Unlike its humble name, the middle class is often considered the glue that keeps modern liberal democratic economies from falling apart under the strain of ever-rising inequalities. Every generation of a middle-class household hopes that its next-generation would be slightly better off. For instance, people belonging to the middle-class aim to have decent well-paying jobs or small businesses, hope to own a house of their own, seek to have a secure retirement, and want to secure the healthcare and educational needs of their family. It is also characterised by certain values, mindsets, educational and occupational choices. But it is possible to define the middle class as those whose expenditure ranges between 75% to 125% of the median expenditures.įurther, cash is not the only marker of being middle class. For instance, in the above case, the poor live on $2 or less daily, low income on $2.01-$10, middle income on $10.01-$20, upper-middle income on $20.01-$50 and high income on more than $50. Typically economic researchers tend to use income or expenditure (as a proxy for income) to spot the middle class. Sooner rather than later they will see a sharp worsening in their economic, physical and social wellbeing.Īlso in Explained | India is no country for working women. What’s worse, since India’s economy was already decelerating before the pandemic, people do not have the savings to fight for long. Such a sharp contraction in GDP growth essentially means that millions of people will not only lose part or all of their current incomes but also the means to earn their income. But the massive and unabated surge in Covid cases all across the country, which has exposed the government’s lack of preparation over the past year as grossly inadequate, points to the possibility of a scenario where India may not even be able to make up for the economic (GDP) contraction it suffered in the last financial year (2020-21). Starting April, it was expected that India’s economy will register a fast economic rebound and quickly make up for the losses incurred in 2020. But, unlike other countries such as China, which controlled the virus much sooner, or the US and the UK, which despite being hit hard by Covid had the financial resources to protect the livelihoods of their people, India has suffered grievously. Newsletter | Click to get the day’s best explainers in your inbox
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |