{"id":163161,"date":"2022-01-19T19:54:28","date_gmt":"2022-01-19T14:24:28","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=163161"},"modified":"2022-01-19T19:55:25","modified_gmt":"2022-01-19T14:25:25","slug":"grow-the-pie-rising-inequality-per-se-isnt-a-problem-if-economic-growth-raises-income-over-all","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/grow-the-pie-rising-inequality-per-se-isnt-a-problem-if-economic-growth-raises-income-over-all\/","title":{"rendered":"Grow the pie-Rising Inequality per se isn\u2019t a problem if economic growth raises income over all"},"content":{"rendered":"\n

News<\/span><\/b>\u00a0<\/span><\/p>\n

Oxfam International and its India unit have recently brought out reports on inequality.<\/span>\u00a0<\/span>\u00a0<\/span><\/p>\n

However, the are some apprehensions regarding this report.<\/span>\u00a0<\/span><\/p>\n

What are the issues with the Oxfam report?<\/span><\/b>\u00a0<\/span><\/h5>\n

Problem with measure of inequality<\/span><\/b>-Oxfam has used wealth, not income, as the\u00a0parameter.<\/span>\u00a0<\/span><\/p>\n

The problem with this approach is that it is heavily dependent on the market value of financial\u00a0assets,\u00a0which fluctuate almost every minute.\u00a0<\/span>\u00a0<\/span><\/p>\n

Issues linked to\u00a0some of its suggestion<\/span><\/b>-Although its suggestion for need of\u00a0<\/span>good\u00a0quality statistics<\/span>\u00a0is appropriate,\u00a0it’s\u00a0another suggestion on\u00a0<\/span>wealth tax is problematic.<\/span>\u00a0<\/span><\/p>\n

Report suggests a temporary 1% surcharge on the richest 10%.<\/span>\u00a0<\/span><\/p>\n

What has been India\u2019s experience with wealth tax?<\/span><\/b>\u00a0<\/span><\/h5>\n

India used to levy a wealth tax but it was\u00a0<\/span>abolished in the 2015<\/span><\/b>\u00a0Union Budget.\u00a0It had\u00a0no or very\u00a0little impact, for example,\u00a0in 2015,\u00a0GoI\u00a0could raise only Rs 1,079 crore as wealth tax.\u00a0<\/span>\u00a0<\/span><\/p>\n

That is, just Rs 1.4 for every Rs 1,000 that accrued through direct taxes. Also, there are\u00a0<\/span>practical difficulties in taxing wealth.<\/span><\/b>\u00a0<\/span><\/p>\n

What is a better alternative to reduce inequality?<\/span><\/b>\u00a0<\/span><\/h5>\n

India should focus on\u00a0<\/span>economic growth and economic mobility, instead of messy taxation laws.<\/span><\/b>\u00a0<\/span><\/p>\n

This confirms well with the saying that a rising tide lifts all boat up. India should focus on increasing economic growth to reduce inequality.\u00a0For example,\u00a0Post-1991, the rise in India\u2019s economic growth lifted millions out of poverty even as inequality widened.\u00a0<\/span>\u00a0<\/span><\/p>\n

Source<\/span><\/b>–<\/span>This post is based on the article \u201c<\/span>Grow the pie-Rising Inequality per se isn\u2019t a problem if economic growth raises income over all<\/span><\/b>\u201d\u00a0published in\u00a0<\/span>Times of India<\/span><\/b>\u00a0on\u00a019th\u00a0Jan 2022.\u00a0<\/span>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

News\u00a0 Oxfam International and its India unit have recently brought out reports on inequality.\u00a0\u00a0 However, the are some apprehensions regarding this report.\u00a0 What are the issues with the Oxfam report?\u00a0 Problem with measure of inequality-Oxfam has used wealth, not income, as the\u00a0parameter.\u00a0 The problem with this approach is that it is heavily dependent on the… Continue reading Grow the pie-Rising Inequality per se isn\u2019t a problem if economic growth raises income over all<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,10496],"class_list":["post-163161","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-times-of-india","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704786910},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/163161","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=163161"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/163161\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=163161"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=163161"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=163161"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}