Question

State whether the following statement is True or False with reason:

Several factors are responsible for economic inequality in India.

Answer 1

This statement is true.

Reasons:

1. Increase in the gap between rich and poor: Economic inequality is a result of exploitation by the rich. A high level of economic inequality is associated with high levels of poverty, unequal income distribution, increased political instability, etc. All this leads to an increase in the gap between the rich and the poor.
2. Concentration of wealth in a few hands: The economic standard of people in a state depends on several factors like the resources available, management and organisation, fertility of land, distribution of wealth and so on. Not all states are equal in this regard, leading to economic imbalances. Unequal distribution of wealth within a state causes tension and conflict. Very often, wealth is concentrated in the hands of a few.
3. Unrest among the poor: Economic inequality breeds discontent among those affected. Unequal income distribution increases political instability. The exploited class unites to fight against it.