What are the potential impacts of inequality, wage stagnation, and inflation on long-term growth prospects according to Jairam Ramesh
Jairam Ramesh highlights that inequality, wage stagnation, and inflation can be structurally corrosive to long-term growth prospects.
- Inequality can lead to social unrest and lower social cohesion, which can hinder investment and innovation, essential for long-term growth.
- Wage stagnation can result in reduced purchasing power for consumers, leading to lower demand for goods and services, negatively impacting growth.
- Inflation can erode the value of wages and savings, reducing consumer spending and investment, ultimately slowing down economic growth.
- These factors combined can create a vicious cycle, where reduced consumption and investment dampen economic activity, impeding long-term growth prospects.
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6 months ago