Why reducing agriculture subsidy reduce the unemployment?
When I move the cursor to reduce the agriculture subsidy, it say's that it will reduce the unemployment. This doesn't make sence to me. Who can explain?
Best Answer
Agriculture is labor intensive, so increasing subsidy increases jobs, which reduces unemployment. Lack of profitability for agriculture could be construed as the reason why people move to urban areas looking for jobs, so making it profitable reduces unemployment.
Don't think too much about what the sliders means, they're just modeling the general cause and effect of the policies, not necessarily always accurately or in a manner you agree with.
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What causes downfall in the employment in agriculture?
In our opinion, major internal factors such as insufficient public investment for agrarian development, inadequate access to institutional credit, inadequate irrigation facilities, government's poor agriculture-related marketing policies, half-baked land reform policy, and low return from agriculture are responsible ...What are the negative impacts of government subsidies on Indian agriculture?
Firstly, governments may pay much higher prices for the agricultural products than what the farmers can obtain under free market environment, and. Secondly, by supplying the inputs at a price that is below the cost of supplying these inputs or below at the price that would prevail in an open free trade environment.What are the main arguments in Favour of subsidy?
Arguments in favour of Subsidy : It encourages farmers to adopt intensive cultivation which ensures increase in food grain Production. The number of small and marginal farmers in a country is large who are unable to buy high price inputs. therefore subsidy on inputs is necessery.What are the main argument against subsidies to agriculture in India?
The principal arguments against subsidies are as follows:Fertiliser and irrigation subsidies have widened regional disparities to some extent. ADVERTISEMENTS: ii. The maximum benefit of subsidisation of inputs is reaped only by large farmers, who possess the capacity to buy inputs at higher prices.Policies to correct unemployment
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