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Easier said than done, but govt has to balance three sectors of economy

The most important policy issue today is how the government can stop spending taxpayers money on labour and financial markets so that the real or production sector can pick up.

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4 min read Last Updated : Dec 28 2019 | 9:22 AM IST

All economies can be divided into three major sectors: product or real sector, labour sector and the financial sector. It is the duty of governments to keep the three in rough balance between themselves.

This balancing is not hard when the three sectors are booming or even merely doing well. It’s like an aircraft that’s in level flight experiencing some minor turbulence. The pilots only have to make small adjustments to the controls.

ALSO READ: Govt must batten down on expenditure, play long innings to fix economy

However, it’s the opposite when some or all of the three sectors

Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

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