{"id":200801,"date":"2022-08-20T17:22:15","date_gmt":"2022-08-20T11:52:15","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=200801"},"modified":"2022-08-20T17:22:15","modified_gmt":"2022-08-20T11:52:15","slug":"how-free-basics-can-help-india-grow-rich","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/how-free-basics-can-help-india-grow-rich\/","title":{"rendered":"How free basics can help India grow rich?"},"content":{"rendered":"\n<p><strong>Source<\/strong>: The post is based on an article <strong>\u201cHow free basics can help India grow rich\u201d<\/strong> published in <strong>The Times of India<\/strong> on <strong>20<sup>th<\/sup> August 2022<\/strong>.<\/p>\n<p><strong>Syllabus: GS 3 Inclusive Growth<\/strong><\/p>\n<p><strong>Relevance: <\/strong>The Universal Basic Income (UBI)<\/p>\n<p><strong>News: <\/strong>Recently, countries like South Korea, Finland, and Canada have made some Universal Basic Income (UBI) experiments, while India is witnessing the debates on the merits of free basic facilities.<strong>\u00a0<\/strong><\/p>\n<h5><strong>Why should India provide free basic facilities?<\/strong><\/h5>\n<p>(1) There is a <strong>growing global consensus<\/strong> about the <strong>redistribution of wealth.<\/strong> As per various leftists, the UBI can be a means to correct growing<strong> income equality<\/strong> in modern society.<\/p>\n<p>(2) As per some <strong>pro-market people<\/strong>, the UBI is helpful to sustain <strong>the level of consumption<\/strong> in the economy. For example, Elon Musk, Mark Zuckerberg, and French\u00a0economist Thomas Piketty have proposed it.<\/p>\n<p>(3) There are some <strong>historical experience<\/strong>s related to the benefits of free basic facilities in western countries.<\/p>\n<p>(a) Germany has provided and bene\ufb01tted from free education and healthcare for years. It implemented the <strong>Bismarckian pension model<\/strong> in 1889 which arose to help the landless workers migrate to cities amid rapid industrialization.<\/p>\n<p>(b) After the Great Depression, America\u2019s social security system was implemented. This resulted in the transfer of cash which provided relief to the people and also kick-started demand in a struggling economy.<\/p>\n<p>(4) Over the years, productivity has risen faster than wages in almost all economies (say the US). In India, the share of wages in total output fell from 30.3% in 1981-82 to 18.9% in 2019-2020.<\/p>\n<h5><strong>What are other reasons to implement UBI in India?<\/strong><\/h5>\n<p>(1) <strong>Limitation of Contribution Based Models<\/strong>: Unlike, the rich countries, most workers in India are working in the unorganized sector. Thus, a contribution-based model will help only salaried people, whose number was only 24% in 2019.<\/p>\n<p>(2) <strong>Evident in the existing schemes:<\/strong> the contribution-based model has been implemented in old age and disability schemes. These schemes exclude a large number of people.<\/p>\n<p>(3) <strong>Make population employable:<\/strong> Free education and health care reduces out-of-pocket expenditure and make the population more employable.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Source: The post is based on an article \u201cHow free basics can help India grow rich\u201d published in The Times of India on 20th August 2022. Syllabus: GS 3 Inclusive Growth Relevance: The Universal Basic Income (UBI) News: Recently, countries like South Korea, Finland, and Canada have made some Universal Basic Income (UBI) experiments, while&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/how-free-basics-can-help-india-grow-rich\/\">Continue reading <span class=\"screen-reader-text\">How free basics can help India grow rich?<\/span><\/a><\/p>\n","protected":false},"author":10343,"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":[216,10500],"class_list":["post-200801","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-indian-express","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704940055},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/200801","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\/10343"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=200801"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/200801\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=200801"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=200801"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=200801"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}