Thinks 463

Sridhar Krishna and Anupam Manur: “Roughly 18 million Indians turn 18 every year, of which a large majority enters the workforce. Additionally, at least 100 million people need to get out of the low productivity and low-wage “jobs” in the agriculture sector — the disguised unemployed — and move into more productive non-agriculture jobs. Finally, there’s the stock of unemployed, which amounts to roughly 200 million Indians who need a job today. These do not show up in unemployment numbers in a country where the labour force participation rate is below 42%, the lowest in comparable emerging economies. The required rate of job creation is at least 20 million each year — a target removed from the government’s subdued ambition. The consequences of a large population of unemployed youth can be drastic for India’s social fabric. Unless India creates 20 million jobs every year, we are going to increasingly witness unrest, demands for reservation, political activism, and heightened societal disturbances.”

Arnold Kling: “My experience is consistent with the view that working in profit-seeking enterprises has the highest probability of producing positive social change and the lowest probability of causing social harm. Profits and losses provide valuable feedback on how well you are serving customers with the resources that you employ. If you work at a think tank, the ultimate customers are the donors. A major accomplishment at a think tank is getting a policy proposal enacted. One can hope that this in turn produces positive social change. I think that this mechanism is less reliable than seeking to produce change in the private sector.”

WSJ: “The idea of a spontaneous order emerging from chaos may sound implausible. But in nature it is ubiquitous, from the self-organization of snowflakes and flocks of birds to the hexagonal basalt columns of the Giant’s Causeway in Northern Ireland. The chemist and philosopher Michael Polanyi, and later the economist Friedrich Hayek, pointed to spontaneous order in human affairs by stressing that markets produce an orderly system of prices and production from the chaos of the marketplace. Perhaps it is also the case that the order of language arises not from a hard-wired instinct within the genes and mind of each individual but from the cumulative result of social interactions among individuals.”

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Rajesh Jain

An Entrepreneur based in Mumbai, India.