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Vivek Dehejia is an Associate Professor of Economics and Philosophy at Carleton University in Ottawa, Canada and a columnist. He holds a PhD in Economics (1995) from Columbia University in New York, where his thesis supervisors included the Nobel laureate Robert Mundell and the noted international trade economist Jagdish Bhagwati. Dehejia is also co-author of "Indianomix: Making Sense of Modern India"
Poverty is clearly a greater challenge; we should be mindful of inequality as well, but with a per capita income of $ 5 a day, redistributive justice will not suffice. 2. Some years ago, one did not agree with Surjit Bhalla’s call for rate cuts; however, felt it was an honest difference of opinion. He now seems to tender tailor made opinions and advice.
Thank you for the nice article. I feel you are right in your finding, inequality should go up in this scenario. I do not have data to support it. But I do see it around me. In my native village there are no poor people as defined by government. Everyone has a house and everyone has good meal throughout year. Earlier middle class have moved on and become rich. People who were working as laborers are working in cities with more income.
If I compare the income of richest and poorest in the village, both have gone up. But rich persons income has grown sharply. It is just bad graphics and should be ignored. Any policy change to correct this will result in going back 26 years. As author indicated it will take time to correct this and we should let it happen on its own. I vote for growth over inequality. I am bit skeptical whether my vote matters?