It clearly states that labor is the only factor of production or which the is basic instrument of making goods. Generally, the price of goods is set by the cost of labor, like expenditures, explicitly cost always exists during production but the actual rate of cost is the hard work of labor. The time which would ingest of construction a good that denotes, socially necessary labor time briefly explained by German philosopher (max). Moreover, the entire mode of production is functionalized by labor so it would be supremely important for labor to get higher wages consuming basic needs and to reduce the substantial level of their life. Consider the income of labor in Pakistan that is 15000 rupees per month ($150) which is on the level of high poverty, earning a low wage of labor makes the economy very weak for the entire economy is based on the ingesting of labor, on the other hand, 89 percent of workers, consist of economy 75 percent of consumption is being consumed by workers. 


    In every budget, the workers and households are the backbones of the economy because the 2/3 percent of GDP depends on daily purchasing power. If the laborers do not have an accumulation of capital, then how does he wants to be able to consume or purchase the prevailing goods which are actually produced by the labor. History has witnessed that low wage was the major leading factor of the organism of recessions in 1929 all over the world.

   In final remarks, I would like to request the policymakers to increase the wage rate of labor, it increases the buying power of laborers and it leads to more output and more prosperity, and makes wealthy environments of the behavior of the economy. 


By: Chakar Wahid 

The writer is a professional student at Ruzhn Academy Bugh Meeri