Re: Minium wages, competition and 200 years of success.

["BDP India" <bdp.india@mailexcite.com>]

Sanjeev:

I think you can get both economists on both sides of the issue. In India, even if
there is a minimum wage law, it is just impossible to implement it. There is no systems
in place to track revenues, payrolls and a real tax system to have a clear idea of
economy itself. Such lack of systems has created an huge black economy. Black economy
will thrive till we do not bring and enforce legislation for businesses to track
and report their incomes and put severe penalties to uphold the law for average citizen.


Thanks,

Utkarsh


Snippets on high minimum wages and the role of competition.
>-----------------------------------------------------------
>
>From "God is in the Details" By Robert Samuelson, Newsweek 20th April, 98
>
>"Europe's high unemployment (10 percent) is no mystery. Generous
>government benefits reward the jobless for staying idle.  High payroll
>taxes and minimum wages discourage companies from hiring by raising labor
>costs... 
>
>"The secret of the U.S. economy is that, despite many flaws, its amalgam
>of incentives still operates constructively. Companies face competitive
>pressures to improve products and profits; people generally do better by
>working than loafing; the urge to 'make it' spurs creativity."
>
>Lessons for us:
>
>a)	Keep minium wages to a low level, if it is necessary to have them
>	at all.
>
>b)	Keep the economy on its toes and globally competitive.
>	
>This is the only fool-proof long-term way to succeed. The US has handily
>beaten India **even after independence** in per capita income growth, and
>it has kept up this performance over nearly 200 years. How can one argue
>with such kind of success?
>	
>A powerhouse of competition and creativity, is this USA, which has
>attracted and continues to attract hordes of Indians (most of the people
>on this list, for instance); people who abandon their dormant and subsidy
>(beggary)-riddled motherland in favor of the land where you can 'make it'
>if only you compete hard enough.
>
>PS:
>
>I notice that some (almost all, surprisingly?!) members on this list are
>suddenly quiet. Is it that people are not getting these messages, or is it
>that people think that this list is my "mouth-piece" (false: this is a
>discussion list; I only got it opened because of the great discussions
>that were going on earlier; I could continue pouring out my daily ideas
>into my book which takes much time to write and revise constantly), or is
>it that everyone agrees to what I am saying, or is it that people are too
>busy (I get to sleep only an average of 5 hours a day for weeks at a time; 
>are you guys busier?). 
>
>A manifesto cannot be built without participation and debate. I thought we
>were supposed to tap into each other's brains and come out with points and
>ideas. So, please become somewhat more active ...
>
>
>
>
>
>
>
>



Free web-based email, Forever, From anywhere!
http://www.mailexcite.com