Essay on poverty and inequality in india
Wealth tied up in private occupational pension schemes and life assurance schemes The Global Pyramid of Wealth Source Statista In terms of global income inequality, the poorest two-thirds of the world's people are estimated to receive less than 13 percent of world income, while the richest 1 percent take nearly 15 percent Source: UNDP HDI report for Inequality in the distribution of income and wealth The level of inequality of income and wealth can be measured in several ways: The share of income going to different groups in society, e.
But all wage revisions and increases tend to be inflationary Therefore wage increases should be related to productivity. Does not take Life Time Income: The measurement of income inequality with a Lorenz curve shows income distribution only at a given time.
Poverty essay pdf
The idea of this essay is to highlight the flux in contemporary business environment and co-opt the same along with the need to involve masses in the production process. South Africa spends more than twice as much on education 6. Also, a large project might have some displacement of people along with a clutch of production machinery of the local society; it may also have some adverse impact on small players in the same industry e. If we all entered the world with an equal amount of resources, some would still rise above others but everyone would get the same chance to succeed in life. Consequently, there is abundance of the former goods and scarcity of the latter goods. China and India have been pointed out as examples of countries under substantial trade protection and capital controls, which have experienced economic growth in the last decade. Immobility of Factors: Immobility of factors is another cause of income inequalities. As far as the relative measure R is concerned, however, its value declines from 0. For instance, the income of a cricketer and of a lecturer may be about the same over their lifetimes. Being ill-fed, ill- clothed, ill-housed and ill-educated, their standard of living is extremely low. Tax can play a progressive role, or a regressive one, depending on the policy choices of the government. Related Interests. Destitution was so intense in Bengal, Bihar, eastern Uttar Pradesh, Jharkhand and Orissa, that entire families and villages were "wiped out" of existence. On the other hand, the masses live in abject poverty, in extremely insanitary conditions, without any proper medical care.
Gini coefficients for a selection of countries Data is taken from the World Bank databankmost recent published data is used, mainly for Country Name.
Because of the inequality, making more inequality and poverty arises.
Immobility of Factors: Immobility of factors is another cause of income inequalities. They bribe the legislators both directly and indirectly and influence the internal politics and get laws passed in their interests but to the detriment of the common man.
Some of the countries that have done well in the recent past include China, India, Brazil, and South Korea.
Poverty in india solution
If the entire income of the country were received by just one per cent of population and the 99 per cent of the population receives no income, this would be the case of complete or perfect inequality. This is shown in Fig. Before this rule is followed, minimum wages should be fixed by law in all occupations and trades. These differences are reflected in earnings. Some conclusions In the following points, we summarise the somewhat obvious conclusions which this article yields: 1. However, it is more important how this growth is distributed among the population or in other words if it leads to pro-poor growth. But unless we make an effort to first contain and then reduce the rising levels of extreme inequality, the dream of ending extreme poverty for the million Indians — a quarter of the population — who live below an extremely low poverty line, will remain a pipe dream. Table 2 clearly indicates that even such a 'centrist' view of inequality yields a picture of pronounced increase in inequality in the distribution of assets across households over time: the intermediate Gini coefficient displays a steady increase in value over time in both rural and urban India.
Discontentment and Unrest: Unequal distribution of income and wealth in a society breeds discontentment and unrest among the masses.
Primary among them is the insistence on ensuring easy access to markets including international markets as opposed to self-sufficiency of villages and all things there under viz.
Poverty and inequality essay
In order to control such ill-gotten wealth, to prevent monopolies and restrictive trade practices and concentration of economic power in the hands of a few business houses or groups of firms, governments of capitalist countries appoint commissions and pass legislative measures to this effect. In the remaining analysis, we assume that it is growth — and not decline - in average wealth that is of interest. In such an event the Lorenz curve would coincide with the diagonal of a box in which income shares are plotted against population shares. And how progressive are the spending levels? Reversely, when inequality rises from a given threshold, it has a negative effect on growth. Existence of Non-Competing Groups: The existence of non-competing groups in every society is another cause of inequalities of incomes. While many statistics state that poverty is decreasing, other sources state the opposite.
It lies between zero and one. Money paid to people receiving benefits such as the state pension and tax credits 3.
Causes of poverty in india
This is shown in Fig. Gift Tax: A gift tax is a necessary adjunct to an inheritance tax. The absolute character of the measure A is reflected in the fact that its value has remained unaltered by an equal absolute increase of all incomes in the change from x to z. Also, a large project might have some displacement of people along with a clutch of production machinery of the local society; it may also have some adverse impact on small players in the same industry e. On the other hand, the masses live in abject poverty, in extremely insanitary conditions, without any proper medical care. The growth in average levels of wealth and income in India has been greeted by its elite with a great deal of enthusiasm and fanfare though even the income-growth story is now beginning to unravel. Governments can start to reduce inequality by rejecting market fundamentalism, opposing the special interests of powerful elites, and changing the rules and systems that have led to where we are today. Thus death duties serve a useful social purpose by bringing an egalitarian distribution of wealth. It does not take into consideration personal income taxes, social security deductions, subsidies received by the poor families, etc.
Essay 4. In order to control such ill-gotten wealth, to prevent monopolies and restrictive trade practices and concentration of economic power in the hands of a few business houses or groups of firms, governments of capitalist countries appoint commissions and pass legislative measures to this effect.
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