Inequality or Deprivation

Recently, many noted intellectuals have raised concerns about rising inequality globally and within individual nation-states. However, this concern is grossly misplaced. The real issue is not inequality as such, but deprivation.

The collective responsibility is to ensure that everyone has the opportunity and motivation to earn a livelihood, and no one is left without food, clothing, shelter, medical care, security, and some means of enjoying life. Beyond this, it should not matter who owns how much.

Inequality is a natural condition—it will reappear in other forms even if suppressed in one. In fact, inequality can be functional. It often means that capital is concentrated in more capable hands. Greater capital in such hands typically leads to more investment, more businesses, and more opportunities for others to earn a dignified living.

It is human worth in general that translates into capitalism, and that in turn guarantees that each individual has the chance to realise their own worth. By valuing initiative, skill, and enterprise, capitalism channels human potential into productive activity, creating wealth and opportunities that benefit society as a whole.

Even in a seemingly full-blooded capitalist order, if some people remain deprived, it means the market is manipulated. This should be addressed with a two-pronged strategy. First, the manipulation is to be eliminated. Additionally, community life should be strengthened through community enterprises, encouraging people to form cooperatives to do business together, support one another, and offer services to others.

Niraj Kumar Jha

Way to Offset the Wealth-concentrative Tendency of Capitalism

Wealth concentration is a natural property of any active economic system. Capitalism is no different but offers a very effective way of offsetting the concentration of wealth. This may be community enterprises at the local level and cooperative capitalism on a larger scale. Many cooperatives are already doing very well in India. It needs to be extended to other complex entrepreneurial ventures.

Village residents can pool resources to establish a cooperative enterprise to run agro-product storage houses and provision stores in nearby cities. The irony is that MNCs and giant corporations sell cut vegetables, ground spices, and wheat flour.

A colony can run its cooperative provision store, restaurant, and health centre. Any community can reclaim many productive activities, which have gone to corporations. I remember cobbler used to measure our feet to supply customised footwear when I was a kid.

Communities can be the best and most reliable producers and suppliers of capital, commodities and services.

Niraj Kumar Jha