"Do Machines Evict Workers? Or Employ Them?" by Shoaib Kiani

Man is striving to make the arduous things easier. In this regard, he has created a world of machines. Machines have surrounded us and the inventions are still in evolution. I have hundreds of machines in my house just like oven, fridge, fan, TV, door locks, and even the needles. Machine is anything that reduces the human effort. Wherever we go and whatever we do, machines help us. In today’s discussion the word machine will mean the machine used in production process. Definitely, they are also helpful in reduction of human effort. Machine faster the production process that is retarded by the man with empty hands. I extol the work of scientists and engineers for the evolution of machines. They are making the life so easier that it was not before.

The labor earn what they effort for but the machines in production process reduce human effort. When a producer introduces a machine, it swap a number of workers. To elucidate this discussion let us take an example of a elevator that is used in a warehouse to drop heavy bundles at third floor. It shifts one ton of cotton in a couple of minutes. Ten workers (Hypothetically) shift the same weight in an hour. In that case, the warehouse owner uses this lucrative input. The workers become unemployed and warehouse owner installs a lift in his warehouse it saves time as well as money. Moreover, frees some space to keep more cotton.

 From this side of picture we see extensive number of workers being unemployed. 

On the other side, machines are creating employment. Economists use the terms “backward and forward linkages” among the industries. We will also use these linkages for the explanation of role of machines in creation of employment. To understand these linkages let us take an example of the same weigh lift that unemployed a number of workers in warehouse. Backward linkages of lift cause employment. We will see some labor working in the building and installation process of lift. The steel mill workers are also linked behind this lift building process. Belts, motors and lift wire manufacturers have employed a massive number of workers.  Forward linkages: when some workers are employed as technicians, electricians, and maintenance staff. It has a forward linkage with energy (electricity, fuel etc.) as well, that also employs a number of workers.  Some warehouses appoint lift operators. .  A number of workers is engaged in loading and unloading the lift. From this angle of picture, we see three or four time labor employed linked with one lift.

Let us take another example of use of machine instead of obsolete ways of production. In a traditional cultivation process, a small-scale farmer uses a pair of bulls to cultivate his fields. The only input to keep these two bulls in working position is their feed. Only farmer or may be one or two workers employed in cultivation.  Now what happens when he uses a tractor? Tractors and automobile manufacturing is one of the major industries engaging a massive part of population in production. Maintenance and repairing is also a wide industry employing a noticeable part of population. Spare parts industry is also linked with tractors. Another linkage of tractor is with fuel industry; oil refineries and oil companies play an important role in employment. If we put out machines from the world fuel does not mean anything to human being even we cannot burn them without burner.

Now a question rises, if the machines are employing population at a large scale, then why still unemployment exist in developing countries? This has a logical reason the developing countries do not enjoy the backward linkages of machines. Most of the machines are imported from the developed world. Developed countries employ their raw material resources and labor force in manufacturing of machines. They export these machines and earn reserves. They also use these machines in their domestic production and enjoy forward linkages as well.

Developing countries normally export their raw materials and labor force to developed world. They only enjoy the forward linkages still machines are employing a massive percentage of population. Developing countries can get the benefit from machines only when they manufacture the machines. It is necessary for a country to develop its “machine making” capacity. This is the way to reduce the unemployment for long term, instead of applying Philips theory, that encourages a rise in prices to create short-term employment.  

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"Profitable and Taxable" by Shoaib Kiani

Capitalists are maximizing the means of their profit (capital) generation. They use so many tools to invent new means. Such means are called commodities. Commodity is a marketable item produced to satisfy wants. Cloths, Coats, Food Items, Shoes, TV, Fridge, AC and thousands of commodities we can watch around us. Commodity is anything that is 1-"marketable" and is 2-able to satisfy "human wants and needs". With the passage of time history saw so many things became commodity that capitalist used them as a mean of profit generation. For example, naturally available Animals, Fruits, Grass, Wells and minerals became commodity. Even their own brothers and sisters (human being) became a commodity because they were having ability to satisfy wants and needs. And buyers were ready to pay for them (demanding them). Gods and Goddesses became commodities on the basis of spiritual satisfaction. Their names in modern religions. Productivity of a man became a commodity and so on....
Commodity in not only mean of profit generation it also generates many kinds of taxes for the Govt. Most consumed commodities are more profitable and tax generating.

In modern times capitalist are civilized and more scientific. Technology has grown and they use commodities to produce new commodities for example cotton for cloth, iron for machines, leather for shoes and jackets and so on. Another commodity invented is chemical. Chemicals are used in production and preservation of almost all industrial commodities.

The world is discussing that these developed industries are causing the global warming...

The thing that is embracing me is, they first create a problem and then provide its solutions. Every solution is a commodity, a profitable and taxable commodity. I am worried that they have converted the wants into needs.For example they cause global warming then bring air conditioners. In past air conditioner was a luxury but after the development of heating industries, this is a need. On the other hand for the production of want satisfaction (luxuries) they are affecting needs. For example water is not pure and healthy. Air is polluted.

Let's come to commodities again. Water equally provided to humanity from nature. In blind times wells and even rivers were owned by individual. Civilized man changed the rules and laws it became public property(at least inside a state). But civilized capitalist is not much happy. They have started revolutionary movements of privatization of resources. But unfortunately water and oxygen were two resources having immunity internationally. But still they were having features of commodities because of their ability to satisfy needs.

So first of all they polluted the water and packed it in bottles. Now water is a commodity, available in Pakistan for Rs. 45 per liter. Government as usual imposed a 16% sale tax over that. Tax ratio is low because it is not most consumed commodity like cell phone. Lower class cannot find water (even dirty) how would they buy this priced and taxed bottle…..Now the question is; how would they make air a commodity?

After thinking a couple of nights I got the answer. It’s not something that is going to be happened...actually it has happened.

All of us are aware of oxygen cylinders that are used in space, water, and hospitals for breathing. So they are just waiting for the time when they make it sure that oxygen can be produces in cities and towns. They will just leave a chemical in the air. This will be causing instant death. News channels will be showing so many deaths in different cities across the world. Doctors will suggest use of such cylinder to survive. News casters will be wearing cylinders. At that time everyone rural, urban, poor, rich, old, young, men, women, even for pets and animals we will start consuming this commodity. We will walk, speak, sleep, eat and drink wearing cylinder at our backs. There will be oxygen filling shops (just like Mobile top up shops) will be refilling cylinders. Two new industries cylinder and oxygen manufacturers may be ministry of oxygen management also come into being. Best quality and pure oxygen will be available with a brand of a multinational company like mineral water. There would be a digital meter indicating the position of oxygen in cylinder. Refilling Shops will be charging Rs. 100 for a single gram of oxygen. This price will be including 45% sales tax because it will be the most consumed commodity. Most consumed commodities are mostly more tax generating and more profitable.

That's what I am worried about...........................

"Taxing the agricultural Income" by Shoaib Kiani

Agriculture is one of the top production sectors. It contributes a huge part in the domestic production of developing countries. As in Pakistan agriculture has 22% of GDP. But still it is too low. The reason is that Pakistani farmer does not have a reason to increase his production level. He is growing as much as he requires. A large part of the land is uncultivated. There are two reasons behind this, first is the unreformed lands and the second is tax exemption on agricultural income.

My today’s discussion is about the second reason, “Tax on agricultural Income”, problems and their solutions. First of all how a tax does increases the production. It is very simple; whenever you tax an income the earner practices some new activity to increase his income at least up to the level before tax. So if we impose tax on agricultural income farmer would try to increase their income to go to the level before tax. He will either use latest technology or will cultivate the unused area of his land. In every two cases both the income and the output will increase. On the other hand the increase in tax revenue will result a decline in foreign loans and budget deficits.

So many problems are there in imposition of this tax. Lets discuss them one by one.

First problem is a common concept is that if any kind of tax is being imposed on agriculture it will cause “food inflation” that’s why it is tough to convince the public. But this tax means only tax on the net income of farmer. It is just like the taxes we receive from different industries. This tax does not affect the price any factor of production just like Land, Water, Fertilizers and Seeds etc. We can subsidize all of the above factors of production.  So there is no chance of inflation due to the tax on agricultural income.

The second problem is also a common thought that farmer in Pakistan is already facing so many problems he cannot afford any kind of tax burden. I will argument it in two points. First, farmers are generating one fourth of the GDP it means there is some level of production. Second, this tax should be progressive, Small on low income and large on high income. The progressive tax puts the burden according to the bearing capacity of a farmer.

The third problem is the feudalism. Large areas are owned by single land lord he cultivates only the area that his free servants (haree) cultivate only against the food provided by the land lords for their family needs. If we impose tax on the income of the landlord he will cultivate the area that is not being cultivated. So the both income and the production will rise. We will go beyond 22%. He will hire more labor that will reduce the unemployment rate. As already the largest part of the population is directly or indirectly dependent of agriculture. Problem is that these land lords are having a majority in parliament so they do not allow ant tax on their income.

The fourth problem is very genuine and real issue, “counting the agricultural income”. How would we calculate the income a farmer? He cannot hire an accountant to calculate the net income. We cannot find how much he spent for fertilizers (natural and artificial). How much should be the cost of the labor as all the members work in cultivation. How much he used the output for his family needs? Where should the output saved as seed for future written while making accounts? The prices of agricultural products fluctuate and changes in climate; so the income earned by the farmer this year may be decline next year. These are the problems related to income calculation. If we find a standardized method to calculate the income of farmer it will be easier to tax the agricultural income.

The fifth Problem is the tax revenue; we define the tax rates but do not make efforts to increase the tax revenues. Pakistan has a very low tax collection, due to unreliable system of government. A man prefers to spend his income on his own family instead of paying it for the luxuries of rulers. If we show the proper allocation of taxes collected we can obviously generate a large amount of the tax that will reduce our budget deficits.

Tax on agricultural income is being imposed in so many countries and it has shown a very positive impact on the economy’s growth and development. Islam also appreciates the progressive tax on agricultural income, Ushar is the best example. So if we are interested to rise to the edge we must have to find the problem and the solve it. We have so many ways to improve ourselves but we are not facing the problems properly, that’s why we are not going up.

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"Man And Weapons" by Shoaib Kiani

                                                                        

History of man started when Adam and his wife were sent on the Earth. They were not having any thing with them to survive. They searched food and started their journey of life. With the passage of time their family enhanced. Children of Adam were facing so many problems on the earth. Like food and Safe shelter. Less or more food was available but the safe place to live was a big issue. Because earth is containing trillions of living creations in it, wild beasts were a big problem for them. That time man was the food for the animals. There was no concept of Nationalism, Boundaries, Extremism, Poverty, Capitalism, Feudalism, Religions and Sects, Politics, Wealth, Gold, Money. Only thing about which man was worried, it was “how to survive?”

In very initial stage man climbed up the trees or thrown stones over the beasts when he found them around himself.  With the passage of time he used the wooden sticks to defend beasts. The sons of Adam dug up the earth and found Iron. They melt it and covered the edges of these wooden sticks with iron. At that time "man and weapon" started their journey. They further melt Iron in Swords and axes. This was the time when the most superior creation of God became safe to live and grow on the planet.

Those weapons protected the human being. Man enhanced his generations. His later generations made the animals their food by hunting them with the help of those weapons. Now the man became the danger for the animals and beasts. It was the time when the proudly surviving man diverted his concentration to the taste of life. He started enjoying the comfort of nature. He started concentrating on his wishes. Those wishes were initially small as those wishes grown up, the struggle of man to make them true also improved.

Most superior and power full creation of Allah started snatching material from their brothers. When one resisted second killed him with the weapons. So the weapon that was made for protection of life started being used to snatch the wishes.  When man became the target of “man and weapons” what happened to beasts? Thousand of them disappeared due to unlimited killing. Remaining were caught and putted in ZOO’s to entertain the holy man. I think soul of a martyred beast entered in the heart of man at that stage of human evolution. And he started acting like beasts.

Now the only target of "man and weapon" itself. Interesting thing at this stage was the up gradation of weapons. Both “man and weapons” has almost same trends and times of evolution. Battles among the sons of Adam, at starting were only for wealth and desires but with the passage of time the reasons of fight changed. Religions came to the people to define good and bad the fights between good and bad were on the extreme when world saw “ISM’s”  the thoughts like barbarism, nationalism, socialism, feudalism, capitalism, extremism, fundamentalism we have thousands of ISM’s today. At that stage world saw the revolution of weapons in 19^th and 20^th century. In these two centuries “man and weapons” recorded two world wars. Swords and axes were replaced with guns, tanks, and rockets. These weapons killed bullions of people in two centuries.

 In 1922 a new reason of fight was discovered the “country” when the borders and passports were defined. Amazing fact is that this reason for war was much solid than any previous. Two people with same religion and same “ISM” started fight because they were living in different countries. The past century gifted us latest version of weapons “the atom bombs”. A few tons weighted missile kills millions of people within few seconds.

 Stockholm International Peace Research Institute says $1,531bn spent globally on military and weapons in 2009 by 196 countries. While more than half of the world’s population is below the poverty line. Millions of Adam’s Holy sons are dying with hunger yearly. Pakistan is in the list of LDC’s (Less Developed Countries) according to World Bank it is spending more than 3% of its GDP on defense. Trillions of $ and millions of people have been wasted yet on wars against India that has more than 300 million of its population with Pakistani religion and “ISM”. I don’t know what this fight is for? Power? Religion? Resources? Human rights? Any kind of “ISM”? Or the "psychological sickness" left by great white rulers while leaving the continent. I think the last one is the only reason.

Governments and thousands of organizations are working for the protection of wild beasts from “man and weapons”. No one is there to protect man’s own siblings and sons from “man and weapons”. I don’t know how much both “man and weapons” have to develop further? What is the level of their desired power and satisfaction?  Economists, sociologists, scientists everyone is crying that “man and weapons” are destroying the weather, economy, planet and next generations. But the beast living inside the man is not being satisfied.

Imagine what is going to be the extreme of evolution of “man and weapons”. I think there is no end until both of “man and weapon” disappear with the destruction of the planet. We are not so much late it is still possible to solve every problem that humanity is facing across the globe. If we convert “ARMY” into “ADMY” (the man). If we produce “FOOD” instead of “GUN”. If we fight “for the man” not “with the man”. If we move the poverty line down instead of expanding borders of state. If we bane the killing of man same as we made law about the hunting of black deer, white lions and blind dolphins. If we involve our manpower (recruited in military), to fight to enhance “line of life” instead of fighting for expansion of “line of control” and border lines. If we make the state weapons free same as we made it Investment free. If we concentrate on making relations with neighbors like India, Afghanistan, Iran and China instead of going to the other side of globe (USA, UK) for friendship. We should import aircraft for the betterment of PIA instead of importing F-16 for war. There is no barrier in our growth and safety.

I am scared, if “man and weapons” remain growing and remain together, they will destroy the planet and humanity.

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Shoaib Kiani

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"Cars and Economy" by:Shoaib Kiani

“We made it easier for one to own a car” was the statement of farmer president of Pakistan. He was proud about his work for the economy. According to him it was a great job and it is a symbol of development. He was convincing the TV anchor that he upgraded the living standard. I was feeling so good about his work until my teacher taught couple of days before, that it creates traffic problem if everyone in the economy drives his own car. I could not understand “how?” but i found that it is a reality that this up gradation creates not only traffic problems but it slows down the economic activities.

First of all I admit that auto mobile industry is contributing a big part in production of various industrial countries across the globe. Japan is the best example. One can easily understand the importance of Car industry in modern era. It generates Revenues and Foreign exchange reserves. It also enhances production and Exports, provides Jobs to unemployed population. Somehow it can become a stair for a developing country like Pakistan to go up. Being a student of economic sciences I cannot avoid the importance of Car production.

But today I will try to show you the picture from a different angle. Some years before, as I have quoted from President’s interview it was a time of car revolution. Car leasing made it so easy for a middle class household to have a car. It caused traffic jams. You can analyze yourself how much traffic jam increased in past eight years in your city. The government of Pakistan found a solution, making new and widening old roads. If you look at Islamabad city from Google map you will be wonder to see that roads are more than houses and wider then a sectors.

Another Issue that rises with car is that it slows down the daily economic activities. A truck of vegetables or dairy Items must should b in the market otherwise farmer and trader both will bear a loss. Uncountable problems are caused by traffic jams, as everyone knows. Every Tom, Dick and Harry wants to (and has to be) at work place on time to start an activity. In car revolution it is not possible. Sometimes being late for just an hour causes loss for billions of Rupees. You can easily imagine how traffic jam reduces the speed of economy.

We have blame on the citizens that they do not follow traffic ethics, that’s why we are facing traffic jams. But actually it is because of extra cars on the road.  We are already facing Oil and Gas shortfall. It is not in our interest to increase the demand of gasoline.  My objective is to highlight the losses to the economy due to slow transportation.

 A survey report says that “every thousand individuals in Pakistan have nine to eleven cars” it is not a large ratio but still big traffic jams are being reported every day in every corner of Pakistan. Just imagine what will happen if this ratio doubles. How much roads we will construct. Will we reduce traffic jams? I think never.

This problem is not only in Pakistan. It is worldwide problem; even developing world is facing traffic jams. Most of the developed countries like US, UK, Japan etc. have planned to convert private transport into public. It is the best solution for the problem. It reduces the density of traffic. Fewer vehicles come on the road.

Unfortunately we have not yet found any reasonable solution for traffic problems. Cities with large population like Karachi, Lahore and Faisalabad etc. are facing traffic jams each moment. People prefer to travel in own cars instead of travelling through public modes. The reason is expensive, unsafe, unscheduled, uncomfortable public transportation. You can check out the public buses, Trains and Aircraft service in any city of Pakistan.

Now the question is "why will someone leave the car and start traveling in bus?" To answer this question we have to analyze “why people use car?” answer is simple “to travel safely, comfortably and in time”. That’s the point if we provide them a safe, comfortable, well standard, on time and cheaper alternate they will definitely leave the car. And economy will run faster.

Thick and slow traffic is never a symbol of growth. Actual growth means when maximum Goods and Passengers are transported through thin and faster traffic. Faster transport means faster growth.

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English is a barrier in our education........ by Shoaib Kiani

In my age fellows, I felt a craze about learning English. It became a symbol of success. Not only students, every institution, teachers, parents, Government everyone is dying to teach and learn English. You cannot pass any interview if you cant speak English fluently. You will find mistakes more than words in this article still I m writing in English because for my better future I have to learn it. Question is why we all are crazy to learn English? So many reasons you can find in this regard. But I will mention them in new way.

Importance of English was felt in our region first time when East India Company entered in Subcontinent. Initially British came here for trade. Company provided Jobs to poor Indians. Communication with British employers was important so they felt to speak English. After some time Great Britain became more powerful and subcontinent was occupied by East India Company. Now Hindu and Muslim leaders told their followers how important English is. You can’t get jobs in government without learning English. Sir Sayed Ahmed Khan is an example of those leaders (I am not criticizing them). After Second World War, East India Company was unable to stay and rule on India they went back at 1947.They left huge problems for the people of Subcontinent "English" is one of them.In partitioned subcontinent (India and Pakistan). Urdu and Hindi became official languages in Pakistan and India respectively. But the Importance of English remained as it was. Six decades past away but still English is the most favorite thing.

You must be having a question in your mind that Why am I crying?

My mother tongue is “PAHARI” National Language is “URDU” I learned these two languages in my childhood. As I grew up I learned “Arabic” to read the Holy Quran. To pass the exams I learned “English” and still reading and writing every subject of my graduation in English. Can you imagine? A kid in Pakistan before passing Matriculation learns minimum four languages. How tough it is? Some times in graduation classes I do not understand what my teacher is saying.

In UK, USA and other English states a child starts speaking English as mother tongue, reads Religious books in English, All education in his mother tongue he do understand whatever his teacher say. So they are developed. English child do not have to learn Urdu if he is coming to Pakistan because his forefathers introduced English as the most useful language around the world.

You must be thinking that Kiani is mad, fundamentalist, nationalist or something. But believe me a child in Pakistan is facing English as a big barrier in learning something. If a child of class two reads a sentence “Apple contains Iron” he must has to translate it in Urdu then he will learn, “SAIB MAIN LOHA HOTA HAI” what will he learn? Nothing, he will just memorize it and will get A+ grade.

Imagine if Newton was a Pakistani scientist he presents his theories in Urdu then how tough it was for an American to understand it. Or if the Holy Quran was in Chinese then how tough it was for Muhammad (PBUH) to teach his Arabian Companions about Islam.

Various survey reports concluded that after Mandarin (Chinese), Urdu version of Hindustani Language is the second biggest language that is being spoken on the planet. This language is being spoken and understood by 1.5 Billion+ people. But still we are crazy to learn English. 

I conclude my whole writing in one question, “If English is Knowledge and key to success then Why American kids go to school?”

I have two solutions for this problem.

1-     Either we exclude English from our literature and translate everything in our own language

2-      Or make English our mother tongue.

 My dear friends must learn English if you are interested to go abroad but do not make it key to success. it is nothing more than a language. It is not excellence or knowledge.

I am doing Masters from Federal Urdu University Islamabad. Their motto is “Education in National Language”. Really amazing thought, but unfortunately they are teaching every subject in English. Because there is no complete course available in Urdu for any subject.It is not a only a theory of Nationalism but it is about our future.

Please for God sake think about the next generation and switch them to a single language. Otherwise they are going to learn fifth language “Mandarin (Chinese)” to read expiry dates on “TANDOORI NAAN” that  we are going to import from China.

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Shoaib Kiani

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Land reforming in Pakistan but how?

 A largest source of production in the developing countries is agriculture. Agriculture contributes a huge part in employment and GDP of a developing country. Pakistan is one of luckiest countries on the planet that have the four seasons a year. The climate and the land are perfect for agricultural production. Pakistan's agriculture is facing too much crisis due to unequal distribution of land, high prices etc. The biggest problem is the unequal land distribution due to that more than 75% of land is not being cultivated. It is shocking for me that even with this crisis about 45% of employed population in Pakistan, is directly or indirectly involve in agriculture. Agriculture is contributing 23% of GDP. Undoubtedly Pakistan can produce 400% more of its current production.
Due to feudalism Land lords are earning billions and poor farmers cannot even fulfill their house needs. Land   lords have thousands of towns in their ownership. Even a Feudal in the Sindh estimated his land and told that a train stops seven times in his land. In my mind the only loss of this inequality is the wastage of land and the lower production level. I have written above that Pakistan can produce 400% more than its current production if we cultivate all the agricultural land.
How the feudalism is lowering the production? Land lord use only the labor "HAARI" that is available to them free of cost or only against food the other area is left uncultivated. on the other side small farmers have labor but do not have land.

Now the question is "how to reform the land?" various procedures are being followed around the world. One of them is socialism. Under this system government of the state is owner of everything. You can use land or property as much as state allows you. But under this system my problem still exist, "the concept of access or exported production" Because when government intervenes, the farmer is bounded to produce up to the level described by the state. Land lord is not safe because he is producing more then 20% of GDP and is not the owner of his own land.
My teacher told me about the concept of Land ownership in Islam.The reason of my interest in this concept is not only because I am a Muslim but I found it the best solution to enhance nation agricultural production. What Islam teaches? Quran says, “God is the owner of the whole land" in another place it says, "Whoever cultivates, is the owner of the land." The whole system is defined in just two sentences. It allows you the ownership and the authority to describe the level of production. Anyone who is able to cultivate and grow up a crop can use the land wherever he founds. It means a person who is not able to cultivate is not eligible to own the land. On the other hand land lord either will scarify the land or will cultivate it. In both the cases gross production rises GDP goes up. If Pakistan adopt this procedure to reform the land it will be having trade surplus but fiscal surplus.
Unfortunately our ruling class is a group of land lords they cannot make any law that put them out of their land. But believe me this Quranic concept of land protects them as well as small farmer. They have the option to cultivate whole land and own it.
(xs2shebi@gmail.com)