The Impact Of Corona Virus On Middle Class!

The Impact Of Corona Virus On Middle Class!

It’s more than one year of first Corona+ case in our country. Then comes the lockdowns and restrictions. Do you know, how it effected Middle class and Lower class population? Around 3.2 Crore people have already been out of Middle class category to Lower class. And this data is only of 2020, 2021 is also not going easy on them. It will take around 10 years for poorer section to recover from the loss during pandemic.

Source – livemint.com

We already know that Corona made Rich people richer and poor people poorer. Many Billionaires had their wealth increase in Billions during the pandemic. On the other hand, poor people didn’t have proper food for two times. But let’s know about how corona, silently impacted Middle Class!

The Crushing Impact on Middle Class!

On one hand, rich became richer, on the other, Middle class lost their wealth. Around 3.2 Crore middle people now come under poor class category as of 2020. Also, Corona made 7.5 Crore people come under below poverty line. According to data, the decrease in number of middle class has happened for first time since 1990 in the whole world.

India contributed most to decreasing number of middle class. It accounts for 60% of the global contraction. The 3.2 Crore people are not able to earn $10.01 a day, which is lowest income to be in middle class category. On the other hand, China, origin country of Corona, had 1 Crore people pushed out of Middle class category. Still it’s numbers are better than India.

Source- pewresearch.org

The reason behind such bad numbers of India is not just Covid but also worst situation of economy of country. Also, at that time India was going through 45 year high unemployment rate.

Covid just pushed more to worst situation of economy and now it is becoming very difficult for country to come back on track.

Data on People Below poverty line – From 2011 to 2019, the number of people below poverty line had came down to 8 crore from 34 crore. But due to Corona and bad economy situation, around 7.5 Crore more people came back in claws of below poverty line. Simply, Corona just doubled the number of poor class in our country.

Financial Aid In Other Countries!

In America, Canada, Germany, Japan, South Korea etc., Government came to the rescue of middle class. They rescued middle class by providing them, financial aid. In Germany, government announced $868 Billion aid package for people to prevent mass layoffs, insolvencies and to control poverty. In these countries, people received direct financial aid up to $1000.

But in India, no such plan was there. Yes. government announced β‚Ή20 lakh crore package but there was no direct benefit to middle class ad lower class people. As, second wave is here, government should announce such direct financial aids to support people.

Conclusion

Surely, Corona had impacted Middle class very badly in 2020, but now 2021, it is not backing down. Day by day, cases are increasing and India has become second most effected country. Second wave is spreading at much faster rates than first wave. Now, governments should think about containing the spread of corona without affecting the livelihoods of Middle class, as it will just put more burden on economy and will make situation worse.

Thank you for reading!

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