This has actually put things into my perspective. Anti-rich sentiments will not create assets but only lead to an unreturnable doom. Really great episode, Shekhar. You're my favorite analyst 😎👍👍
Brilliant analysis sir. The Venezuela example and also lessons from Zimbabwe should be taught everywhere in the world and especially in India. And we Indians should not forget the classic case of West Bengal.
1. Did I hear it correctly 00.54 "the richest 1% saw their wealth go up by 1% whereas bottom 50% saw their wealth increase by only 3%. 2. As a middle class person I can sense that the vast majority of our people do not grudge the rich their wealth. What angers them is the feeling that the rich are gaming the system to their benefit and to the detriment of the rest.
Report 100% Correct and its present status of our Country Sir....and You should focus on the issues of Majority of Indians going through daily from long long years sir... Anyway I respect you for this platform..... God Bless You... With every reality of India Our Country Sir...
None of our industrialists has real philanthropic instincts. None has worked sincerely to better the lot of the poor. None has created any enduring institutions such as the Carnegie Trust, the Ford Foundation or the Bill & Melinda Gates Foundation. All that our industrialists have ever done is create charitable trusts to save on their income tax. Andrew Carnegie once said, "At the end, the acquisition of wealth is ignoble in the extreme. I assume that you save and long for wealth only as a means of enabling you the better to do some good in your day and generation."
Man i am really impressed...........wonderful analysis by Shekhar Gupta.......i have to say sometimes this guy really surprises us......Calling out organisations like Oxfam for what they are........
This was the most boring episode of CTC, with little to hold my attention until the example of Venezuela came up. After that, it turned out to be one of the most interesting episodes of CTC till date. It's always a good idea to give Shekhar Gupta the benefit of doubt. He may produce videos with terrible sound quality (those outdoor video experiments in Mumbai), but never with poor content. Once again, thank you, Shekhar.
wow.....just wow ...An eye opening monologue ......Thank you Shekhar Sir for this great insight. however i have a simple question .....where that 700 crore came from (Ambani daughter wedding) ? was that his personal wealth or he liquidated some of his assets??
Excellent episode.. It is high time India embraced capitalism.. Please do talk about smaller governments with lesser bloated loss making psu.. And also about freebies which are really about instant gratification
The way oxfam measures assets is the correct one because we have the convention of law of inheritence. All the assets are transferred to the family only. Asset is wealth which needs to be distributed among the people of state no ne can be the sole owner. Keep the profit but not assets. Then only the oxfam reports can be demonished the way you are doing sir
This whole idea of Polarising the general public with eyeball grabbing headlines is like poison to democracy. We didn't get to where we are today because of dictatorships. Thank you for putting this out in the open
The Rich have became richer in India by 38%, however the amount of tax paid by rich has decreased and the tax paid by middle class has increased.. How is this happening??
Bcoz rich know the rules of the game, u don't become rich by paying taxes. Start a business, everything u spend can be deducted from your earning , which means less tax, basic economic 101
U r absolutely right. Listening Ur video, I recollect what Kejriwal did when ACB was with him fr few days. He filed FIR against Ambani . If u give him Police, he will put many industrialist in jail.
It's theft. Take from the working... Give to the lazy. What the hell. If you can't survive in the market you don't deserve free things. Learn marketable skills.
Shikhar, you are missing one point. You mindset is that rich, entrepreneur and capitalists are a different breed and only they are capable of driving innovation, so they should own greater portion of the profit and accumulate wealth. And for this reason they can underpay their employees. Reality is education system in also unequal and impartial, so the rich can get better education and can learn business skills from their parents. While the poor get education from mediocre schools and colleges and are not taught about the economics of money or any business acumen. Even if they are taught, they can't risk or experiment their ideas as their family income is low. They want to secure a job first to stabilize their income. Whereas the rich kids if taught correctly, can acquire good business skills and experiment with the money. If you can implement universal basic income and secure a fixed amount of income enough for basic facilities like food and shelter, give equal and quality education for all, even commoners can make use of the time and money to start their business. So Oxfam is right here. Capitalists think, they can do all by themselves, only they can move things forward, so they should underpay their employees and own a larger chunk of profit. That is not True.
Hello Shekhar sir, This is a question for the weekend edition: Many political parties make EVM a scapegoat after loosing elections inspite of it having stood us in good stead for almost 2 decades now. Earlier it was blaming the messenger but now a bigger attempt can be seen even by civil society activists to change the narrative regarding it's use. This is inspite of them not being hackable as demonstrated by ECI to public as well as SC and the subsequent reforms like VVPAT. What are your views regarding the controversy of using EVM and what might be the motives of the civil society activists?
it is said that if it was able to restart everyone at zero, the same rich will become rich, the poor will still be poor, there is no such thing as equal , it is the wealthy that reinvests and create jobs, and continue to reinvests to create more jobs.
How come the same type of rant is not directed by Shekhar Gupta against Forbes which prepares its annual Billionaire list in the same way ? Forbes celebrates it while Oxfam tries to invoke guilt and disgust !
when you agree in the first 3 min then the basis of this argument is futile. Leave aside data, inequality is growing and this video is not helping solve it.
We really should compare consumption. How mucg do the rich consume and how much the poor consume. We will see the difference is even less. When rich die, they will leave so much wealth behind them.
So the report is not flawed..the way people have arrived at solution, to solve the problem identified in the report, is completely flawed. To bridge inequality, you don’t go ahead and start hating high net worth individuals, harass them, tax them exorbitantly higher, etc but to bridge the gap the governments have to start giving more opportunities to low net worth individuals so that they can start their own business, be more entrepreneurial, allow them to fail by not penalizing them financially if they fail, etc. The headline definitely captured the attention but the last lines from Shekhar were truly relevant.
It is totally flawed. Whether Oxfom know that even a Janta flat in Delhi is worth 40-50 lakh rupees. That mean most Delhi landlords are crorepati. And most of these call themselves poor ,even have BPL card.
I like Mr. Gupta, but am saddended by how little he understands wealth related calculations. In his example, if a middle class family buys a home valued at 10 lacs, and they borrow 8 lacs against it, their net wealth is still positive at 10-8=2 lacs. After 10 years, assuming that the house is now worth 15 lacs and 3 lacs of the 8 lacs loan is paid, then the net wealth of the family is now 15-5=10 lacs, a 5 times increase in wealth. I hope he realizes the nuisance related to this math, relooks at the study, and provides an update to this very serious issue. I am extremely interested in understanding levels of inequality in India, but with hard math and facts. Analysts with limited understanding of mathematics make up for very stupid conclusions
Whilst making valid points in terms of flaws in the study. We are being blind if we think that the access to capital does not play an out sized role in the access to services and opportunities. Not saying tax everyone to hell but we need to think about redistribution mechanisms beyond just high taxes.
This video has very little to do with any flaw in the oxfam report and the main concern it addresses is the misunderstanding of the term wealth amongst common people.
Nobody wants to destroy the rich wealth but we want the government to take fair tax from them and spend the money on education and healthcare for the poor also by fairly taxing the corporate the government can reduce the tax on essential commodities and food items which will again help the masses..
Their calculations n data may hav sm issues but also look at ILO report about india how wage rates have not increased as compare to gdp..plus it also highlights low spending on health n edu ..two biggest reason for income inequality
Tax the rich and they will leave the country in droves or find loopholes to avoid taxes. You can't tax the poor.. Only the middle class will bear the burden. The ideal situation should be to lower taxes allow Entrepreneurship to flourish to generate jobs. Increase tax base by urbanisation and reducing the percentage of population dependant on farming by 90%.
This must be one of the most inane takes on this report, world wide..the likes of which you can probably find in some extreme far-right libertarian fringes in the US..and that only shows how guarded and protective the rich in India are about their self-interests. Even if that puts the entire country at a disadvantage, they are like "so be it"..maybe the thousands of years of the immoral social structure we had, by the name of caste, and the graded inequality it maintained, has habituated these ppl to think such gross inequalities are only natural. He talks abt Oxfam proposing raising taxes on Indian billionaires by 0.5% which will increase our health budget by 50%, only to say that this is nothing but "going back the Venezuela way"..Only the most insane right wingers in the West will bring up Venezuela when somebody talks about raising taxes..That too for a raise as meager as 0.5% if Mr.Gupta is so flustered, you judge what is he.. He cheaply attributes motives to Oxfam that they want the rich to feel guilty so they can get more donation, but does he have the decency to declare his own income and wealth so we can judge whether he gets to speak for the masses of the country, or if he is part of that 1% or whatever that will be directly affected by a slightest shake to the status quo.. People like these, and their fervent guarding of the status quo in the garb of journalism, research, think tanks etc. is one of the biggest problems we have in this country, as big as the usually discussed problems arising out of religion, caste etc..you can see the same kind of thinking in another one of discussions I have seen with Piketty, where our "economic adviser" Bibek debroy will go crazy at the mere mention of having an inheritance tax..Only when these low-lifes are driven out from the corridors of power, real changes will happen in this country.
Dear Sir, While being an admirer of your analysis, this one specifically was not just a seriously flawed analysis but also based upon distorted concept of wealth. a) Firstly, the distortion in concept."Surplus Assets" is perhaps the only measure of wealth -- universally accepted by economists. And if such assets happen to be "productive" --- such as the companies, owned (through shares),by the Indian Billionaires are --- then that is the best form of wealth because it produces steady stream of cash flows, which due to disproportionately less taxation, ( disproportionate to what is left behind in the plate ) -- leaves disproportionately greater "profit/surplus/ wealth " & further enhances the asset valuation -- making it a collateral which is the most acceptable to any lender. This essence , is derived from the basic concept of market capitalization. Your concept is in total contradiction to this basic essence of Capitalism. b) Secondly, the flaw in the analysis. Comparing the Oxfam recommendation of a 0.5 % tax on wealth with 90 % tax on income -- is plain misrepresentation and an over magnification of the proposed solution. The example of Venezuela is both factually and analytically incorrect. Tax Rates in Venezuela are about 34 % for IT (direct taxes) and about 12 to 14 % on goods & services ( Indirect taxes) -- both of which are lower than India. Conceptually, too it is incorrect to state that higher taxes rate leads to Inflation -- its just the opposite. Higher taxes, leaves less money in the hands of consumers -- leading to less demand and therefore lower inflation. Venezuelan economy crumbled due to over dependence on oil exports (96% of its revenue)--and its price collapse. Most other businesses/ industries were taken over by the govt and mismanaged. To meet the imports as well as the interest costs of its borrowed money --- the govt resorted to more & more printing of currency notes --- leading to huge money supply to chase the fewer & fewer of the available goods --- resulting in the hyper inflation. c) Therefore, just a little more taxes on the wealth of the stinkingly rich --- would pose no risk at all to either the vast of the middle class -- which is the aspirational population -- which still has enough gap to aspire to grow. d) Therefore the wealth tax on the super rich is well justified to get critical advantages to large sections of the deprived people. e) In conclusion, this specific piece of writing does not cut the clutter -- rather, adds the clutter.
Shekhar, you have failed to factor in the "middle class squeeze" that India (of course it is a global phenomenon) is facing. Middle class squeeze is a situation where the salaries of the middle class do not keep up with the rise in costs for basic necessities like house, food, car/bike (middle class requirement in many cities), education etc. Also the inflation and other taxation means that the prices of these goods goes higher.... resulting in lesser savings. As a result, rupee for rupee, my middle class grandfather had a bigger house, more gold for his wife and better food security and medical treatment. He didn't have "brands" but he was able to have a few more helpers around the house as well. A classic example is the decline of the airline industry services. In the past, there used to be larger seats, more leg room, more food and good services. If things had improved as people tend to believe, it would've been better than the services that we are getting now (less leg room, less food, less service on a full service airline). The airline experience has gone down, not up. As a result, the middle class is more in debt these days than the middle class of my father's time. And it not getting better, it is getting worse, specially for salaried people, who make up the bulk of the middle class. In the light of this, the middle class is getting indebted and poor, with the assets barely managing to break even (sometimes people are even selling their houses for a loss). Also the rich are definitely getting richer, and this is putting a very bad taste in the mouth of many. In case of India, demonetization (only affected the poor) and GST (affected the small businessman and trader) have been double whammies and it will squeeze people further, though they might not know why this is the case.
Very stupid argument. More people have come into the the middle class and can afford the things that only your grandfather could afford. The services and infrastructure are not growing as fast that is why the airline seat argument not as how you make it.
@@Udayvictor More people are into a lifestyle, but unable to acquire these quickly. They are on 20-30 year loans or are falling back on parents earnings to make ends meet. Services and infrastructure growth is not an issue, it is the quality of services going down over time.
For once Mr. Shekhar Gupta seems to have missed the point and his arguments are confusing. Rising inequality is a reality in India, which ever way you look at it. Inequality is mainly due to lack of opportunity and in turn, the latter leads to the former. The solution is not to tax the rich but to provide greater equality of opportunity, through more affordable and better education, health services and housing for the masses. The government has the primary responsibility for this and it must motivate the rich, through appropriate tax reliefs and regulations, to ensure their effective and successful partnership in the creation of social infrastructure. The government alone doesn’t have the requisite resources to adequately create the social infrastructure required to create the social infrastructure required.
Question : isn't there a need to recognise and mainstream a right-of-centre or right ideology in the public discourse of our country which has always had a history of left-of-centre or left rule and thinking, atleast after independence? Don't you think that it's the alienation and innate bias against anything that is close to right, that is creating the surge of extreme right wing and every other evil that comes with it?
Anything which pinpoints problems in Indian economic model is flawed...hypocrisy at its best...bas image bachanay main lag jao instead of working on real problems on d ground. .
Yes, their is inequality as concluded by shekhar gupta and thank you to accepted it. Whole video is anti oxfam( propaganda) with insufficient solution to problems. Some what disappointed with no touch with ground reality.
That's true very true. Oxfam wants to create an awe by emphasizing these figures. However things like quality education,stability,peace and investment in research and development are more important determinants of wealth creation in 21st century than lower taxes. . We should not also have american style of capitalism(privatized) where after spending 20% of GDP on health a quarter of their population remains out of health coverage and a large chunk of population does not have access to education which worsens inequality.Please sir let us know your thoughts on Education and Health(socialized or privatized). Further Venezuela's crisis shows the importance of self-sufficiency in food grain production and the need to increase investment in agriculture. I think a country can survive all kind of economic crisis if it has self-sufficiency in food grain.
% of people Earth and environment pollution radiation? Report ISRO vsss since 2000 Inform Pm president supreme Court defense minister minister Start whether radiation pollusion report center small way
Either capitalism or communism in its totality is detrimental to well being and progress humanity. America had to adopt communistic principles of state enterprise during great depression. And India didn't abolish private enterprise. Either Nehru or Indira tread a middle path. What they nurtured and groomed was Indian nation. They saw great role of the State in building infrastructure. They did it. So national interest and preservation of sovereignty of India should be the priority for any leader of India, which is not the case with any leader after Indira ji. And is destruction of manufacture and farming not destruction of wealth and wealth creators? 80% of edible oil is getting imported for the last two decades. Food grains production increased manifold thanks to green revolution, but farmers are committing suicides. Manufacturing growth turned negative and continuing down trend for the last one decade. 20 lakh small and medium industries are shut down during the last two decades. Down with the issues of capitalism or communism which are thrust upon us by aliens. World is laughing at India for turning into a banana republic. Let us feel shame. Janardhan Prasad.
Really stupid argument by Mr. Guptha. Maybe next time start providing an definition of Wealth. And on venuzella, why is he not talking about sanction on them and how it got affected. Really complete waste of time.
sir, why u always support modi directly or indirectly. ur journalist behave like impartial .u may be on mod'is pay list.remember people belive ur words.so be justified to your profession.
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Happy to hear a journalist warn about socialist excesses. I don’t think I have heard Dr. Pranay Roy ever speaking about this topic.
You can't become rich if you hate rich people.
This has actually put things into my perspective. Anti-rich sentiments will not create assets but only lead to an unreturnable doom. Really great episode, Shekhar. You're my favorite analyst 😎👍👍
Brilliant analysis sir. The Venezuela example and also lessons from Zimbabwe should be taught everywhere in the world and especially in India. And we Indians should not forget the classic case of West Bengal.
This is the best episode of CTC in my opinion.
1. Did I hear it correctly 00.54 "the richest 1% saw their wealth go up by 1% whereas bottom 50% saw their wealth increase by only 3%.
2. As a middle class person I can sense that the vast majority of our people do not grudge the rich their wealth. What angers them is the feeling that the rich are gaming the system to their benefit and to the detriment of the rest.
Excellent analysis
Excellently put, great job
Report 100% Correct and its present status of our Country Sir....and You should focus on the issues of Majority of Indians going through daily from long long years sir... Anyway I respect you for this platform..... God Bless You... With every reality of India Our Country Sir...
Absolutely rightly said, hope Mr Gupta gets noble prize for good economic journalism
Sir I eagerly wait for your episodes. Finally we have something on the internet that has balanced views and independent minded analysis.
None of our industrialists has real philanthropic instincts. None has worked sincerely to better the lot of the poor. None has created any enduring institutions such as the Carnegie Trust, the Ford Foundation or the Bill & Melinda Gates Foundation. All that our industrialists have ever done is create charitable trusts to save on their income tax. Andrew Carnegie once said, "At the end, the acquisition of wealth is ignoble in the extreme. I assume that you save and long for wealth only as a means of enabling you the better to do some good in your day and generation."
Man i am really impressed...........wonderful analysis by Shekhar Gupta.......i have to say sometimes this guy really surprises us......Calling out organisations like Oxfam for what they are........
Wow! A Hard hitting talk!! It sure drilled sense into me!! Thank you Shekhar Gupta! You rock!!
This was the most boring episode of CTC, with little to hold my attention until the example of Venezuela came up. After that, it turned out to be one of the most interesting episodes of CTC till date.
It's always a good idea to give Shekhar Gupta the benefit of doubt. He may produce videos with terrible sound quality (those outdoor video experiments in Mumbai), but never with poor content.
Once again, thank you, Shekhar.
wow.....just wow ...An eye opening monologue ......Thank you Shekhar Sir for this great insight.
however i have a simple question .....where that 700 crore came from (Ambani daughter wedding) ? was that his personal wealth or he liquidated some of his assets??
Good point
very good analysis
Clear Ananlysis sir, I am From Nepal
Saw this after you referred this CTC in today's Live CTC. It is indeed a good factual CTC.
Excellent episode.. It is high time India embraced capitalism.. Please do talk about smaller governments with lesser bloated loss making psu.. And also about freebies which are really about instant gratification
The way oxfam measures assets is the correct one because we have the convention of law of inheritence. All the assets are transferred to the family only. Asset is wealth which needs to be distributed among the people of state no ne can be the sole owner. Keep the profit but not assets. Then only the oxfam reports can be demonished the way you are doing sir
Education is investment! Education is an opportunity to learn. The moment it becomes an investment we must stop calling it education.
This video made me to subscribe to this channel. Courage to speak up the truth. Great!!
Sir, I salute you for your amazing analysis on this propaganda report.
This whole idea of Polarising the general public with eyeball grabbing headlines is like poison to democracy. We didn't get to where we are today because of dictatorships. Thank you for putting this out in the open
Thank you for guiding my thoughts through the right path.
sir I really appreciate your attempt to debunk many myth related to this report.
The Rich have became richer in India by 38%, however the amount of tax paid by rich has decreased and the tax paid by middle class has increased.. How is this happening??
Exactly...and there also should be inheritance tax also.
Bcoz rich know the rules of the game, u don't become rich by paying taxes. Start a business, everything u spend can be deducted from your earning , which means less tax, basic economic 101
Totally agreed
Superbly explained sir... Thanks.
Great sir,bcoz it's tough to predict ur stand ,high objectivity,,
This is not povertarianism, what Oxfam is doing. It is pure unvarnished blackmail. Government should take them to task.
U r absolutely right. Listening Ur video, I recollect what Kejriwal did when ACB was with him fr few days. He filed FIR against Ambani . If u give him Police, he will put many industrialist in jail.
Wonderful Analysis, really good
Could you talk about universal basic income ? and your opinion on it. Will it work in India? Is there any other solution?
It's theft. Take from the working... Give to the lazy. What the hell. If you can't survive in the market you don't deserve free things. Learn marketable skills.
Wow. Mr Shekhar Gupta : Good Job!
Shikhar, you are missing one point. You mindset is that rich, entrepreneur and capitalists are a different breed and only they are capable of driving innovation, so they should own greater portion of the profit and accumulate wealth. And for this reason they can underpay their employees.
Reality is education system in also unequal and impartial, so the rich can get better education and can learn business skills from their parents. While the poor get education from mediocre schools and colleges and are not taught about the economics of money or any business acumen. Even if they are taught, they can't risk or experiment their ideas as their family income is low. They want to secure a job first to stabilize their income. Whereas the rich kids if taught correctly, can acquire good business skills and experiment with the money.
If you can implement universal basic income and secure a fixed amount of income enough for basic facilities like food and shelter, give equal and quality education for all, even commoners can make use of the time and money to start their business.
So Oxfam is right here. Capitalists think, they can do all by themselves, only they can move things forward, so they should underpay their employees and own a larger chunk of profit. That is not True.
Nice analysis. Good thoughts.
Hello Shekhar sir,
This is a question for the weekend edition:
Many political parties make EVM a scapegoat after loosing elections inspite of it having stood us in good stead for almost 2 decades now. Earlier it was blaming the messenger but now a bigger attempt can be seen even by civil society activists to change the narrative regarding it's use. This is inspite of them not being hackable as demonstrated by ECI to public as well as SC and the subsequent reforms like VVPAT.
What are your views regarding the controversy of using EVM and what might be the motives of the civil society activists?
Job Brilliantly Done.
Can't agree more on this good and it matches of my assessment too
Great analysis Sir!
Great explanation
it is said that if it was able to restart everyone at zero, the same rich will become rich, the poor will still be poor, there is no such thing as equal , it is the wealthy that reinvests and create jobs, and continue to reinvests to create more jobs.
How come the same type of rant is not directed by Shekhar Gupta against Forbes which prepares its annual Billionaire list in the same way ? Forbes celebrates it while Oxfam tries to invoke guilt and disgust !
Sir, how do you differentiate the state fund and a dharma hundi(temple donation box)??
Thank u for the insight.
Spot on!!
10% tax on 50 billion personal wealth will reduce to 20 billion? Seriously ?
So Modi is right in kicking the a** of these self styled, poor friendly NGOs ????
good info ,,, thanks
Cut the clutter on proportional representation. Can it be implemented?
For any country to develop rich people's and risk taking entrepreneurs are very nessary so we should stop hating wealthy people's
when you agree in the first 3 min then the basis of this argument is futile. Leave aside data, inequality is growing and this video is not helping solve it.
We really should compare consumption. How mucg do the rich consume and how much the poor consume. We will see the difference is even less. When rich die, they will leave so much wealth behind them.
So the report is not flawed..the way people have arrived at solution, to solve the problem identified in the report, is completely flawed. To bridge inequality, you don’t go ahead and start hating high net worth individuals, harass them, tax them exorbitantly higher, etc but to bridge the gap the governments have to start giving more opportunities to low net worth individuals so that they can start their own business, be more entrepreneurial, allow them to fail by not penalizing them financially if they fail, etc. The headline definitely captured the attention but the last lines from Shekhar were truly relevant.
It is totally flawed. Whether Oxfom know that even a Janta flat in Delhi is worth 40-50 lakh rupees. That mean most Delhi landlords are crorepati. And most of these call themselves poor ,even have BPL card.
Usually i agree with you Mr Gupta, but that is a breathtaking of amount of angst on behalf of the rich!
Nice info
I like Mr. Gupta, but am saddended by how little he understands wealth related calculations. In his example, if a middle class family buys a home valued at 10 lacs, and they borrow 8 lacs against it, their net wealth is still positive at 10-8=2 lacs. After 10 years, assuming that the house is now worth 15 lacs and 3 lacs of the 8 lacs loan is paid, then the net wealth of the family is now 15-5=10 lacs, a 5 times increase in wealth. I hope he realizes the nuisance related to this math, relooks at the study, and provides an update to this very serious issue. I am extremely interested in understanding levels of inequality in India, but with hard math and facts. Analysts with limited understanding of mathematics make up for very stupid conclusions
Whilst making valid points in terms of flaws in the study. We are being blind if we think that the access to capital does not play an out sized role in the access to services and opportunities. Not saying tax everyone to hell but we need to think about redistribution mechanisms beyond just high taxes.
6:20 *Can anyone please elaborate how that 50 billion fell to 20 billion when the tax rate goes up?*
Ocasia-Cortez should watch this video.
This video has very little to do with any flaw in the oxfam report and the main concern it addresses is the misunderstanding of the term wealth amongst common people.
Nobody wants to destroy the rich wealth but we want the government to take fair tax from them and spend the money on education and healthcare for the poor also by fairly taxing the corporate the government can reduce the tax on essential commodities and food items which will again help the masses..
Their calculations n data may hav sm issues but also look at ILO report about india how wage rates have not increased as compare to gdp..plus it also highlights low spending on health n edu ..two biggest reason for income inequality
Tax the rich and they will leave the country in droves or find loopholes to avoid taxes. You can't tax the poor.. Only the middle class will bear the burden. The ideal situation should be to lower taxes allow Entrepreneurship to flourish to generate jobs. Increase tax base by urbanisation and reducing the percentage of population dependant on farming by 90%.
This must be one of the most inane takes on this report, world wide..the likes of which you can probably find in some extreme far-right libertarian fringes in the US..and that only shows how guarded and protective the rich in India are about their self-interests. Even if that puts the entire country at a disadvantage, they are like "so be it"..maybe the thousands of years of the immoral social structure we had, by the name of caste, and the graded inequality it maintained, has habituated these ppl to think such gross inequalities are only natural.
He talks abt Oxfam proposing raising taxes on Indian billionaires by 0.5% which will increase our health budget by 50%, only to say that this is nothing but "going back the Venezuela way"..Only the most insane right wingers in the West will bring up Venezuela when somebody talks about raising taxes..That too for a raise as meager as 0.5% if Mr.Gupta is so flustered, you judge what is he..
He cheaply attributes motives to Oxfam that they want the rich to feel guilty so they can get more donation, but does he have the decency to declare his own income and wealth so we can judge whether he gets to speak for the masses of the country, or if he is part of that 1% or whatever that will be directly affected by a slightest shake to the status quo..
People like these, and their fervent guarding of the status quo in the garb of journalism, research, think tanks etc. is one of the biggest problems we have in this country, as big as the usually discussed problems arising out of religion, caste etc..you can see the same kind of thinking in another one of discussions I have seen with Piketty, where our "economic adviser" Bibek debroy will go crazy at the mere mention of having an inheritance tax..Only when these low-lifes are driven out from the corridors of power, real changes will happen in this country.
Liked it
That was a mighty piece of Gyan. Thank you Shekhar saab!
Dear Sir,
While being an admirer of your analysis, this one specifically was not just a seriously flawed analysis but also based upon distorted concept of wealth.
a) Firstly, the distortion in concept."Surplus Assets" is perhaps the only measure of wealth -- universally accepted by economists. And if such assets happen to be "productive" --- such as the companies, owned (through shares),by the Indian Billionaires are --- then that is the best form of wealth because it produces steady stream of cash flows, which due to disproportionately less taxation, ( disproportionate to what is left behind in the plate ) -- leaves disproportionately greater "profit/surplus/ wealth " & further enhances the asset valuation -- making it a collateral which is the most acceptable to any lender. This essence , is derived from the basic concept of market capitalization. Your concept is in total contradiction to this basic essence of Capitalism.
b) Secondly, the flaw in the analysis. Comparing the Oxfam recommendation of a 0.5 % tax on wealth with 90 % tax on income -- is plain misrepresentation and an over magnification of the proposed solution. The example of Venezuela is both factually and analytically incorrect. Tax Rates in Venezuela are about 34 % for IT (direct taxes) and about 12 to 14 % on goods & services ( Indirect taxes) -- both of which are lower than India. Conceptually, too it is incorrect to state that higher taxes rate leads to Inflation -- its just the opposite. Higher taxes, leaves less money in the hands of consumers -- leading to less demand and therefore lower inflation. Venezuelan economy crumbled due to over dependence on oil exports (96% of its revenue)--and its price collapse. Most other businesses/ industries were taken over by the govt and mismanaged. To meet the imports as well as the interest costs of its borrowed money --- the govt resorted to more & more printing of currency notes --- leading to huge money supply to chase the fewer & fewer of the available goods --- resulting in the hyper inflation.
c) Therefore, just a little more taxes on the wealth of the stinkingly rich --- would pose no risk at all to either the vast of the middle class -- which is the aspirational population -- which still has enough gap to aspire to grow.
d) Therefore the wealth tax on the super rich is well justified to get critical advantages to large sections of the deprived people.
e) In conclusion, this specific piece of writing does not cut the clutter -- rather, adds the clutter.
Excellent analysis. Thank you.
Shekhar, you have failed to factor in the "middle class squeeze" that India (of course it is a global phenomenon) is facing. Middle class squeeze is a situation where the salaries of the middle class do not keep up with the rise in costs for basic necessities like house, food, car/bike (middle class requirement in many cities), education etc. Also the inflation and other taxation means that the prices of these goods goes higher.... resulting in lesser savings.
As a result, rupee for rupee, my middle class grandfather had a bigger house, more gold for his wife and better food security and medical treatment. He didn't have "brands" but he was able to have a few more helpers around the house as well.
A classic example is the decline of the airline industry services. In the past, there used to be larger seats, more leg room, more food and good services. If things had improved as people tend to believe, it would've been better than the services that we are getting now (less leg room, less food, less service on a full service airline). The airline experience has gone down, not up.
As a result, the middle class is more in debt these days than the middle class of my father's time. And it not getting better, it is getting worse, specially for salaried people, who make up the bulk of the middle class.
In the light of this, the middle class is getting indebted and poor, with the assets barely managing to break even (sometimes people are even selling their houses for a loss). Also the rich are definitely getting richer, and this is putting a very bad taste in the mouth of many. In case of India, demonetization (only affected the poor) and GST (affected the small businessman and trader) have been double whammies and it will squeeze people further, though they might not know why this is the case.
Very stupid argument. More people have come into the the middle class and can afford the things that only your grandfather could afford. The services and infrastructure are not growing as fast that is why the airline seat argument not as how you make it.
@@Udayvictor More people are into a lifestyle, but unable to acquire these quickly. They are on 20-30 year loans or are falling back on parents earnings to make ends meet. Services and infrastructure growth is not an issue, it is the quality of services going down over time.
That reaction at 9:24 ...😂
For once Mr. Shekhar Gupta seems to have missed the point and his arguments are confusing. Rising inequality is a reality in India, which ever way you look at it. Inequality is mainly due to lack of opportunity and in turn, the latter leads to the former. The solution is not to tax the rich but to provide greater equality of opportunity, through more affordable and better education, health services and housing for the masses. The government has the primary responsibility for this and it must motivate the rich, through appropriate tax reliefs and regulations, to ensure their effective and successful partnership in the creation of social infrastructure. The government alone doesn’t have the requisite resources to adequately create the social infrastructure required to create the social infrastructure required.
Question : isn't there a need to recognise and mainstream a right-of-centre or right ideology in the public discourse of our country which has always had a history of left-of-centre or left rule and thinking, atleast after independence?
Don't you think that it's the alienation and innate bias against anything that is close to right, that is creating the surge of extreme right wing and every other evil that comes with it?
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Anything which pinpoints problems in Indian economic model is flawed...hypocrisy at its best...bas image bachanay main lag jao instead of working on real problems on d ground. .
Socialism has never led to reduction of poverty and never will.
It has. The Yadav clans from UP and Bihar moved out of poverty 😂
Yes, their is inequality as concluded by shekhar gupta and thank you to accepted it. Whole video is anti oxfam( propaganda) with insufficient solution to problems. Some what disappointed with no touch with ground reality.
That's true very true. Oxfam wants to create an awe by emphasizing these figures. However things like quality education,stability,peace and investment in research and development are more important determinants of wealth creation in 21st century than lower taxes. . We should not also have american style of capitalism(privatized) where after spending 20% of GDP on health a quarter of their population remains out of health coverage and a large chunk of population does not have access to education which worsens inequality.Please sir let us know your thoughts on Education and Health(socialized or privatized).
Further Venezuela's crisis shows the importance of self-sufficiency in food grain production and the need to increase investment in agriculture. I think a country can survive all kind of economic crisis if it has self-sufficiency in food grain.
He has begin shifting to the right just as election nears, this is called “playing to the gallery”.
% of people
Earth and environment pollution radiation?
Report ISRO vsss since 2000
Inform Pm president supreme Court defense minister minister
Start whether radiation pollusion report center small way
Stigmatized capitalism
Opinion of SG is far removed from reality, and not having enough knowledge of topic....!!!
When will you cut the clutter around Priyanka Gandhi's new role
Shekar, i have watched all your episodes; but this was terribly boring.
Either capitalism or communism in its totality is detrimental to well being and progress humanity. America had to adopt communistic principles of state enterprise during great depression. And India didn't abolish private enterprise. Either Nehru or Indira tread a middle path. What they nurtured and groomed was Indian nation. They saw great role of the State in building infrastructure. They did it. So national interest and preservation of sovereignty of India should be the priority for any leader of India, which is not the case with any leader after Indira ji. And is destruction of manufacture and farming not destruction of wealth and wealth creators? 80% of edible oil is getting imported for the last two decades. Food grains production increased manifold thanks to green revolution, but farmers are committing suicides. Manufacturing growth turned negative and continuing down trend for the last one decade. 20 lakh small and medium industries are shut down during the last two decades. Down with the issues of capitalism or communism which are thrust upon us by aliens. World is laughing at India for turning into a banana republic. Let us feel shame. Janardhan Prasad.
For heavens sake stop flaying your arms around, it is not necessary to make a point. It is very irritating
बीजेपी join कर ली क्या शेखर सर ?
Really stupid argument by Mr. Guptha. Maybe next time start providing an definition of Wealth. And on venuzella, why is he not talking about sanction on them and how it got affected. Really complete waste of time.
sir,
why u always support modi directly or indirectly. ur journalist behave like impartial .u may be on mod'is pay list.remember people belive ur words.so be justified to your profession.