POLICY FOR Full EMPLOYMENT
To create I state of full employment is nut an easy job. No simple and straight remedy can he prescribed for thc purpose, There is no panacea which .,all cure
a country of unemployment nt ami create conditions offull employment. The problem has to be I ought on all fronts and a comprehensive policy convincing the various aspects (1f thc economy has to be formulated. It Will (I) Fiscal Policy (2) Monetary Policy (J) Income Policy t”‘, Price Policy(51 International Now a word shout each “I’ the above policies, Policy for Full Employment The principal of Fiscal policy is thc public finance or the budget. It involves purposeful manipulation of public . laxatiun and public debt. This is know n a functional finance. Public expenditure, taxation and public borrowing have to he geared to fight inflationary and deflationary tectonics so that on an even l. The level of full classical economists were more concerned with the fuller localisation of resources III relation to the manpower resources. Though prior to the classical economists. the early thinkers put this concept indirectly in the achieve an economic equilibrium with the assumption form of wealth (i) The physiocrats were of the opinion of labour equality or “work according to your ability that, that country is the wealthiest country which pos- and take according to your needs.” Human being is
scsses huge amount of cultivable land, be (this is prior very i ntelligent and if utilised with proper means, than to modus prosperity more cultivable land, more ern- . economic technical prosperity is not impossible. ployment more output and operate of the economy. The keynesian revolution which emphasised more (ii) The merchants on the other hand concentrated more on role of government ithout interfering in tile ceo- . on the material aspect, in their opinion, a country is nomic activities of the people. The so called welfare rich because of its material wealth in the form of gold, slate concept” with the help of important weapon of silver and other precious metal, etc. (iii) Adam Smith fiscal policy i.n the form of th theory of pump-primwasthe first to elaborate this concept in a more re- ing was responsible for new economic revolution. fined way, thai a country’s wealth is nothing but the Keynes attack on classical theory, and the functional aggregate productive capacity of its citizens. As.Adam finance approach, gave a new l ase of life to political Smith laid more emphasis on Laissaz-Fair economy economic philosophy. Politicians with their hidden as well as on the invisible hand concept. If the masses agenda moved ith the weapon of discriminatory Sofia a country is hardworking and productive than that cal policy essentially in the form of deficit finance, country can be referred as the wealthiest country. In tJ control and achieve their political objectives along modern concept the Japanese economy can be Adam with to same extent the object ive of full employment.Smith’s ideal, full employment developed wealthiest Keynes concentrated more on the “Principle of Economy concept. festive Demand” to raise the level of economic devel- J. 11.say a french economist evolved a theory of envelopment. He took into account only certain rational employment on the basis of supply creates its own assumptions of consumption function and investment demand. According to the classical economists that function. Keynes main set back wa that of techno there always exists.