The world is no longer what it used to be. It is no longer progressing towards a brighter life for all and not thriving on ideas to innovate, as the need for the hour is only to sustain.
As sad as it may sound, this is the truth of 2020, it is the year of survival. With the rising economic pressure, the needs of relics must be catered to, but will it solve the problem for everyone? Let us dig deeper into the question in respect of the middle class.
The pandemic has not only caused a health emergency but also has laid the foundation for the upcoming depression. The government of India is doing the best it can to prevent the long term effects of this economic crisis, by becoming more lenient on tax and loan payments. Though these efforts might prevent industries from getting bankrupt, the problem is that industries are not generating revenue without which payment of variable costs is not possible. One of the major portions of variable cost is spent on salaries and wages, so firing employees seems like the best alternative.
With 12 Crore jobs lost in the service sector (the largest employer for the middle class), the group is hit worse by the economic crisis. People in the middle class from having a few characteristics in common; the limited source of income, low savings and numerous responsibilities. These characteristics only suggest their inability to function for a long period without a job. The unemployed middle-class segment is turning towards jobs way below their qualifications to survive, one example of the same is the increasing number of manual workers in the state of Uttar Pradesh with a Master’s degree. This clearly suggests that the government’s steps to prevent an economic slowdown are no good for the middle class in the service sector.
If we don’t stick to the service sector and talk about the middle-class population employed in other sectors, things aren’t looking great there either. For startups and MSMEs, the market has become non-existent, with low expenditure by the population as a whole various small businesses are suffering. The government’s relief isn’t fruitful here either due to the lower amount of capital as compared to big enterprises.
The middle class that has worked so hard to maintain a good standard of living for all these years may not be able to do so. The whole segment will have to face extreme penury if the government fails to cater to their specific needs. It is high time that the government realizes that its responsibilities do no end at providing free stuff to the poor and concessions to the rich. They need to start focusing on the middle segment too, because ignoring this class will only result in more harm.
We hope that the government of India starts taking specific actions to help the middle class, the segment which has helped their country’s economy for all these years.