India’s shocking income divide

[SMC]

https://qz.com/1156418/indias-shocking-income-divide-charted/

In the last few decades, the rich in India have been getting richer and the poor getting poorer.

In 2014, for instance, the wealth possessed by the top 0.1% of India’s earning population grew at a faster pace compared to that held by 50% of the remaining population, according to the World Inequality Report 2018, released on Dec. 14. “This rising inequality trend is in contrast to the 30 years that followed the country’s independence in 1947, when income inequality was widely reduced and the incomes of the bottom 50% grew at a faster rate than the national average,” the report said.

However, led by privatisation, liberalisation, and disinvestment of the public sector over the years, the scenario has changed dramatically, said the report based on a study by economists Facundo Alvaredo, Thomas Piketty, Lucas Chancel, Emmanuel Saez, and Gabriel Zucman. In fact, inequality in India may be at its highest level since 1922 when the country introduced the income tax.

(World Inequality Report 2018)
“The structural changes to the economy, along with changes in tax regulation, appear to have had significant impact on income inequality in India since the 1980s,” the report noted. This income divide continued through the 2000s, with the richest 10% of the adult population in the country controlling most of the national income by 2014. The bottom 50%, meanwhile, had control over only 16% of the country’s income.

The rise and the rise of a small pool of India’s uber rich population has worsened this divide. The ultra wealthy alone—comprising 1% of the country’s population—controlled about 23% of India’s total wealth in 2014. That’s almost four times the 6% of the riches they controlled in 1982-83.

(World Inequality Report 2018)
And it’s not India alone. Income inequality has been on the rise across the world, but the situation is particularly startling in regions such as the Middle East and countries like Brazil and India.

The following charts are instructive. The first shows the percentage of national wealth controlled by the top 10% of the population in 2016.

(World Inequality Report 2018)
The second illustrates the pace at which the wealth of this 10% of the population has been rising in proportion to the national income, furthering the wealth divide.

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I think this would also explain why India's poverty is relatively high despite having the highest GDP per capita in the region. The extreme rich are driving that up, while the money is not flowing to the poor as much as it should.

What's shocking is not just the share of the top 1% but the top 10%. 55% of wealth is with the top 10%.

 

[MagicMarker]

Sadly there is considerable truth to this matter.

The Income Of The Average Indian Is Significantly Lower Than The Average Income Of India

In 2013, the median income at $ 616 was around 58 percent lower than the mean income or the per capita income at $1455.



Most Indians are blissfully unaware of this reality.

 

[bête noire]

That's...rather a very quick jump to oligarchy. Bottom half of Indian population only earns 15% of the total income while top 1% takes home 22% of the total income. Honestly, at this point, Indian's should not be boasting about how rich Maharastra or Delhi is because it only means how much poorer rest of the Indian people are. Can anyone provide same data's for BD? I am assuming very high wealth inequality exists here too, where Dhaka and Chittagong takes most of the income.

 

[MagicMarker]

That's...rather a very quick jump to oligarchy. Bottom half of Indian population only earns 15% of the total income while top 1% takes home 22% of the total income. Honestly, at this point, Indian's should not be boasting about how rich Maharastra or Delhi is because it only means how much poorer rest of the Indian people are. Can anyone provide same data's for BD? I am assuming very high wealth inequality exists here too, where Dhaka and Chittagong takes most of the income.

In the same survey, Bangladesh median income was reported to be $567 per person.

Pakistan Median income per person was $ 480.

However all these data is only indicative and is based on self reported income over a period of 2006 to 2012 over 131 countries.

 

[Götterdämmerung]

Sadly there is considerable truth to this matter.

The Income Of The Average Indian Is Significantly Lower Than The Average Income Of India

In 2013, the median income at $ 616 was around 58 percent lower than the mean income or the per capita income at $1455.



Most Indians are blissfully unaware of this reality.

And yet, plenty of Indians are still parroting the neoliberal "trickle down effect" crap in this forum.

 

[MagicMarker]

And yet, plenty of Indians are still parroting the neoliberal "trickle down effect" crap in this forum.

So ?

 

[holysaturn]

This is another way of misleading people by marxists that income inequality in itself a problem and the lack of it represents progress, if that is true people from all around the world will be rushing to Africa(where everybody is equally poor) instead of USA and Europe(where everybody is not equally rich).
In the report it says the percentage of income share of lower 50% in the overall income has reduced but this doesn't mean they have become poorer but rather their income has increased but at a lower rate at which the top 1% have become. The income of every income class has increased in the past two decades in India , the report is more worried about the 1% becoming richer rather than being happy that the lower income classes have increased their absolute income which is essentially based on leftist jealousy than sound reason.
"he(Socialists) would rather that the poor were poorer, provided that the rich were less rich"- Margaret Thatcher.

 

[Jugger]

Good levels of education will cause such inequality to fall.
As people get educated, they find different avenues for investment and getting better jobs.
I only wish for our population to be fully educated.

 

[MagicMarker]

This is another way of misleading people by marxists that income inequality in itself a problem and the lack of it represents progress, if that is true people from all around the world will be rushing to Africa(where everybody is equally poor) instead of USA and Europe(where everybody is not equally rich).
In the report it says the percentage of income share of lower 50% in the overall income has reduced but this doesn't mean they have become poorer but rather their income has increased but at a lower rate at which the top 1% have become. The income of every income class has increased in the past two decades in India , the report is more worried about the 1% becoming richer rather than being happy that the lower income classes have increased their absolute income which is essentially based on leftist jealousy than sound reason.
"he(Socialists) would rather that the poor were poorer, provided that the rich were less rich"- Margaret Thatcher.

Are you stupid ?

There has to be a reasonable limit to disparity. Usually 1:10 is reasonable policy, not 1:1000.

If we had a world where 1% of people were 100 feet tall and the rest of the population was 1 feet tall, guess what would happen to the 99% of the world's population ?

This is not about communism or capitalism, but about sustainable growth and equal opportunity.


Watch this movie, this will make your understand what happens when the disparity becomes too big.

Good levels of education will cause such inequality to fall.
As people get educated, they find different avenues for investment and getting better jobs.
I only wish for our population to be fully educated.

No , it will not.

That is why we need Laws and social order that set limits to unreasonable consumption, Monopoly, Cartels and bullying.

"education" is not a magic bullet.

 

[holysaturn]

Are you stupid ?

There has to be a reasonable limit to disparity. Usually 1:10 is reasonable policy, not 1:1000.

If we had a world where 1% of people were 100 feet tall and the rest of the population was 1 feet tall, guess what would happen to the 99% of the world's population ?

This is not about communism or capitalism, but about sustainable growth and equal opportunity.


Watch this movie, this will make your understand what happens when the disparity becomes too big.

No , it will not.

That is why we need Laws and social order that set limits to unreasonable consumption, Monopoly, Cartels and bullying.

"education" is not a magic bullet.

Don't make yourself look like a fool, where do you get the limit to disparity? from which metric do you get which is reasonable? Are you the authority in determining the right disparity? or you just pulled the figures from your **** . Whiners like you cant have a proper debate and discussion without name calling and abusing.
Idiots like you think that an economy is a fixed pie where one always gains at the expense of the other, the poor guy on the street has no food not because some rich guy is driving a ferrari but he is poor because he has no employment and employment is created by creating wealth and not redistributing it.
You are just frustrated that some people are rich but are not happy that in the process they create employment. Nobody should have a problem with people being rich but the issue is the poor getting the right opportunities , no rich guy is responsible for the non availability of such opportunities , if you think so then you are just plain jealous .

 

[BATMAN]

Top 3 casts of hindus control Indian wealth.

 

[Jugger]

No , it will not.

That is why we need Laws and social order that set limits to unreasonable consumption, Monopoly, Cartels and bullying.

"education" is not a magic bullet.

Care to give some examples for the same.

 

[U-571]

its a common problem in south asia, it was the same in the west until the labour movements started happening and the cost of labour rouse, the south asia needs similar legislation, and minimum wage criteria, meaning a person with a minumum wage can afford a healthy life style.

 

[holysaturn]

Care to give some examples for the same.

People like him don't understand the fact that cartels, corporatism and monopoly exist because of govt regulations so they recommend more of such regulations to solve the very same problem they created. The rich corporations will always manipulate these rules and regulations to their advantage at the cost of small businesses.
The monopoly in Oil production was gifted to the Ambanis by the govt by preventing competition, the govt owned monopoly of Indian Railways, OFB and once monopoly of Air India were created by govt.
He must be a follower of Lenin,Mao and Lenin who used to instructed people how much wealth they are allowed to own and not own, the rest would be confiscated by force. We know how that worked out for their people and economy. Confiscating wealth violates the constitutionally guaranteed right to own ones property,wealth and not confiscated by force.

 

[Götterdämmerung]

So ?

Read OP.