Pauperisation of salaried middle class

[dahiyars]

Dear All


Pauperisation of salaried middle class

The reduction of rate of interest on employees provident fund, alteration in the pensions schemes with the objectives of doing away the concept of social security and safety net etc., have made the future of the salaried people, millions in number, more vulnerable. The heavy dose of continued spending on consumer goods and luxury, in the capitalist driven path, without augmentation of purchasing power of the society in general cannot prove to be the saviour to bring the global capitalist economy out of ongoing vicious crises. But in the meantime, deluded by the media hype and allured by the bewitching market attraction the large section of middle class has been rushing for instant luxury and comfort spending their hard-earned money leaving nothing to save. The capitalist intrigue to enthuse the people to embrace consumerism, as their lifestyle is only to pauperise the millions of salaried, petty businessmen, technocrats, doctors, teachers and others rushing unconsciously to join the mass living below the poverty line. The human values are degrading day by day.

Please react

Dr.R.S.Dahiya

[rkumar]

Dahiya Sahab,

You have raised a very important issue. Even in the west they are facing these problems and there are no easy solutions. In UK they are now talking of increasing the retirement age to 67 so that they need not pay pension for so many years. Pensions need to be supported by working population as saving alone are not enough to pay for pension. One has to find one's own solution to this problem. One must invest into something which does not loose its real value with time. Honestly there seems to be no universal prescription. Following are few suggestions which one can go for;

1. Investments into real estate
2. Additional pension schemes like LIC pension

Additional investments are ofcourse not for everyone as it all depends upon the extent of savings. Trsut me, situation would be more and more tougher with passing time and there appears be no quick fix. There have be be individual solutions to this problem.

Rajendra

[raj2rif]

In the current economic crisis, Dahiya ji has raised a very pertinent question. While Rajendra Ji has given some suggestion, every one specially a middle class person may not be in a position of investing into real estate, for the cost of real estate has gone so high in last couple of years. Some times it is difficult for a salaried person to buy a house alone, leaving aside any investment. Most salaried person are a worried lot specially if they have one or two daughters to marry. The college education, childrens wedding expenses itself take away most of their savings. With employement situation not being very encouraging some times it leads to further frustration if the child does not get a job for some time.

The government may have to come up some thing to save the middleclass man. The best thing they can do is to ensure proper taxation specially on retail businesses who normally pay zero taxes while making much more money than a salaried person. Probably reducing the taxes on the salaried people would be one good idea.

[brad]

human vallues are not constant...they change...and majority decides what the value is today...so there is no degrade or upgrade...its just a change.

Capitalism is the only form of economy compatible with fundamental human nature. Humans are by design greedy, thats how they were designed by nature or god (whatever u beleive in)..u cant change that.

The current trend for the world is to move towards capitalism and it will keep doing so becoming more and more extreme, till it breaks down and then we will see a swinging in the other direction. This may take 100 yrs.
This is the law of nature. u cant change it.

There are always 2 ways to look at things. One is that govt is taking away all goodies leaving u high and dry. But the other way to look at it is that the govt is giving more power to the ppl. let ppl decide how/how nuch to save and where to invest and plan for future. Let ppl be responsible for there future and not the govt of the day. let market decide who is worth what.
Capitalism is a more democratic than economy run by govt even if the govt is democratically elected.

so bhaiyoon...padho likho aur fit bano...apne pairoon pe khada hona sikho...sarkari bai-sakhiyaan kab dhoka de jayen, kuch pata nahi...

[ramksehrawat]

Though I am not aware of state government employees, but the employees of the Union Government are themselves to be blamed for their lot. If somebody says the pay or the pension at Central Government is not adequate then God alone can help him. Those who overspend and over-indulge can only complain. Today, more than 80% of the Central Government employees own a car as well as a house that too by taking bank loans. Most of them don't really need a car but they go for it just because their relation, friend or neighbour has bought one. Poor money management is the sole cause for pauperisation and nobody else, including government, should be held responsible.

[deepakchoudhry]

Debt is big problem in UK as well. People spending beyond their means.
Consumer Culture is very prevelant.

Money can easily be borrowed be it Credit Card ot Finance companies.

No point blaming others for your Finance Problems.

I agree policies can have some have some effect but jaisay woh kehte hain "Utne Peyr pasariye, jitni lambi saud."

In Delhi there is a hoard to compete with another, People spend vasts amount of money in Weddings and Material goods, just to appear "respectable" in society.

My mausi was telling me that now on kids birthdays, everyone gets a return gift as will !!! God help our future Generation..what kind of values we are teaching them.