It seems strange that how employment generation can become philanthropy. Employment is generated by businesses, which make profits. But, we fail to understand that unless the people are employed and have earnings, they cannot spend and ultimately businesses will fail.
This is the fundamental rule of marginal propensity to consume that more the disposal income in hands of lower starta of the society more the propensity to consume or spend. This consumption create demand and hence jobs. Businesses make profits only when their products are sold and consumed.
Though, nobody is accepting a recession, but negative interest rates in many countries is just the symptom of that. Moreover, investors like softbank are ready to burn their money just in the hope that they can make money, when competitors surrender. All this indicate that there is more money with investors than the entrepreneurs need. Is this not recession?
People are afraid that if they start small, they will be wiped out by the large corporates due to economy of scale. If scale is only important, then why the large corporates indulge in outsourcing. It is the right time, people come forward and start or support small businesses just with a view to create more employment. Just put a small money on it and help control law and order around you as jobless youths are more prone to be rowdies.
In India, there is huge crisis of health and education facilities, mainly for the poor. There is huge opportunity for business as well as philanthropy in this area. Whatever you do, society will benefit.
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