BC SOCIETY
Saved by @Mollyycolllinss

Seen a lot of people aver the following, "but where are the jobs?" in response to someone asserting the need to incentivize the movement of our people from agriculture to industry.
Well, here's one major part of the big answer: Labour reforms.

Thread👇

 I think people haven't fully realised the potential of inducing flexibility in labour laws and reducing the regulatory cholesterol that has tarred our system for decades.

Rajasthan State government introduced the labour reforms in 2014 wrt +
+ raising the threshold levels for applicability of different acts, dispute resolution etc. (Refer to images for a more detailed understanding of the reforms)
Based on this, the Economic survey of 2019 (Chapter 3) notes the following improvements in Rajasthan's MSME network:

1. India has a major problem of dwarf firms i.e. firms that remain small despite being old and are not able to employ more than 10-20 workers.
Well, after the reforms, Rajasthan has witnessed a significant rise in number of firms with more than 100 employees as compared to the rest of India. (refer graph)

2. The number of factories establishing with more than 100 workers were growing on an average of 3.65%, +
+ and two years post labour reforms, the growth accelerated to 9.33%. On the contrary, the growth for the rest of India clocked a 4% average growth rate only.

3. The most important point: the average number of workers per factory in Rajasthan increased at the+
rate of 4.17% in 2016-17 as opposed to a decline i.e. -8.9% in 2011-12.

Here are some interesting figures from the Economic survey highlighting the significant improvement in the situation of Rajasthan as compared to the rest of India. (They really need to work on aesthetics)
Now, very similar reforms have been enlisted in our labour codes that have the ability to create massive employment and enable our firms to hire radically and create a vibrant labour market. The farm reforms along with the labour reforms present +
+ India with a focal point to set our terms of trade between agriculture and industry right, and in a very gradual manner.

Excessive and absurd labour regulations have been one of the biggest reasons for our inability to grow a thriving manufacturing sector with a large labour+
+ market. For people who are interested in reading in-depth about the labour reforms, their significance and the history of labour laws in various states can refer to this paper that I co-authored.

https://t.co/J8oA2goRLr
Source of data and charts: The Economic Survey of India 2018-19, Chapter- 3, Nourishing dwarfs to become giants: Reorienting policies for MSME growth.

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2/The biggest myth, I think, is that universities help regions by educating locals as undergraduates.

Skeptics of universities say: "But most of the people who graduate end up leaving."

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Krugman is, of course, right about this. BUT, note that universities can do a lot to revitalize declining and rural regions.


See this thing that @lymanstoneky wrote:

And see this thing that I wrote:

And see this book that @JamesFallows wrote:

And see this other thing that I wrote:
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It's been a systemic problem since the founding of the country (indeed, before the founding of the country) and has contributed to the church being complicit in chattel slavery, Jim Crow, cointelpro, redlining and a host of other things the Bible condemns as sin.

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Capitalism demolishes society and, with it, itself.

A thread.

1/

Prior to capitalism, there were plenty of elite-centric, exploitive systems in place. European and Japanese feudalism. Roman mass slavery. The corvee labor of the ancient hydraulic state. Etc.

2/

But as exploitive and repressive as these systems were, they still retained some sense of mutual obligation among classes. Elites depend on the masses to survive and thrive. You can only exploit them up to a certain point, beyond which you threaten your own labor supply.

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Consider this quote from Kenneth Jupp on European feudalism. Feudalism entailed *mutual obligations* between rich and poor.

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