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I think this paints an overly rosy picture of welfare programs. It reads like what a rich person would imagine how poor people think. Taxes in India are comput

I think this paints an overly rosy picture of welfare programs. It reads like what a rich person would imagine how poor people think. Taxes in India are computed in "slabs" of different rates. I believe everyone in India are allowed to exclude $3.5K from their annual income for computing their tax obligation. Of course, those making less that $3.5K do not pay any taxes. But those making over $3.5K do not pay any taxes for the first $3.5K of their annual income. So, there is no incentive to earn less as OP seems to suggest.

alephnerd 3y ago
> overly rosy picture of welfare programs I agree (I couldn't edit it by the time the limit ended)! The bigger issue is factory work is unappealing because working 10-12 hours a day under the table earning $250-300/mo doesn't make sense for most people. Rural and lower class life does suck (heck my dad grew up in a jhuggi), but earning money for yourself is better than being at the mercy of a factory owner who can and often holds back your salary and doesn't provide housing. That's a major differentiator between Chinese and Indian style factories - Chinese factories provide dormitories but Indian ones can't due to some regulatory issues. Furthermore, most well paying factories aren't established in smaller towns or non-tier 1 metros, and the kind of demographic who would be open to working at a factory doesn't want to leave their hometown to take a massive risk living as a migrant worker in Chennai or Noida. And that's why you see the boom in e-rickshaws in Tier 3/4 metros and small towns - it's an easy way to start your own business that's paying somewhat decently, and in most states welfare disbursement is "good enough" (as in better than 5 years ago). That said, this is a localized maxima, and major reforms are needed, because this kind of an unorganized industry is going to eventually crash due to oversaturation.

alephnerd 3y ago

> overly rosy picture of welfare programs I agree (I couldn't edit it by the time the limit ended)! The bigger issue is factory work is unappealing because working 10-12 hours a day under the table earning $250-300/mo doesn't make sense for most people. Rural and lower class life does suck (heck my dad grew up in a jhuggi), but earning money for yourself is better than being at the mercy of a factory owner who can and often holds back your salary and doesn't provide housing. That's a major differentiator between Chinese and Indian style factories - Chinese factories provide dormitories but Indian ones can't due to some regulatory issues. Furthermore, most well paying factories aren't established in smaller towns or non-tier 1 metros, and the kind of demographic who would be open to working at a factory doesn't want to leave their hometown to take a massive risk living as a migrant worker in Chennai or Noida. And that's why you see the boom in e-rickshaws in Tier 3/4 metros and small towns - it's an easy way to start your own business that's paying somewhat decently, and in most states welfare disbursement is "good enough" (as in better than 5 years ago). That said, this is a localized maxima, and major reforms are needed, because this kind of an unorganized industry is going to eventually crash due to oversaturation.