The disparity between India's status as a “fastest-growing economy” and its neglect of robust social security measures requires transformative solutions to provide dignity to its aging population and align policies with economic growth.

As the Union government continues to tout India's projected status as the world's fastest-growing economy and pursues ambitious plans to take the country into the realm of a $5 trillion economy, a puzzling discrepancy is emerging. Despite the rhetoric about unprecedented economic growth, there is a noticeable lack in the provision of basic social protection measures, particularly in the area of ​​pensions. This dissonance raises an important question: Why is a country hailed as the “fastest growing economy” struggling to provide pension benefits to its citizens, and what solutions can be proposed to deal with this inequality? Addressing this imbalance is not just a matter of economic prudence, but a moral imperative to ensure a decent livelihood for the aging population.

On the one hand, the narrative of India's economic performance is relentlessly repeated by the government, highlighting rapid GDP growth and upcoming trillion-dollar milestones. However, this narrative is countered by the grim reality faced by millions of older citizens. Despite claims of robust economic growth, millions of senior citizens remain without adequate pension support, raising a crucial question: Why does the government lack the resources to maintain, let alone establish, the legacy pension system (OPS) for government employees? a comprehensive, universal, non-contributory pension scheme for the millions who have dedicated their working years to the unorganized sector?

Pensions are central to the social security of retirees, ensuring economic stability through sustainable spending, facilitating workforce flexibility by enabling retirement, and promoting the health and well-being of retirees. They also contribute to social cohesion by ensuring fair treatment of older citizens and promoting long-term financial planning. By providing stable income, pensions alleviate poverty in old age, support economic growth, create opportunities for younger workers and promote personal and social well-being. Therefore, the lack of expansion of pension benefits in a fast-growing economy like India represents a significant obstacle to achieving comprehensive social well-being. Addressing this deficit is not only a matter of economic prudence but also a moral imperative to provide a decent life for the aging population to secure livelihoods.

Analysis of the tax argument
A common refrain used to justify the inability to maintain pension systems, particularly the legacy pension system (OPS) for public servants, revolves around fiscal constraints. Proponents of this argument claim that the state simply cannot afford the financial burden of pension payments. But upon closer inspection, this justification falls apart. In theory, if the economy is actually experiencing robust growth, pensions should become more bearable over time, not less. So why does the government insist on the opposite?

Beyond fiscal constraints lies the deeper truth: the government is prioritizing capitalist interests over social welfare. While the government cites economic growth as its primary goal, it maintains a system that perpetuates inequality. Instead of investing resources in social security measures such as pensions, a disproportionate amount flows into enriching the wealthy elite. This preferential treatment of capital over citizens is not only unfair, but also does not make economic sense.

Addressing the pension crisis requires a paradigm shift in resource allocation. Contrary to popular belief, there is no shortage of resources; they are simply assigned incorrectly. In 2018 and 2019, for example, a fraction of national income could have been enough to ensure adequate pensions for millions of older citizens. By taxing the wealthiest segments of society slightly more, the government could generate ample resources to finance universal pension systems.

The economic ripple effect
The introduction of a general pension system goes beyond mere social assistance; it has the potential to accelerate economic recovery. At a time when crony capitalism is struggling with overproduction and stagnation, increased government spending, fueled by progressive taxation, is proving to be an effective antidote. Injecting funds into the economy through pension payments would increase demand, breathe new life into stagnant markets and revive economic growth.

Given the inherent contradictions and inadequacies, initiatives such as universal pension systems are proving to be harbingers of change. These measures not only alleviate immediate social distress, but also challenge the status quo and pave the way for a fairer economic paradigm. Only by prioritizing human well-being over profit margins can societies pave the way to a fairer and more sustainable future.

Summarize something
The dichotomy between India's economic growth narrative and its failure to provide basic social security, particularly pensions, highlights a fundamental flaw in the dominant economic model. However, this paradox also presents an opportunity for transformative change. By realigning priorities, redistributing resources and promoting inclusive social welfare policies such as universal pension systems, it is possible to bridge the gap between economic prosperity and social justice and usher in a new era of equitable growth and human flourishing.

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