What will happen if we take all of Ambani's wealth and give it to poor Indians?
It looks you are talking about the idea of equality, but the things which looks appealing by redistribution of wealth may not generate fruitful result. As :
- Shares in Stock exchange will fall suddenly even with such rumours.
- It will lower the entrepreneurship in Indian youth.
- MNCs will runaway from India.
- FDI in all sectors will fall.
- It will cause setback to Indian GDP as majority of Tax contribution comes from corporate sector.
- Innovation, scientific research will be lowered.
- Mass unemployment.
- Rise in Inflation rate.
- Banking sector will doom.
- Other big Industries or corporates like Tata’s, Birla’s, Mahendra’s may packup there business from India.
- Larges section of County may become again agrarian only.
- International image of India will be lowered and Credit rating agencies will give poor rating, our ranking in ease of doing business may fall which is still not that good.
- Redistribution means less investment to other sectors like education, power generation, medical etc. which is again harmful.
- Meritocracy of people may get reduce.
- World bank, IMF may treat India as only socialist nation and can create roadblocks in terms of loans for development.
If we analyse carefully it's not only against the market principles but also against principle of governance in a developing economy. If amabni’s are generating wealth then they are also Paying Tax, contributing CSR and playing major role in India's development.
If only consideration is about to make everyone with equal Income then other factors can be considered.
- Progressive Tax structure.
- Raise CSR contribution.
- Universal basic Income.
- Increase social sector schemes by Government.
- Reduce corruption, increase transparency and provide Good governance to citizens.
Therefore Redistribution of wealth is not possible in this context and it's a vague concept.
