1 brainy thing; Connecting the dots
Inflation, industrial production, unemployment, universal basic income
Inflation, industrial production, unemployment, universal basic income
1. Low consumer price inflation (CPI):
Indivjal Dhasmana reports that CPI is at 19 month low at 2.05%.
It means low prices of food, fuel, medical and education.
It’s good for buyers, but not for businesses, as they get less money for their products.
2. Low industrial production
Ishan Bakshi reports that industrial output grew by .7% in November, and 2.4% in December.
It means manufacturing is not growing, except tobacco and apparel.
3. High unemployment:
Radhicka Kapoor writes that 6% unemployment affects youth the most.
36% of employed youth are unpaid workers, while only 17% are in salaried jobs.
High unemployment for youth means generating less incomes, less savings, less captital per worker, and less growth.
4. Universal basic income:
Government proposed to give INR 6,000 per year to rural farmers.
Vijay Joshi reports that a basic income of INR 20,000/ year/ household is possible.
Why does it matter?
Above issues affect Delhi-NCR. Low prices for the businesses will make them insolvent in the long run.
Low manufacturing means low employment for the region. Construction sector is in bad shape.
Basic income in the hands of unemployed youth will help the economy grow.
One good news:
At INR 538/ day Delhi pays the highest minimum wage in the country.