Just random thoughts – Government’s job is not to provide jobs itself, but it has to make sure people get jobs.
1. Make people skilled enough so that they can jobs – i.e. provide quality education
2. Give incentives to industries so that they can provide jobs.
Demand increases so production increases
More production means more people are required, this creates jobs
More jobs leads to more money in people’s hands
This creates more demand
Once this cycle starts its impossible to stop it.
Problem is how to start the cycle.
That’s the job of the government. Give incentives to industries to start production, the cycle only needs a push. Government needs to give that push.
Like Gujarat government has done with Nano, it might have given concessions worth thousands of crores to Tata, but Not just Tata but all the other component suppliers will also setup their units in Sanand. It will create an auto manufacturing sector in Gujarat which will create hundreds and thousands of jobs in the coming years.
Government should only do this –
Make policies that benefit people and make sure corporations adhere to them
Provide infrastructure in the form of education, power, roads and railways and water
Provide security – maintain law and order through police and military forces