The K is Indian GDP’s reality: Why deny? https://theleaflet.in/the-k-is-indian-gdps-reality-why-deny/ Arun Kumar·January 31, 2024
There are three different kinds of inequalities in an economy— wealth, income and consumption. The government supporters mix them up. There is a hierarchy between them with wealth inequality greater than income inequality greater than consumption inequality. As one goes to higher and higher income brackets, consumption becomes a smaller and smaller fraction of the income. So, the ratio of consumption to income falls with income. That is why income disparity is greater than the consumption disparity.
Further, the savings are invested and become part of one’s wealth. The higher the income, the more the savings and the accumulation of wealth. The poor have almost no savings and may be in debt, that is, they have negative wealth.
Thus, the wealth curve rises even more steeply than the income curve. The wealth of the wealthy yields an additional income and that leads to more inequality.