Dear readers, after reading few very refreshing books of some creative writers in Economics especially the Micro-writers, my creative side of brain gave some viewpoint & a non-conventional one indeed. Friends, there's always a strong thinking & belief that Entrepreneurship expands employment i.e. increases no. of people having jobs. This fundamental viewpoint seems correct in short-run but I believe its validity is questionable in long-run. Resources are scarce & Economics is a science of scarcity as Robbins has very beautifully expressed. Keeping the fact that resources i.e. Land, Labor, Capital & Entrepreneur are scarce, an increase in number of Entrepreneurs would:
1. Increase the demand for these resources namely Land, Labor & Capital.
2. Expand the existing scarcity
3. Due to scarcity i.e. Demand being greater than Supply, Prices shall increase in Long run & may be even in short run...
4. Thus demotivating future entrepreneurs to begin a business.
5. Thereby reducing Job creations
6. Unemployment shall occur as People searching for jobs will keep on expanding as Greaduates & PGs will keep on entering the industry in search of jobs.
Thus IN MY VIEW, increase in Entrepreneurship increases UNEMPLOYMENT in long run though not maybe in short run. Feel free to express your views.
Bhagirath Baria
- Bhagirath Baria
- The Author of this blog has keen interest in understanding Economics and its implications on the Individual and the Economy as a whole. Has been writing articles and analysis of issues that may skip general observation, but exert deep influence on people's lives and their decisions. Discussions and Debates related to conventional as well as non-conventional Economics is done here. The author of this blog doesn't classify himself to any particular School of thought in Economics. He is tilted toward Mainstream Economics, though has keen interest in a few Heterodox schools too. Wishing all the readers a truly enriching experience.
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Agree with you to some extent. However, you are not totally correct. Think again upon your views there may be many contrary views with different assumptions.
ReplyDeleteChintak