Renowned political economist and author, Gautam Sen, expressed scepticism about the practicality of implementing a wealth redistribution policy in India. Sen highlighted the challenges such a policy would face, emphasizing that it could potentially bring the economy to a standstill.
According to Sen, the implementation of wealth redistribution would require liquidating businesses owned by individuals with substantial wealth, which would disrupt economic activity significantly. He pointed out that many small businesses, such as local stores and repair shops, would be adversely affected, potentially causing the economy to grind to a halt.
Moreover, Sen emphasized that even if a wealth tax were imposed, the revenue generated would be insufficient to significantly benefit the majority of the population. He underscored the complexity of conducting regular surveys to assess wealth distribution and questioned the practicality of such an approach.
Sen acknowledged the progress made in India over the past decade, attributing improvements in welfare to investments in infrastructure and social services. He commended the government’s efforts in enhancing welfare for the poor but cautioned against unrealistic expectations of rapid economic growth.
While Sen recognized the potential for significant improvements in welfare with sustained economic growth, he cautioned against expecting drastic changes overnight. He emphasised the importance of steady progress over time rather than abrupt shifts in policy.
