Opinion - Letters to the Editor   

On economic crisis

This refers to the article “Reflections on the global economic crisis” (March 9). It is true that it is the lack of adequate purchasing power that is at the root of the global economic crisis. The only solution is the creation of employment and increasing labour productivity. During recession, the private sector will not venture to invest. In fact, it will reduce its investment. The state, therefore, has a major role to play. In India, there is abundant potential for creating employment in the infrastructure sector, particularly roads, railways, irrigation and housing. The government should come forward with huge investments in these sectors.

A. Leelamohan Rao,

Guntur

The article was illuminating. One of the solutions to large-scale unemployment lies in encouraging the labour-intensive sector by increasing public spending on it. Next only to agriculture, education — primary and secondary — is one labour-intensive sector that needs little or no capital. Let the government build hundreds and thousands of schools which will give employment to lakhs of teachers, provide work for construction workers, put purchasing power in the hands of a large workforce and, more important, turn the economic crisis into a great opportunity.

S. Narayanan

Chennai

Competition among producers has forced them to adopt capital-intensive technology. We are slowly moving towards an automated mode of production, which results in jobless growth, low income and low aggregate demand. The solution lies not in the reduction of taxes but in the creation of jobs. This can be done by promoting tiny and small-scale industries whose products can be subsidised by the government so that they can survive in the market.

K. Alamar,

Karumathur

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On economic crisis

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