Extreme Inequality

India as a developing nation suffers from the major problem of distribution of income and wealth. It has been seriously observed that the there is inequality in the distribution and wealth in the country by which the rich are getting richer day by day and poor are getting poorer day by day. The richest 10% of India owns 80.7% and the others own very less which is a serious concern. This is the major reason why Indian economy is not growing and we all are facing a lot of problems.

It has ben observed that the many ordinary Indians are not able to access the health care they need. Around 63 milion of them are pushed into the poverty because of healthcare costs every year which is almost two people ever second. Also by a survey conducted it would take 941 years for a minimum wage worker in rural India to earn what the top paid executive at a leadinfg company earns in a year.

Causes for such an inquality in distribution of Income and Wealth are as follows-

• Tax Evasion- Richer strata earn lumpsum money and they simpley erode the taxes, thus government simply put forward the motion of lack of public welfare funds and poorer strt getting poorer day by day.

• New Agricultural Strategy- The benefits of new agriculture imposed by way of green revolution were benefiited and enjoyed by only richer class of farmers who were having lots of acres of land holdingd. At the same time economic conditions of the landless farmers damaged over the years. As a result the distribution in inquality of Income has reduced over the years.

• Inflation- During the period of inflation, few profit earners gain and most of the wage earners lose. As in our country the wages have been always lagged behind the prices of the products, the real income fails and people are suffering from the problem of inequaluty.

• Unemployement- Unemployement along with the problem of underunemployment tend to affect the vonsequent productivity of the labour which further gives a way for the significant inequality, poverty and unemployment. As there is not a planned economic development it is not practically possible to increae the levels of income of the people.

Necessary measures to control the situation of inquality are stated-

• High Taxes on Luxuries
• Steep Succession Taxes and Estate Duty
• Steeply-graded Income Tax
• Ceilings on Agricultural Holdings and Urban Property
• Social Security
• Fixing Minimum Wage
• Equality of Opportunity