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Let Us Create Unemployment!

Sainath is a journalist with a difference. It is not just that he travels and writes from his experience. It is also that he is utterly incapable of integrating his experiences and hence, writes like a socialist club woman. He, in his shockingly offensive article, laments about the sad plight of workers and of the benefits which NREGA (National Rural Employment Guarantee Act) has showered on them.

It should be evident from the very fundamentals of economics that such make work projects as NREGA hamper productivity and aggravate the very problem it was supposed to solve-unemployment. It is well known that such make work projects involve workers in some boondoggling projects which are of no value to the public. Let’s for the sake of an argument suppose it is not so. Let’s imagine that the money forcefully extorted from the tax payer is spent on a project which is of some value to the public. It should be emphasized that still the money for the project is being taken from the tax payer. If the taxpayer is allowed to keep the money he would have either invested it or spent it on consumption. Both would have created employment. It is not just that. The taxpayer has both moral and financial responsibility over the money (unlike the bureaucrat who has only a moral responsibility) and he would spend the money on projects where the work done is of more productive value. Thus doing away with NREGA would only increase employment opportunities. It should also kept in mind that it is immoral to tax some to make job for others.

Let us now come to the root of the problem-why unemployment exists, in the first place? There is nothing as easy as to obtain as full employment. Back breaking employment has been the characteristic of the most poor of societies. It is the minimum wage laws and labor union coercion that leads to unemployment.

When a minimum wage is set, it becomes unprofitable to hire those workers whose marginal productivity is lower than that of that wage. Hence, such workers are fired. The same goes for labor union coercion. When labor unions forcefully keep wages above the norm, some workers are to be laid off, as it becomes impossible to pay all of them. It should be, but, kept in mind that it is not the labor unions as such, but their forceful tactics which lead to unemployment. Such problems can easily be tackled and a full employment obtained by repealing minimum wage laws and labor union coercion.

Is Sainath’s mind so feeble that he can’t conceive of this simple logic? Not, it can’t be that. He is a power hungry monster–a vicious bastard–an abysmal scum, who would come up with anything that would make his political masters happy. Let’s not pay heed to the words of such intellectual thugs.

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