The secret of happiness.

A recent poll shows that 58% of American people think that the world is ' going to hell in a handbasket ' and 61% are not hopeful about the direction of the US, but 40% still approve of Obama's job rating even though 49% think that they are worse off now than when Obama was first elected. We in India are very much worse off than in 2004. Crime is up, a scam is discovered everyday, politicians make mockery of the law by developing fictitious ailments when serving life sentences for murder, citizens of the country arriving from the north east are being beaten up everyday, Pakistanis and Bangladeshis are being allowed open entrance into the country to prepare bombs to kill us, and inflation and taxes have made us poor, while someone is willing to pay Rs 18 million for a painting by a politician. Credit Suisse Global Wealth Report 2014 says that 31.4 million households in India, comprising 160 million individuals, are considered middle class, with wealth between $10,000 to $100,000. The National Council of Applied Economic Research reckons that by 2016 53.3 million households, that is 267 million people, will be considered middle class with annual income between Rs 340,000 and Rs 1.7 million. After paying income tax a family consisting of 2 adults with 2 school-going children cannot possibly survive on an income of Rs 340,000 a year because prices have more than doubled in the last 5 years, with a plethora of new sales and service taxes enacted by the Congress. So, where is the wealth coming from. " As is common in the developing world, household wealth in India is heavily skewed towards property and other real assets, which make up 86% of estimated household assets," said the NCAER. Which has 3 implications. First, wealth in real estate is notional and cannot add to consumption unless it is sold, which is a one time acquisition of money which will gradually waste away unless the person has a high regular income, that can come only from higher education. Second, income from rent is completely non-productive, contributing to poverty of those who do not possess real estate. Third, and most important,the real estate sector is driven by black money and hence is very attractive for politicians, civil servants and assorted crooks of every description. That is why regulation of the sector is very lax allowing builders to blatantly game the system, leaving buyers and banks to pay for their misdeeds, unless a different political party comes to power. Construction standards are poor, waiting for millions to die if there is an earthquake. To be middle class is not just numbers. It is to be able to live with dignity without the fear of falling into penury in an emergency. Americans are at the top so they are terrified of sliding down while we are at the bottom so we hope to climb up. That is why we are so happy.