Post
Topic
Board Economics
Re: COVID AND INDIAN ECONOMY
by
Yaunfitda
on 23/06/2020, 09:31:56 UTC
How can people buy more goods and products while they have lost their jobs?

The solution lies in increasing government spending on projects and companies that employ a lot of workers by keeping them in their jobs and trying to pay part of their salaries.
This is the best solution, however, if government doesn't have enough money, then it will be very hard not just for India but for the rest of countries whose national budget have been depleted in the last three months.

It also has to give direct subsidies to those who have lost their jobs and thus more money that can encourage demand if markets open and commercial activity returns to Normal positioning.

This has been done by the government itself, but with billions of population, it is not sustainable.

The worst solution would be to print more money, but printing money is not as bad during a crisis.
But it could have a negative impact in the long run. They should open up their economy specially small to mid companies so that those who still have jobs can have purchasing power again and pump and stimulate some growth.