Sigatoka,
1. Size is not determined by the policies of the government but by the guts and gumption of the people of a nation and also by the policies of people who run the private sector.
2. It will only happen when pakistan and pakistanis will make a decision to be the number 1. For the moment alots of them are just talk, just waiting to see where the chips fall and then they will join in without taking any chances. There are a very few of those who really have a vision and a gameplan to take the plunge.
3. America is the # 1 nation because the employers pay a comparatively reasonable wage to the workers. The system is designed as such that as much a person makes, so much he spends and more.
4. This keeps the money in circulation and everybody is happy, wants to work harder to make more and have a better life.
5. If pakistani employers started paying better wages and profit sharing to their employees, pakistan will be on a fast track to success.
1. I could not disagree with you more.
2. The people of U.S., Europe, Japan, China, Africa have no difference apart from the superficial differences in complexion and language. If the govt. of these respective nations pursue good policies that free the people from artificial constraints, you will see an economic boom on a an unimaginable scale in Africa similar to what has/is occured/occuring in China.
3. The people of U.S. are paid more because they are more productive than than employees elsewhere (which is due to a lot of reasons). If what you say is true, than i can start a biz. in Pak. pay far above market rates and clear the competition. This is patently untrue.
4. A classical Keynesian I see, unfortuantely your policy recomendation is a recipe for hyperinflation. What Keynes said was that sometimes in a depression wages are sticky and dont go down, therefore people are laid off and production pluments with factories empty. In such a case, the govt. pumping cash into the economy (with lax monetary policy) can boost it to ful output. Let me tell you a fact, Pak. productive resources at the moment is fully employed, this means that boosting wages (whether by fiat or idiot bosses colluding to do so, or unions) is only going to feed into inflation. All you get is more money chasing after the same amount of goods produced, this should be intuitive, increasing cash doesnt "magically" increase production of the economy.
5. I disagree again. Profit sharing makes sense only for top level managment. The reason is that unless compensation is closely correlated to perfomance, it is not very incentive inducing. For e.g. a worker whether he works hard or poorly is not going to affect the profit of the biz a lot and therefore hard working and poor working workers will get same bonus in a profit sharing scheme. On the other hand, the decisions that high level managers make has a huge effect on the profit of the biz. By giving him share options, you make sure that his decisions are aligned with that of shareholders.
For workers its cheaper to pay supervisors to check on performance and hand out bonus's by observation.
Forcing profit sharing shemes is only going to increase unemployment, reduce investment and training offered by biz to workers and will also lead to some biz. shifting investment overseas.
