Extent Disguised Unemployment
Further, it is most likely that the type of people who are transferred from the village are backward and Poof. Hence, the wage goods released may be of the lowest consumption level. Consequently, the savings so made may not be substantial and worthwhile.
Another difficulty relates to the procurement of food grains from the farming population left behind in agriculture and making it available to the tarn.furred labor in their new place of work. Will the Government collect it by means of a tax or through procurement at fixed price or will it require the transferred labor to purchase it in the free market with the cash wages paid to them? Thus, it is very difficult to procure food grains and to arrange its distribution among the transferred labor. The Governance will be powerless to collect such large quantities of food grain by means of a tax. If it is compulsorily procured a Ii. ed prices, payment in cash will have to be made to the farmers aim they will spend it on the purchase of other commodities. This means that the output f I trial consumer goods will increase
This doctrine may well walk socialist country like the U.S.S.R. and China where the McGovern can compulsorily procure food grains from the farming population without paying any price and use it for feeding the transferred labor. The Government, can also compel the people to keep their consumption at the old level. But such things are simply out of the question in a democratic country like India. Hence Saving potential ill disguised unemployment cannot be used for capital formation without increasing consumption. It is true that some people in India were persuaded to give their Cree labor for the community under the leadership of Zachary Vino Havoc but its impact is negligible. Also, under the community development programmer in India people have been asked to give their free labor for the construction
There is another formidable difficulty of identifying the disgustedly unemployed labor in agriculture. Who is going to pick and choose to transfer this labor elsewhere, the state or the fanning families or such workers will themselves opt out? In actual practice, it will be found that the task is not only difficult but impossible. Agricultural operations provide work for all young and old and even children. Some persons arc fully occupied some time and some others at other times. It is very difficult to lay finger on those workers whose marginal productivity is zero. Because calculation of marginal productivity itself is too difficult a task to be lightly undertaken.
The difficulties mentioned above are quite real and the doctrine of surplus labor as a potential source for capital formation as propounded by Nurser suffers from serious limitations. But the phenomenon of disguised unemployment in the underdeveloped countries cannot be denied. It does constitute a potential source of capital formation without putting undue strain on the economy if the Fulfillment concerned can devise an effective way of putting it into practice. The under-developed Courtesies, which suffer from capital deficiency hut which are keen on economic development, have to make a start in capital formation and Nurse has suggested how it can be done. The central idea of the scheme is to avoid wastage of resources, natural or human an. to make optimum localisation of them by transferring them from less productive uses to more productive u es and to increase the G.N.P. Looked at from tolls angle, the doctrine is based on sound economic Logic.