Policies India Needs to Reduce Income Inequality
Most societies must accept some income inequality at certain points in time. There are many reasons why this is the case and there is no single solution to the problem. But, especially in our country, the economic disparity has become much more prominent; where the rich are progressing at a fast pace, while opportunities for the poverty-stricken are still pretty bleak!
Income inequality in India has been soaring in recent years to the point where a large number of Indians are just scraping by. This is not healthy for any country. Sure, we can't really promise each and everyone equal pay, so there will always be inequality to some degree. But how much inequality should be actually acceptable? Can we do anything about it?
In Ramesh Chaurasia latest news, we'll be discussing some policies that can rescue India from this problem!
Increase the Minimum Wage
The nation's working population could use a raise. The current minimum wage has failed to keep pace with the cost of living. Though its intentions were noble, this policy is ineffective, and it is time for an increase in the minimum wage. According to recent statistics, a 30 percent increase in the minimum wage can bring around 5 million individuals to extreme poverty. Higher wages mean more money to spend on things: so it can also act as a GDP booster for India.
Build Assets for Working Families
India needs to come up with policies that help the lower and middle-class own assets and save better for retirement.
Helping struggling families build decent homes, providing broader access to savings plans, and encouraging businesses to provide retirement plans for their employees are a few ideas for strengthening household balance sheets.
Lowering the cost of building assets means that people can invest in the foundation of their family's security- a home! They can have peace of mind knowing that they have a retirement savings plan and even save for their children's college education. It means people can start to get out of debt and build some wealth and it doesn't even have a hefty price tag to spend on the government!
Invest in Education
The fact is that those with the best access to education achieve higher wages and are more likely to be employed. Research shows that the key to reducing economic inequality and increasing upward mobility is investing in education. We need to reform our public education system and make sure all students have access to high-quality early childhood education and quality public schools.
One of the largest drivers of economic inequality is access to high-quality education. If you start early, even those children who grow up in low-income households have the same opportunity as their upper-middle-class and wealthy peers.
End Residential Segregation
Our country of 1.3 billion people is facing a challenge—poverty and increased income inequality. The estimated net worth of all Indian households was $5,510 per capita in 2012 and shows a continuously declining trend since then. At about 21%, India has one of the highest urban poverty rates in the world.
Residential segregation will only widen this gap, by restricting the economic mobility of poverty-stricken people. Policies should be made to promote integration in Indian cities and towns that could increase income mobility for everyone. The key to boosting mobility is to counteract the clustering of poverty and increase access to opportunities. Our growth and progress as a nation depend on the development of the poor, and reducing residential segregation can be the first step toward this noble cause!
In Ramesh Chaurasia's latest news, we have discussed some crucial policies that might help to secure our country from this downward spiral of economic inequality. Ultimately, based on the available data, this is a question of balancing the rights and interests of those who create wealth through their work with the need for a strong safety net for our most vulnerable citizens. There is no one-size-fits-all approach to reducing inequality because much depends on the economic needs of different states. However, there is one point that has universal appeal, and which would have a similar effect on reducing inequality in every state: better education.
A good policy will always promote an effective government and result in a stronger society through equal opportunity. This can be achieved by promoting policies that are equitable and provide higher wages. Education, employment, minimum wage, and labor policies to encourage solidarity with workers, can all contribute to better income distribution while helping to reduce inequality.
__________________________________________________________________________________ Author- Ramesh Chaurasia A superior and highly experienced entrepreneur in the field of business for quite a long time now. Also, a philanthropist, author, and public speaker who believes in working towards the overall well-being and betterment of society as a whole.