What political parties are fighting about, is how to achieve a more egalitarian society, where everyone has an equal opportunity of reaching the top. There are too many children without equal opportunities for success. World inequality continues to grow. In the past three decades, 28% of the increase in real incomes in North America and Western Europe was captured by the top 1% of earners. The top 1% of India's population holds nearly three quarters of the nation's wealth.
- The majority view seems broadly to want to tax earners and owners more heavily; to take away from some so others can have more. It’s easy to convince people that this is the quickest, actually the only way.
- Inequality is not in itself unfair. We all know that rare skills possessed should be rewarded better. Building assets for poor people is extremely important.
- The surest and quickest way to ameliorate inequality and diminish poverty is radical economic transformation at all levels of government, the entire bureaucracy and the state-owned companies, so that it would spend every single available rupee of taxpayer money on development and upliftment; that state organs’ efficiency and productivity are increased radically; and that corruption is eradicated.
- The middle class wealth reached its peak in the mid-1980s. But it’s been ravaged by stagnant incomes, unstable property & investment markets and growing consumer debt.
- Many developing nations have targeted poverty alleviation. While China has achieved poverty alleviation on an historic scale, the obstacles - bureaucratic inefficiency and failed policy implementation remain. India has made progress in alleviating poverty, although it lags significantly behind China.
- Inequality hampers growth by leaving human potential unrealised. The middle class provides market for consumer goods and services, which in turn creates jobs. The cycle is interrupted when profits are excessively retained, rather than reinvested into further capacity – such as health and education sectors.
- More than 20% of Indians are poor. India saw the fastest rise in inequality between 1980 and 2016, and 55% of the country’s income share is in the hands of the wealthiest 10%. Across the developing world, blunt policies are not only proving ineffective at reducing poverty, but also widening the wealth gap.
- Most national level policies are either ham-fisted or intentionally ineffective. They tinker at the margins with transfer payments and social programmes, while failing to address structural causes such as gaps in educational achievement and public health.
- Failure to improve basic services is one of the most glaring gaps in inequality policy. Private sector and philanthropic intervention, while helpful, is no substitute for equal access. India spends only 1% of GDP on health services, compared with the world average of 6%.
- The policy ineptitude by the governments in the US and India are in thrall to discredited claims about “trickle-down economics” and have passed sweeping tax reforms that substantially favour corporations.
