Inequality got worse
PremiumThough the rich haven’t gotten richer at the cost of others, and many could thank easy-money policies run globally by central banks, policy attention must turn to those whose lives have worsened in the past two years
A report by Oxfam throws light on the extent to which income inequalities worsened during the pandemic. India’s count of billionaires rose by 40 to 142 in 2021, with 98 of the richest Indians owning as much wealth as the bottom 552 million, by its estimates. This, even as the incomes of 84% of the country’s households declined during the pandemic, the report notes.
These alarming numbers should prompt our policymakers to address what many have described as a K-shaped economic recovery, with a stark divergence in fortunes between the rich and the rest. While the wealthy have gotten wealthier, the national minimum wage has remained at ₹178 per day since 2020, according to the report. Though the rich haven’t gotten richer at the cost of others, and many could thank easy-money policies run globally by central banks, policy attention must turn to those whose lives have worsened in the past two years. Even as India’s monetary rescue is gradually withdrawn, fiscal support for the hard-hit may need to be stepped up. Credit costs for the government and businesses might rise this way, but economic imbalances could have worse consequences, and it’s best to pre-empt these
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