Some ways to create more employment in rural areas
Answers
Answered by
1
There are a number of ways to create more employment opportunities.
1. The most mentioned strategy would be expansionary fiscal policy.
The Government increases its spending and in turns increases the aggregate demand of the economics. Hence, the social output level rises and more employment opportunities are created.
For example. The New Deal led and implemented by Roosevelt has spent enormous amount of resources on building public infrastructure such as dams and highways. These projects provided numerous jobs for construction workers, project managers, manufacturers and engineers.
New Deal also provided much financial assistance to the poor by giving out direct payment. It increased the needy citizens' purchasing power. As these people had higher propensity to consume, the overall demand of the economics rose drastically. Therefore, social output as well as employment opportunities shot up.
This policy subjects to the availability of government reserve. If the government is already facing deficit, such policy might cause even more problems in the future. On the other hand, if the government has accumulated much reserve, this policy can be a good option.
2. Another popular strategy is expansionary monetary policy.
The central bank can lower interest rate. Lower interest rate discourages saving and provides greater incentive for consumption and investment. Hence, aggregate demand rises. Again, social output and job opportunities increase.
A good and current example of that is "Abenomics" in Japan. The Bank of Japanese has lowered its interest rate to an almost unprecedented level. It not only increased consumers' spending and companies' investment but also caused great scale of hot money outflow. The supply of Yen increased in the Foreign Exchange Market. As a result, Yen depreciated. The demand for Japanese goods and services increased. Of course, greater demand led to greater production and jobs.
This policy would lead to inflation, so it would not be wise to adopt it when the economy is already facing high inflation. Conversely, if the general price level is falling, such policy might just "kill two birds with one stone".
1. The most mentioned strategy would be expansionary fiscal policy.
The Government increases its spending and in turns increases the aggregate demand of the economics. Hence, the social output level rises and more employment opportunities are created.
For example. The New Deal led and implemented by Roosevelt has spent enormous amount of resources on building public infrastructure such as dams and highways. These projects provided numerous jobs for construction workers, project managers, manufacturers and engineers.
New Deal also provided much financial assistance to the poor by giving out direct payment. It increased the needy citizens' purchasing power. As these people had higher propensity to consume, the overall demand of the economics rose drastically. Therefore, social output as well as employment opportunities shot up.
This policy subjects to the availability of government reserve. If the government is already facing deficit, such policy might cause even more problems in the future. On the other hand, if the government has accumulated much reserve, this policy can be a good option.
2. Another popular strategy is expansionary monetary policy.
The central bank can lower interest rate. Lower interest rate discourages saving and provides greater incentive for consumption and investment. Hence, aggregate demand rises. Again, social output and job opportunities increase.
A good and current example of that is "Abenomics" in Japan. The Bank of Japanese has lowered its interest rate to an almost unprecedented level. It not only increased consumers' spending and companies' investment but also caused great scale of hot money outflow. The supply of Yen increased in the Foreign Exchange Market. As a result, Yen depreciated. The demand for Japanese goods and services increased. Of course, greater demand led to greater production and jobs.
This policy would lead to inflation, so it would not be wise to adopt it when the economy is already facing high inflation. Conversely, if the general price level is falling, such policy might just "kill two birds with one stone".
Answered by
2
Answer:
More employment in rural areas can be created by taking following steps:
Farmers should diversify agriculture and adopt horticulture, animal rearing, organic farming, pisciculture besides farming.
Government should take necessary steps to provide loans to farmers at cheaper rates and from formal sources of credit.
Similar questions