Monday, September 03, 2018

Can you convince a person to be satisfied?

"India's urban youth remains overwhelmingly pessimistic about job prospects, shows a recent survey conducted by market research firm YouGov in collaboration with Mint," wrote N Kwatra. "Over 70% of post-millennials and 65% of younger millennials think it is 'extremely' or 'fairly' difficult to find a job nowadays." However, SS Bhalla, a member of the Prime Minister's Economic Advisory Committee, is sure that 12.8 million jobs were created in 2017. On a trip to Karnataka, Bhalla met a fisherman with a motorbike who considered himself jobless. Clearly, if the man could afford to buy a motorbike he was earning good money, so why does he consider himself to be jobless. Outrageous. It is a matter of perception. Fishing is a risky profession and returns can be extremely variable. The man wants the assurance of a regular salary in more salubrious surroundings. Like Bhalla. "With more than 90 percent of India's labor force employed in the nation's informal economy, the government has struggled to produce reliable jobs data to even get an accurate read on the level of joblessness in India," wrote Nag and Beniwal. "India has created big wealth for a limited number of people at the highest income levels, but it hasn't created a massive pool of consumers by creating hundreds of millions of middle income class," said J O'Neill. "It hasn't embraced global trade and foreign direct investments in the way China obviously succeeded." "More realistic measures of employment status are (i) worker to population ratio (WPR), and (ii) unemployment rate (UR)," wrote Prof R Nagaraj. Using these two measures, "WPR has gone down from 51 to 48, and UR has gone up from 3.8% to 5%". So, Bhalla and Das's report claiming over 12 million new jobs created "When critically examined, using uncontroversial publicly available and up-to-date official data, the claims do not stand up to scrutiny." "While the share of agriculture in India's GDP has been coming down, its share of employment has been relatively constant," wrote R Kishore. "Agriculture still employs more than 40% of India's workforce." Since a constant portion of a rising population is producing a smaller share of GDP, their earnings must be contracting. "Self-employment is often cited as the solution to India's job-shortage." As when the Prime Minister advised people to sell pakodas to earn money. Lack of opportunities and resulting poverty has resulted in makeshift contraptions, called 'jugaad', to make life easier. Jugaad is holding India back from becoming a world power because it encourages slipshod and often polluting forms of production, wrote D Nelson. The men who deliver parcels for Amazon maybe earning a salary but may not consider themselves to be usefully employed. Arguing with them is not going to make them happier. 

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