Question

Due to the Lock Down to contain the Covid-19 pandemic, many self-employed and low income people struggle to fulfill their basic needs. Suggest your recommendations for the government and firms to address the issue of basic needs fulfillment during this difficult situation. As detailed as possible, elaborate on at least a total of five recommendations.

Answer 1

The recommendations are as follows:

1. The first and most important, issue all the dues, arrears and current month salaries to their employees, temporary workers , firm's own consultants and third party independent vendors who have already given their services and waiting for the payments. Holding out salaries and payments It will given these people some cash to pursue their day to day livelihood. after all , lockdown is not a reason to hold on to these payments by the firms.

2. The second recommendation is to deliver direct cash into the accounts of lower income groups, farmers and lower middle class people so that they can spend to meet their daily needs. It should be on a categorical basis such as family size, income already earned and other demography factors. Besides, government should also bring benefits in terms of distribution of food items to each home via their own public distribution system. It should also be on a repeated basis as the period of lock down prolongs.

3. The third recommendation is to provide easy loan assistance with deferred payment plans, relief in business taxes and other relief measures for the self owned businesses and smaller firms and those enterprises who want some help from the government.

4. The fourth recommendation is for the firms to not fire their employees, rather channelize their resources with salary cuts of different ranges from say 20% to 50%, partial employment to the employees and or involving then in work from home opportunities. It is better to work and earn some income for living expenses, rather getting unemployed completely. Firms can also deploy their employees in some volunteering opportunities so that some social work is done for the benefits of the community.

5. The fifth recommendation is for the government to help these firms meet their financial commitment to their employees and some part of the burden should be taken up by the government. It will also encourage the firms to remain honest and ethical in their approach while dealing with the employees. So, it is the government, complementing firms to remain strong and fight with the setbacks related to lockdown.