A different TINA.

"India's economic growth story has been impressive. Gross domestic product (GDP) is expanding, corporate profits are looking up and the country is asserting itself as a global economic powerhouse. But beneath the headline-grabbing figures lies a troubling reality: stagnant wages, biting inflation, insufficient jobs and growing inequality," wrote Ravi Venkatesan. He suggests that the government should increase minimum wage levels and company bosses should pay higher wages to their workers. In 1913, Henry Ford doubled wages of his employees from $2.50 a day to $5 per day and shortened the workday from 9 hours to 8.This allowed him to operate 3 shifts instead of two, increased productivity by 40%, so that "By 1919, a Model T car that sold for $800 in 1910 cost on $350. inc.com. India does not do such silly things. Instead, salaries of CEOs in the IT sector are now 500-1000 times the median wages of workers. TOI. The main reason for low wages is the law of supply and demand. India needs to create 90 to 115 million jobs to keep its economy growing. Manufacturing creates jobs but "India's manufacturing represents only 13% of GDP, compared to a quarter of GDP in Vietnam or over a quarter of GDP in China." "Less than half of the 950 million working-age population is actually employed, compared to 70% in other emerging markets." And, only 51.25% of college graduates are employable. hbr.org. If wages are stagnant and only half the population is working, consumption will be reduced and there will be no incentive for the private sector to invest in new capacity and job creation will remain subdued. Real GDP, or GDP at constant prices, grew at 7.7% in the first half (H1) of FY 2023-24 (April-September), while private final consumption expenditure grew at 4.5% in H1 of FY 2023-24 compared 13.6% in H1 of 2022-23 and gross fixed capital formation, which is a measure of investment, grew at 9.5% in H1 of 2023-24 compared to 14.7% in H1 of 2022-23. dea.gov.in. Thus, while the GDP growth was high, consumption and investment were slowing down. "According to central bank data, financial liabilities of households - borrowings - stood at Rs 77 trillion in June 2021, a year into the covid-19 crisis, and in the midst of a wrenching 'second wave'. As of March 2024, this had risen 56% to Rs 120 trillion. HT. Naturally, inequality is stark and increasing. "According to Oxfam's 2023 report, the top 1% of India's population controls over 40% of the nation's wealth, while the bottom half owns just 3%," wrote Navanita Varadpande. Faced with high unemployment and low wages, the government taxes the hell out of the middle class. "Personal income taxes, paid by less than 5% of the total population, pulled 19% of almost Rs 45 trillion total budget burden in 2023-24, or just over 30% of the total tax revenue and over half the direct taxes collected." "There is no alternative for middle India," wrote an angry Monica Halan. There is no alternative (TINA) was a slogan used by Margaret Thatcher. Investopedia. We have a different TINA. Much worse.