India, under the leadership of Modi has recently announced a financial package to help all segments of people in the country. The approximate value of the package is 263 billion USD and people are laughing at it. Modi has again proved himself unworthy of leadership because there's no direct help offered to any segment of people. He has just made a lot of loans available for all. Let me summarize the entire scenario with a beautiful story. The author of the story is unknown.
The story:
My neighbor Alex works for a pen factory. One fine morning, he came knocking my door. After few pleasantries, he asked for monetary help as his factory is closed for last 2 months due to the COVID induced lockdown and he was not paid his salaries. So he asked for some money so that he can feed his family. After listening, I requested him to come after 2 days and promised that I will arrange something for him.
After 2 days, Alex again came knocking my door. Today I offered him a cup of coffee and after few pleasantries I told him that, I have had a discussion with the local bank manager and arranged for a loan of $100,000 for his pen factory owner. So I asked him to speak to his pen factory owner so that the owner can get the loan from the local bank to resume his production and send the manufactured pen to the market. Once the pens are sold, the owner can then pay the installments of the loan and also pay the salaries of the employees.
Alex fainted!
My conclusion: The entire package doesn't talk about any direct help for the people. It only talks about cheaper loan availability to the industries. A classic example of directionless leadership.
What do you think?
Your post makes me wonder about a lot of things. Does India have any social protection fund or welfare for unemployed people? For example, when employees signed under contract with companies, there is usually a clause of unforeseen situations where the company must halt their works, they could pay their employees with salary-but-off-work (amount of salary is negotiable between employees and companies when such thing happen). This is just a temporary way to keep employees not completely out of company and also help them have a workforce ready when the situation back to normal (usually for a few months). If not, then do workers pay some kind of tax that when they become unemployed, they could apply to receive some benefit. Although not much, just enough to keep them afloat to looking for a new job.
This is normally how I see from the workplace so aid package should aim toward 1) company and 2) unemployed. Low interest loan ain't going to help much especially only aim at the company when thing hasn't back to normal while unemployed still have mouths to feed.
