Market slumps and Inequality

http://economictimes.indiatimes.com/Swaminathan_S_Anklesaria_Aiyar/Markets_slump_and_inequality/articleshow/2318995.cms


In summary this article stated “ For years, analysts have worried about rising inequalities in India. Although the growth of the stock market sent several Indians into the Forbes list of top billionaires of the world; 300 million Indians are still below the poverty line.”
Another sad fact is “unless the poor participate in fast growth, uprising could disrupt our nationhood”, said Prime Minister Manmohan. Consequently India’s inequalities have fallen dramatically, but then you still have 300 poor people who beg to differ.
However, the ADB chief economist of Asia has been widely quoted as saying that high levels of inequality disrupt social cohesion, and could lead to civil war.

My analysis of this article is that inequalities are in every country and it seems to me that inequality has been here since almost the beginning of time. India’s inequalities came from those several Indians that are billionaires compared to the 300 million poor people. I think it is sad that the Prime Minister of India says if the poor people don’t keep up then they could have even bigger problems. However, how can a poor person keep up with a millionaire much less a billionaire. I do agree with the ADB chief economist when he states that high levels of inequality could lead to a civil war. I think that is all war is about; somebody else has what the other country wants, so we have a war and that decides who gets it. Inequality affects us today, people are so quick to make assumptions about a person from the way they dress to what they drive and in the end it really doesn’t matter. People need to learn not to look skin deep but look deep inside a person.