Tuesday, March 3, 2009
Countering the Economic Recession: Impact of the Sixth Pay Commission
The economic recession has resulted in pay-cuts and job-cuts also. One of the driving force behind the previous boom was hefty pay-packets of the private sector. Now, since private sector is gripped by a fear psychosis. People are not only forced to accept substantial cut in salary, they're also under constant fear of losing there job any day. This uncertanity has put reins to their habit of extravagant spending . This could've deepened the crisis further due to shrinking demand. But a countervailing force in form of the Sixth Pay Commission came and the government employees got a sudden surge in their purchasing power. They had unsatieated demand and the Sixth Pay Commission made funds available to saturate this demand. This is one of major reasons why India is comparatively less severely affected with the global recession
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Yeah I agree. Although India has suffered but the impact was much less when we compare it to other western countries including US. As majority of people are dependents of government employees and with the announcement of sixth pay commission which had served as a positive sign for Indian Economy.
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