Sunday, April 28, 2013

Subsidised Wages and Ballooning Fiscal Deficit...



Article;

Growth Improves Wages More Than MNREGA


Comment;

Subsidizing wages will not let the market to equate it with productivity and will suppress real wages, and, will result in ballooning fiscal deficit as happened in the US with no real reason. In the US real wages are far below the productivity levels but the government has reduced this gap by fringe benefits which have become a burden now and the government is trying to pull back its support. We should let the market decide that what the real wages should be according to productivity...

No comments:

Post a Comment

"Everybody is worried about rate cuts and nobody for lower interest rates on savings, when all save and few borrow..."

Growth is sacrificed when the value of the money is sacrificed because spending goes down due to inflation, and people buy less due to high ...