thus free market naturally is the solution to poverty. Yet, by means of interventions, government induces irrationality in the market and hence, reduces the productivity while increasing the wastage of resources. Obviously, with reduced productivity and enhanced wastage of resources, the government itself becomes the cause of mass poverty and scarcity.

Falling Prices is the cure of Deflation

The inflation rate in Indian economy is sharply decreasing since some weeks and now it is around 0.44%. As some economic pundits have predicted, India may face deflation eventually. Obviously, it is an alarming effect of the deep recession India is facing and will have to face.
Is Deflation good or Harmful?
Today’s Economic Times has the screaming article Indian Economy staring at deflation. Is it good news ? in its front page that claims that, deflation is a threat, which must be tackled with.
The most common belief about deflation is that falling prices constitute deflation and thus must be feared and, if possible, prevented.

Are savings bad for the economy?

Saving money is investing in moneyKeynesian economics basically considers two major economic aggregates while checking the health of an economy: the income-output scale, and the savings-investment scale of the economy. The total income must necessarily equal total output, but savings need not always equal investments unless the economy is in a equilibrium. When people decide to save too much for any reason, Keynes argues, the economy would dive into a recession because businesses would have unsold inventories (which in turn induces them to cut jobs and halt expansion). The government could actually play an important role in this situation by encouraging people to spend, or even take the initiative itself and start disposing huge public public spending–all this to get rid off the lack of demand and make businesses sell their products.

The reverse brain drain

America used to be the prime destination of the best and brightest immigrants from whole round the world, but with its stride to adopt for socialism in form of protectionism, and announcements to cull tax reliefs to the companies employing foreigners working on H1B visa and other issues, now America is loosing its shine.
What the dangerous threatening groups like KKK could not do in years, is being done by US government and its protectionist policies within months. Such is the nature of poison of socialism and US is hell bent to take its gulp now.
US enjoyed the luxury of being the strongest magnet for the immigrants for long time, and those immigrants actually made USA the world’s most innovative and technically sound nation, now the lustrous history is about to be faded. India and even so-called communist China are gradually picking up race for being the strong magnet to catch the best minds ready to innovate and deliver ways, techniques and procedures to produce wealth. Immigrants actually can be the major engine of productions, knowledge, technology, economical success and pride and none other than Americans no this reality.
Yet for their newly acquired colors of socialism in form of protectionism, they are at the brisk of loosing that extra edge.

Carbon emission norms: A green initiative

Globalization not only has raised a stage of cultural sharing and expansions, it has provided a wider scope in every aspect of common life whole round the world.
National politics is also not unscathed of the global effects. Out national politics and economics, so much depends on the various global international groups, organizations, planning commissions, treaties and protocols.
One of the most important of them is the Kyoto Protocol and Environmentalism is the new political mantra at the helm.
Almost every other country is now whirling around to cut the carbon emission rates.
Now when there are enough evidences that global warming is nothing but a fake idea, the environmentalist politicians have a new way to rush upon their emotional tactics based on the call to “save mother earth”.

The thieves who stole American Jobs

Thief #1 MachinesA very famous economic fallacy that has won a huge number of supporters has been the belief that machines cause unemployment. Such preposterous beliefs which have neither rational justification, nor any empirical validity have been the roots of growth of primitive ideologies, which have called for mankind’s return to it’s “glorious” past.

For centuries men have believed that machines, or technological changes in general, destroy jobs on a large scale, and that they’d have to stay home jobless the next day on. It is true that technological changes destroy particular jobs, at least partially if not completely, but it should also be understood that these technological changes create new avenues of growth which will create new jobs.