Tuesday, July 18, 2023

Middle depends on top and bottom.

"The middle class is the fastest-growing major segment of the Indian population in both percentage and absolute terms, rising at 6.3 percent per year between 1995 and 2021. It now represents 31 percent of the population and is expected to be 38 percent by 2031 and 60 percent in 2047." ET. "Growing disposable incomes, along with the rise of the middle class, will make India a consumption powerhouse." The middle class is divided between Aspirers - household income between Rs 125,000-Rs 0.5 million ($1,543-$6,173) per year, Seekers - household income between Rs 0.5-Rs 1.5 million ($6,173-$18,519) and Strivers - household income Rs 1.5 million-Rs 3.0 million ($18,519-$37,370) per year, taking $1 as Rs 81 (xe.com). The World Bank defines lower middle income as gross national income (GNI) per capita between $1,036 and $4,045 and upper middle income as GNI per capita between $4,046 and $12,535. Of course, household income and per capita income are not comparable as the income of a household depends on the number of earning adults. For comparison, "According to research compiled by The Ascent, the median US household income is about $69,717. While the national average US household income was $97,962, the median is a better measure of Americans as a whole, as it's not skewed by extremely large or small incomes." fool.com. According to the Pew Research Center, middle-class income ranged from $30,000 per year for a single person to $210,000 per year for a household of five. Investopedia. Further, the US middle class has been classified according to which state they live in, hellawealth.com, as well as, which major US city they live in, Oakland Berkeley being the most expensive. CNBC. "The International Monetary Fund (IMF) projects India's GDP, in current US dollars, to reach $5.15 trillion in 2027 (India's 2027-28), past the coveted $5 trillion mark, to cross the GDP of Germany (fourth largest) and Japan (third largest) currently," wrote Subhash Chandra Garg. "The IMF projects India's growth, somewhat optimistically, at 8.72 percent until 2027-28." "Germany's per capita income is $48,438 in 2022, whereas India's is $2,389." "The country's merchandise exports fell 22 percent to $32.97 billion in June from $42.28 billion a year earlier while imports declined 17.48 percent to 53.1 billion in June compared to $64.35 billion a year ago." ET. The trade deficit was $20.13 billion. "India's share in global exports jumped from 0.5 percent in 1990 to 1.7 percent in 2018 to 2.1 percent in 2022, Union Minister of State For Finance Dr Bhagwat Karat said." DH. Not much of a jump, is it? Less than those of tiny countries like Netherlands (3.26%), Singapore (2.87%) and Hong Kong (2.79%). theglobaleconomy.com. Per capita income can increase only by increasing exports and jobs. We can have as many middle class as we like. Just set a low threshold.

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