The Rich and the Rest of the Country
A recent article in the New York Times talked about the stark disparity between the rich and the rest of India and the efforts of the wealthy to insulate themselves from the unpleasant realities of their motherland. As I read the thoughtful piece, it reminded me of the parallel between what’s going on in India today and what we are witnessing right here in the U.S. – a rapidly widening gap between the have and have-nots and a division into distinct “classes”, although in this case driven by economics and not race or culture.
However, my post is not about the class system but about something that is the inevitable byproduct of segregation. As society moves further apart, so do the interests of the various groups that are a part of it, leading eventually to a lack of cohesion and unity.
More specifically, the Republican agenda of slashing the federal budget to a level that would hamper the growth and stability of the U.S. as a nation while refusing to tax the rich or corporations is not only alarming but a recipe for disaster. For sure, cutting the budget deficit is important, but the extreme measures advocated by the GOP will destroy the infrastructure and future of our country while securing the future of a select few who can afford to insulate themselves from reality. Unfortunately, I believe that this trend is irreversible in the short term and will bring the U.S. to the brink of catastrophe before sensible minds prevail and rein in the fundamentalism of the conservatives.
Is India likely to go the same route? Quite possibly. While there is plenty of new investment flooding into India and the market is expanding, investment in infrastructure, education, clean energy and other long-term projects requires a different mindset from that of capitalism. It requires a long-term view of history and a sense of dedication to the welfare of all people, not just a powerful minority.
Again, as in America, the more divided people get on the basis of money, the less they share this essential “communal” value. There is no doubt that the Ambanis, Tatas and other financial empires will thrive in the future and that their expansion will fuel job growth and economic prosperity for others, but such prosperity is meaningless if the very foundation on which it stands is allowed to crumble.
India’s Challenges…
Of course, pointing out a problem without suggesting a solution is meaningless so here is a possible way to buck this trend, at least for India. An old and mature culture should be able to modify its system to reflect the needs of both a rapidly growing capitalist economy and the larger welfare of the country, which encompasses all its citizens, including the disenfranchised and poor. The former needs to be addressed through financial reforms and curbing of government corruption – two things which are now thankfully being tackled by the Supreme Court.
As for the latter, developing a large and populous country like India and preparing it for a successful future requires tremendous resources – the type of resources that charitable contributions or economic initiatives of the private sector alone can’t provide. Roads, railways, schools, public services, scientific research and everything else that goes into nation-building all need financing from government coffers, which can only be filled through taxation. We may not like that idea, but that’s how it goes.
Additionally (in another parallel to the U.S.) , since a disproportionately large amount of the wealth in India is concentrated in very few hands, those hands need to be willing to sacrifice a bit more than the rest of the people in order to help their country.
The alternative is a future wasteland of poverty, illiteracy, inequity and misery, broken occasionally by the gated estate of a wealthy businessman but little else – which is a vision I find hard to believe would be palatable to even the staunchest capitalists in our society.
Sanjay Sanghoee, author of ‘Merger’, a corporate thriller available on Amazon, blogs on political, financial and social topics which are carried weekly by several radio stations. He has written spec episodes for TV shows like ‘Law & Order: SVU’ and a screenplay for ‘Merger’. He has an MBA from Columbia Business School and worked on Wall Street for 15 years in investment banking and hedge funds. www.sanghoee.com
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7 Comments
Hi Tapas Mukherjee, thanks for your comment. Your point is very insightful and expands my theory further. Extremism and crime always rise on the back of discontent and poverty. I think that it’s very short-sighted for the more privileged to ignore this since eventually, one way or another, the extremism will impact them and their sanitized lifestyle as well. The fact is that we all like living in clean neighborhoods and want the “dirty” part of society to just go away, but that’s not how it works. The rich need to face up to reality and realize that they are as much a part of the whole as they are separate.
Talking Trish1, I think the point you made about the dysfunctional debate we are currently witnessing about balancing the budget is absolutely correct. I, like you, find it mystifying that on one hand the politicians want to reduce the deficit but refuse to raise taxes on corporations and the rich. Look at the fight going on right now about President Obama’s proposal to reduce tax subsidies for the major oil companies. During Kennedy’s administration, the aluminum companies did a similar thing where they passed on all cost increases to their customers without regard for the state of the economy – basically maximizing profits even as others struggled. That is not good business but opportunism.
Cypherinfo, you should include corporations in your statement about bad behavior since we’ve seen more than our fair share of “bad behavior” from major companies in the past two decades!
Sanjay, the significance is well driven home. if the power that be fails to strike a balance between the extremes, it indeed becomes a recipe for disaster. In India, look at how lack of a sense of belonging spurred off by poverty and lack of opportunities expressed itself in the outbreak of political extremism like the Naxalite or Maoist movement. People’s frustration level is bound to aggravate with the increasing wealth of the haves. The writing on the wall is loud and clear.
Well said, Sanjay. There is almost an admiration for people who make it big and then flaunt that wealth – the media thrive on the big homes, the yachts, the racing cars and sports teams!
Thank you for your comments. You are absolutely right that the wealthy everywhere are united in their indifference towards the larger good. However, there are big philanthropists like Bill Gates and Ted Turner who also do a lot of good with the wealth that they amass, at a level that only someone wealthy can do. I think the big issue is a societal one where instead of people speaking up against the excesses of the rich, they instead aspire to be able to do the same thing one day themselves and therefore extol that behavior! We create our own bed to some extent.
Greetings:
It is sad that America only cares for its wealthy. When Capitol Hill wants to balance the budget, they will cut all services to the middle class and will not raise taxes for the rich. It is no longer a country of equal opportunity but one that festers in open and closet bigotry. Bail out banks but do not modify home loans. Our elected officials are extremist and a little goofy. Will they ever serve the individuals who voted them in or continue to placate their friends?
The India “upper class” is like the Western one, all in your first clause: “…efforts of the wealthy to insulate themselves from the unpleasant realities…”; I mean all of the “rich” are united in the world in terms of behavior behind. Sad world! 🙁