Need to worry over economic inequality in the country; One third of the country's wealth in the hands of 1% of the people

 

Concerns have been expressed over economic inequality for many years. In the month of December came the 'World Inquivalency Report' by a team of French economists, Picetti and Chansal, which revealed that the economic inequality in India is several times higher than that of other countries. According to his report, in the 1980s, india's top 1% used to have 6% of the country's total income in their hands. Today it has increased to 22%.

If instead of income, we talk about total wealth, then the situation is even worse. The top 1% have one-third of the country's total wealth in their hands. There are other such signs. A survey conducted in two lakh households in 2020-21 found that incomes in the bottom 50% of households, rising since 1995, fell by more than 50% in 2020-21, compared to 2015-16.

This figure is also worth commenting on, because in this period itself the income of the most able 20% grew by 39%. This means that the maximum benefit of economic growth in GDP reached the rich. At the same time, the share of the lower 50 per cent in the country's income decreased.

If it were that 50 per cent of the living standards in the lower strata would have been fine, then perhaps there would have been nothing to worry about. The average annual income of the 50% lower strata is only around Rs. 50,000. (Against this, the average income of the top 1% is Rs. 42 lakh.) Can a person in 50,000 live a life of dignity and self-respect?

Economists have different ideologies. Among them are many who always advised that economic policy should focus on the growth rate of GDP. In his opinion, doing so will automatically address all other economic issues, especially the poverty rate. He also believes that inequality need not be taken too much care because economic inequality promotes economic competitiveness, which is a good thing for the GDP.

Beyond ideology, there is still a flaw in this argument. If one per cent has one-third of the country's wealth concentrated, it could hurt the growth rate of GDP. For the growth in GDP, it is necessary to increase the demand for goods, materials and services in the country. How many cars, clothes, other similar can they buy who are rich? Those who have the need to spend, the consumption trend, their income, only then can the GDP increase.

If we aspire to become vishwagurus, then to achieve this also, we have to pay attention to the common man. Only increasing the number of millionaires in the country will not work. Redistribution of wealth and income is also necessary to become a Vishwaguru. It is the responsibility of the government to create the conditions for everyone to move forward. In this, good education and health facilities are the best. The Government needs to increase the revenue to make them available.

If inequality increases too much, then the tension in the society increases. Crime rates are on the rise. At the same time, in the society, the belongingness of the people decreases, there is separation-loneliness. The moral question of economic inequality is perhaps the most important. George Orwell said, 'Idar we all live in a decent world, or nobdi duz', that is, either we all live in a civilized society, or none at all.

The basis of Orwell's creation of society was justice, equality and unity. This spirit and goal is also in the preamble of our Constitution. It is a question for us whether we are even trying to create such a society?