How black money is a reason for poverty?
Answers
Most of the key economic problems India faces can be linked to the existence of a large black economy. This should not occasion surprise, for no economy can thrive where billions of dollars are spirited out, black transactions abound in the stock and real-estate markets, and where even matters like getting admission for schoolchildren requires bribes. What is being revealed by official agencies or in the media with relentless regularity is only the tip of the iceberg.Due to the black economy, government policy fails and society is unable to achieve its goals, especially in critical areas like literacy and health. Consequently, a vast majority of Indians live in miserable conditions. For all the big talk of party spokespersons and the pseudo-nationalism displayed by ruling party cheerleaders, the unfortunate truth is that today the quality of life of an extremely large number of Indians is poorer than that found in most parts of the world. Worse, most of the schemes floated by governments have done little or nothing to improve the situation. This is because of the negative impact of the black economyLiteracy is low because money sent for constructing schools is often siphoned off and teachers are either not appointed or absent themselves. According to a Pratham report, 50 per cent of schoolchildren in the fifth grade are unable to read grade two books, and as a result are condemned to work at low levels of productivity for the rest of their lives and are likely to remain poor.
Literacy is low because money sent for constructing schools is often siphoned off and teachers are either not appointed or absent themselves. According to a Pratham report, 50 per cent of schoolchildren in the fifth grade are unable to read grade two books, and as a result are condemned to work at low levels of productivity for the rest of their lives and are likely to remain poor.
How the black economy is (really) making poverty worse in India
It turns the poor into consumers who want more things and have to pay more for their needs, effectively lowering their earnings.
Arun kumar