For Richer Or Poorer : The Problem With India Is Ours Too
The most talked about topic for the past weeks has been the Indian current account woes and their worsening deficit etc which led to the rupee tumbling to historic lows.
The irony is, India has added more ultra high net worth individuals in the past 12 months than any other BRIC nation.
“To be categorized as ultra high net worth (UHNW) individuals, the world’s millionaires have to own net assets (including company shares, real estate, art, planes, yachts and other assets) worth at least $30 million. ”
This is no surprise as we move to another much talked about issue in the US.
“Recent survey shows inequality in the US is at its new peak. The richest 1 percent of the population received almost a fifth of the national households’ income in 2012, thus breaking the previous record set in 1928.”
To put to numbers as taken from Robert Reich’s latest documentary, Inequality for All.
“In 1978, according to Reich, a “typical male worker” made $48,302, while the typical top 1 percenter earned $393,682, more than eight times as much. In 2010, even as overall gross domestic product and productivity increased, the average male worker’s wage fell to $33,751. Meanwhile, the average top 1 percent earner was making more than $1.1 million — 32 times the average earner. ”
The Atlantic published a separate article that suggests that last year was not the record, but the 4th highest in history.
No consolation if we see what the other 3 record breaking years were – pre Great Depression 1928 and pre Sub Prime Crisis, 2006 and 2007.
Taken from an old post of mine last year, Plutonomy, Plutocracy, Plutarchy ? Pluto is Not A Planet Anymore !.
Economic growth that is powered and consumed by the wealthiest upper class of society. Plutonomy refers to a society where the majority of the wealth is controlled by an ever-shrinking minority; as such, the economic growth of that society becomes dependent on the fortunes of that same wealthy minority.
I suppose populist politics will make a difference some time and governments continue to cave in to the pressures of their electorate to do something about it.
Until then, we will see NY condos with separate entrances for rich and poor.