The outcome of India’s general election may have dramatic consequences for the nation’s economic health.
India now has more equal wealth distribution than the United States. Steven Rattner, a Wall Street financier and former Obama administration economic adviser, recently announced this on MSNBC’s Morning Joe, while discussing Thomas Piketty’s new book, Capital in the 21st Century.
It sounded unlikely, but Rattner’s charts and statistics showed that India is indeed a more equal society. The top 1 percent of Americans earn more income and hold more wealth, compared to the nation’s poorer citizens, than their Indian counterparts.
Economists are puzzling over how this happened. One key reason could be the massive income-redistribution programs that Indian Prime Minister Manmohan Singh and his Congress government have created. Though many programs are inefficiently run, they have achieved some remarkable successes.
Some 815 million Indians have registered to vote in the world’s largest democracy, in an election that runs more than a month, April 7 to May 12. The Congress government now looks likely to lose to the Bharatiya Janata Party (BJP) under Narendra Modi, who has a strong Hindu nationalist background. This new BJP government is expected to focus more on overall economic growth than equality.