My great Economics professor at SIBM, prof. Azhar Khan once said, behavioral economics plays an important role in nations economy! He always said, "Economics and Politics are inter-linked".
He always argued that, "government should not give any subsidy to any service or commodity".
Being in Denmark for almost 8 months now, I've noticed that, a retail store seller and an IT specialist in a reputed bank earns almost the same salary!
So, people who work hard were upset and people who work little were happy.
If this continues, and by general human tendency, people who worked little, work even less and the ones who worked hard decided they wanted a free ride too so they worked little. Thus, at the end of the day no one worked as required and eventually it lead to system failure. So, the one who works harder should be rewarded!
When the reward is great, the effort to succeed is great but when government takes all the reward away, no one will try or want to succeed.
He always argued that, "government should not give any subsidy to any service or commodity".
Being in Denmark for almost 8 months now, I've noticed that, a retail store seller and an IT specialist in a reputed bank earns almost the same salary!
So, people who work hard were upset and people who work little were happy.
If this continues, and by general human tendency, people who worked little, work even less and the ones who worked hard decided they wanted a free ride too so they worked little. Thus, at the end of the day no one worked as required and eventually it lead to system failure. So, the one who works harder should be rewarded!
When the reward is great, the effort to succeed is great but when government takes all the reward away, no one will try or want to succeed.
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