Tuesday, January 1, 2019

Why the workers are angry?

Satyaki Roy 

For the past three decades the working people of our country had suffered the most in terms of their share in high growth that India experienced barring recent episodes of slowing down due to demonetization or hasty tax reforms introduced by the current government. It is now becoming a cause of concern primarily because such declining share of the vast majority of the working population ultimately leads to rising inequality and therefore even international agencies such as World Bank and IMF, those had been otherwise great votaries of liberalization recognize the simple fact of demand constraint setting in,ultimately creating barriers to profitability and growth. The worker is also a buyer and working people’s share of consumption expenditure in additional unit of income is generally greater than that of the rich, so relative decline of the workers’ buying capacity has its impact on the market, it dampens expectation of profit for private investors and hence investment and growth. In the advanced capitalist countries ‘technology unemployment’ is on the rise, use of artificial intelligence, internet of things and robots are going to replace repetitive jobs which has hardly hit particularly middle level jobs and the low skilled workers are at a disadvantageous position worldwide. Various studies suggest that in the next two decades 47 per cent of jobs in the US and 57 per cent in the OECD are at the risk of automation. There is also the effect of cheapening of finance which leads to higher capital intensity and lower requirement of labour employment in production.