[Marxism] Fwd: Modi rules, Harvard doesn’t | Michael Roberts Blog

Louis Proyect lnp3 at panix.com
Tue Mar 14 07:46:18 MDT 2017

The Modi government remains optimistic that the Indian economy is going 
to pick up even faster this year and onwards, based on Modinomics, which 
boil down to privatisation, cuts in food and fuel subsidies and a new 
sales tax, a tax that is the most regressive way to get revenue as it 
hits the poor the most.  The aim here, as it always is with neoliberal 
economic policy, is to raise the rate of exploitation of labour so that 
the profitability of capital is boosted and thus provide an incentive to 
invest, something Indian capital is refusing to do right now.  Now that 
Modi has triumphed and look set to win the next general election in 
2019, India’s big business and foreign investors will expect Modinomics 
to be accelerated.

This can only increase inequality.  Already, India is one of the most 
unequal societies in the world.  The richest 1% of Indians now own 58.4% 
of the country’s wealth, according to the latest data on global wealth 
from Credit Suisse Group.  The share of the top 1% is up from 53% last 
year. In the last two years, the share of the top 1% has increased at a 
cracking pace, from 49% in 2014 to 58.4% in 2016. The richest 10% of 
Indians have increased their share of the pie from 68.8% in 2010 to 
80.7% by 2016.  In sharp contrast, the bottom half of the Indian people 
own a mere 2.1% of the country’s wealth.


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