The masochistic Indian middle class

'Middle class' has always been the club of choice, where  everyone wants in. And what defines the 'middle class' is not an income bracket but a state of mind, which revels in self-flagellation. The 'aam aadmi' is perhaps always looking for the black spots.

 

Arvind Kejriwal said in his speech, "For the BJP, the poor is the aam aadmi, but for us, even the middle class or the small businessman or one who wants to live within the law is the aam aadmi".
 

It was an interesting observation. Especially if one looks at it from the perspective that 20-30 per cent of India – the middle-class tax paying person – subsidises the rest 70-80 per cent. Of course, even Corporate India does pay tax but with their smart chartered accountants, they would have more ways to save tax than the middle class.
 

So, there is certainly some relief being provided by the Delhi government at a subsidy bill of around Rs 600 crore. But scores of people are already questioning the economics of AAP. Comments like 'Oh, he will destroy the economy', 'He is socialistic,' are quick.
 

Let truth be told. The Congress, BJP and their ilk are happily providing a subsidy of Rs 2 lakh crore at the central level. If state subsidies are also included, the numbers would be worse. Worse still, much of this money, by the admission of various finance ministers, does not reach the so-called poor. It is siphoned off or to put it euphemistically, ‘slippages’ occur. And much of this 2 lakh crore plus comes from our taxes.
 

So, why is the middle class worried when the Delhi government, which has a budgetary surplus, is giving back the middle class some of its own money? Where is the bad economics?
 

Besides the 10, 20 or 30 per cent tax slabs, there are so many other taxes we pay on a day-to-day basis. Some of them are exceptionally high.On an average, the middle class pays a good 30-50 per cent of its salaries in taxes annually. Yet, when one state government gives the middle class some subsidy, they are the first ones to question the economics.
 

The agricultural rich buy Mercs and BMWs, but do not pay any income tax. And MNREGA may have made it tougher to get labourers.When a friend tried to get workers to build a house in a village, he was met with refusals as few people were inclined to work as they were assured of an income doing nothing.
 

The argument that the exchequer is already burdened because of existing sops and new ones should not be added is fair. But to say that a small additional subsidy which goes to the middle class is bad economics is being unfair.
 

When will the middle class stop being masochistic?

http://www.business-standard.com/article/opinion/the-masochistic-indian-middle-class-114010600399_1.html