Modi 3.0 is facing primarily two crises:
1)Unemployment and Under employment or lack of adequate jobs that pay well.
2)Widening of gap between the top 1% of the population and the bottom 50%;
Price rise, inflation , stagnating Private Consumption Expenditure, feeling of high GST and IT rates among the youth are all problems of Expenditure when there are incomes and gainful employment.
Unemployment hits the Bottom of the Pyramid more severely than at the top of the Pyramid.
Economists and Political Thinkers have proposed solutions like encouraging and or incentivising the labour-intensive manufacturing and services sector in rural and semi-urban areas.
This is doable but whether such jobs are sustainable in the long run is a million dollar question say e.g Textiles etc.May be Cement , Steel and other metal manufacturing may have long term prospects but Pollution Control becomes a difficult task on hand.
Private Final Consumption Expenditure is languishing for two reasons
1)primarily because of Rural distress exacerbated by poor monsoon last year
2) Pentup demand after Covid drove PFCE higher last year and so on top of that it has moderately increased by 4% in the current year.
The major question of wealth distribution can be attempted through Stock market.
1)Poor i.e BPL families and families of labourers from Unorganised Sector can be asked to subscribe to a Group Fund by making a SIP contribution starting from Re1 and Govt on its part can contribute an equal amount every year.
2)This Corpus Fund can then subscribe to the basket of top 500 of NSE/BSE Companies.This basket can be given at a discount of 25% to Market price thro a special SEBI legislation and when the subscriber wants to opt out, he can be allowed to sell to the Corpus at a premium of say 10% to the prevailing Market price.
3)This will be a kind of Stock Options for BPL families and the scheme can be modified to suit the ground realities.
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