Sunday, May 22, 2011

Inequality...

Article;

http://economictimes.indiatimes.com/opinion/editorial/india-poor-for-sure/articleshow/8524186.cms

Comment;

The most reliable index of equality in macro-economics is calculation of per-capita income, national income divided by population. The per-capita income of INDIA is around Rs 56, 000 and people subsist on less than Rs 110 a day. And, if we multiply 110 with 30 days (number of days a month) we get a figure of Rs 3, 300. An when we compare this figure with our per capita income we see a huge difference Rs 52, 700. This reflects the level of inequality within our economy. The extent of poverty largely decided by appointed committees say that atleast 50-60% of our population is poor. Committees differ in their poverty and inequality estimates. The above comment was to convey that how mathematical estimates can be wrong in depicting a true picture of the economy and as far as per-capita income is concerned it sometimes surprise others with a non-economics background students and general public.

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