So, are we saying 'Capaitalism' as the world knows doesn't work for India? What happens if the business loose its revenue. Will government pay the dues?
With the sacking of nearly 1900 of its staff by Jet Airways turning into a political sensitive issue ahead of elections, a worried Congress today disapproved of the hire-and-fire policy and bluntly told the industry that "India is not America".
"Hire and fire is not a proper labour policy... Hiring them recklessly and then firing them recklessly is not proper. We do not approve this," Congress media department chief M Veerappa Moily told reporters in New Delhi
Global Recession : Is It The Fall of Capitalism?
When I was discussing this quote by senior Congress leader with a journalist from Hyderabad, he did resonate with the thought. He questioned, the US Government bailing out is not different than what we normally see in a Communist or a Socialist regime. US Financial market blow exposes the fundamental limitations of Capitalism that we know of.
Just making 'profits' and 'hire and fire' policies of today's capitalism does not concern about National interests and doesn't fundamentally look for uplifting the nation. So a socialistic or capitalism with a better outlook and responsibility is the way to go.
In that sense, 'hire and fire' is bad for Developing country like India, as nation expects these corporates to assume some social responsibility to help the nation, not just their bottom lines.