Opinion: Middle-class, the new poor

The narrative around poverty makes intelligentsia overlook the issue of economic insecurity which is equally important

By Samudrala VK

Hyderabad: Are Indians losing their trust in its economic system? Are the recent economic developments, both at domestic and international levels, driving them to a state of hopelessness and economic insecurity? Before casting light on these things let us chew over the current state of the Indian economy and what ails it. Though there are numerous reasons for its deteriorating health, let us diagnose the important ones.

Ever since India adopted Liberalisation, Privatisation and Globalisation (LPG) measures, not only the economy but also sovereignty has been subordinated to the capitalist structure. While the outside players are forcing it to become porous and fragile in the global economic cobweb, the domestic players are tweaking the economic sphere in their favour.

New Model

Usually, when an expert thinks about the profile of India’s economy, the traditional pyramid representation in which the poor form the base and the rich at the pinnacle, flashes in their mind. S/he fails to realise the fact that the conventional model is no longer an appropriate one to represent the rich and the poor divide. That doesn’t mean the Indian economy has gotten rid of poverty. Instead, the swelling middle-class, both lower and upper, is altering the long-existing notion of poverty. The current economic profile of India looks akin to a rhombus in which the insecure middle-class occupies a large chunk of it.

The prevailing perception of the middle-class is widely distorted. To say, the capitalist state treats the middle-class as a privileged class to trim subsidies and other social security measures. The state deliberately ditches the fact that the living conditions of the major chunk of middle-class Indians are as good as their poor counterparts. The capitalist state is denying benefits this class ought to get by attaching unfair terms and conditions to welfare measures. Now, the middle-class has become the ‘new poor’, thanks to the flawed and manipulative character of the state. Since the modern-day middle-class is devoid of any welfare benefits from the state, it has no option but to seek services at exorbitant prices extended by the corporates.

Economic Insecurity

It is important to mention here that poverty is different from economic insecurity. While the former discusses and relies on basic necessities that are essential for the survival of an individual, the latter deals with the conditions that an individual lives in after the basic necessities are met. In a crude-capitalist environment, there are thousands of obstacles to deter an individual from climbing up the economic ladder. On the contrary, slipping into the quagmire of poverty in quite easy.

The narrative around poverty makes intelligentsia overlook the issue of economic insecurity which is as important as the former. It doesn’t mean that the modern capitalist state is unaware of this fact. To be precise, for a capitalist state, poverty is simpler to deal with as there are neither ‘unanimously accepted’ yardsticks or parameters to measure it nor standard ways to counter it. This gives huge leverage for the capitalist state to design policies according to its whims and fancies. In fact, the existing definitions of poverty are false and pure humbug. It appears that all these definitions are being used as manoeuvres by the capitalist state to relieve itself from the prime obligation of providing decent living conditions to its citizens.

The volatility of middle-class lives can be attributed to the policies of the modern state. The class is barred from availing social benefits like public housing and Public Distribution System (PDS) in the guise of plugging leakages. The capitalist state has gone to an extent that the mere possession of a motorcycle by an individual is also viewed as a luxury. At a time, when one-time luxuries like bicycles and LPG gas connections have become basic needs, the worldview of the capitalist state isn’t in sync with the ground reality. Insecure economic status complemented by the highly volatile job market is taking a toll on the mental as well as physical health of the middle-class hoi polloi. Debt and unemployment are hanging like the sword of Damocles over the head of a middle-class man. On top of it, the contractual labour system and ruthless working conditions add to the misery.

Underallocation of Funds

Instead of taxing the rich appropriately and transferring the benefits to the poor and financially insecure sections, the capitalist state is going the other way by announcing tax sops to them. The systematic dismantling of social healthcare is a part of the grand scheme to sustain corporate health services and the giant insurance empire. Underallocation of funds and the state’s inactive role in sectors that affect the daily lives of the middle-class and the poor are crude ruses by the capitalist state to benefit its cronies.

Though the Indian economy may appear resilient to withstand global headwinds, the innate flaws in the system make it more susceptible to external shocks. A closer examination or cost-benefit analysis of modern-day development projects reveals that they aren’t meant for commoners but to benefit the close allies of the capitalist state. Outright sale of public sector enterprises and the overexposure of government banks and other financial institutions to corporate bodies are putting the hard-earned savings of the common man at risk.

Ever-growing inflation is forcing people to adopt a credit-driven life. The wages of urban middle-class workers are not in tandem with skyrocketing prices of essential goods and services. Against the backdrop of a prohibitive realty boom in urban areas and high tenancy costs, the issue of housing has become omnipresent. Intra-urban inequality is seeing a steep rise in post-reform India.

All in all, it proves that being poor or facing economic insecurity is not a self-made act or one’s personal choice but an organised scheme by the capitalist state to benefit its sponsors.

Over-reliance on the dicey stock market will prove detrimental to society in the longer run. The current economic slowdown and the Adani group issue demand action from the union government to redress the distortions that are being developed in post-reform India.