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A bigger problem is the insane benefits someone rich can reap with just a savings account in India. The large interest rates that you get in the State Bank and
by shriphani 15y ago
A bigger problem is the insane benefits someone rich can reap with just a savings account in India. The large interest rates that you get in the State Bank and the enormous loopholes that everyone exploits essentially means that there's an entire class of people whose interest earned on savings is sufficient to land them in the top 5% of the population.
Why would anyone be motivated to take risks after such a deal ?
Also, no government can solve India's problem. 600 people (few uneducated, several underqualified and some with a shady past) to make decisions for a diverse 1 bn population? That doesn't scale in any way whatsoever.
- kubrickslair 15y agoWell, one can get many multiples of the investment if they focus on real estate as opposed to the savings account. The rich are indeed getting fabulously rich. And all the while the conditions of the real poor are in fact getting worse. And as someone whose family/ community falls into the capitalist class I see condition of most of the employees degrading first hand. The so called middle class is in some sense living in a bubble, working semi-coolie jobs for MNCs (for the most part) and thinking that their more hip lifestyles are in some ways representative of a sea change in India.
- samsudden 15y agoI am sure the benefits of savings accounts (4% p.a. return on average?) are not sufficient to foster an entire class of people living on them. Most businesses would give returns far higher than this, making the risk-free saving account not a great option.