Reducing Rentals

Problem statement: Middle to lower class people lack purchasing power and the disparity of income is very high. This does not allow common people to get good quality education, healthcare, food, clothing, and shelter. With the current model, rich is becoming richer and not allowing lower-income groups to grow, who are working hard. Even if the person earns 30k INR per month, ~30% of it goes into rentals, schooling, interest/loan payments. In India, around 80% of families do not earn more than 30k per month. People who earn more than 30k are also not able to afford homes, due to unstable income and lack of savings.

Root-causes Reduction in interest rates is increasing inflation and helping the rich and impacting the poor people. High taxation is also helping again the poor people and the collected tax does not help the poor people, to get all the facilities for which the businesses or rich people pay. People are becoming more greedy to hoard more wealth and are investing in land and properties to get big returns. This has increased the real estate rates and rentals also. Even in developed countries, a lower interest rate is not helping common person to get their own house and is making the rich richer. High rentals - give undue advantage to people who can

Everyone knows that the person who has got rental income has got excess property and is impacting society at large. If we collect the data of people who are earning from rentals, it will be around ~10% of the population.

Bringing down rentals is the need and everyone instead of donating or doing social service - everyone should look at reducing rentals by 75%. This will boost purchasing power and help new businesses to grow and provide more employment opportunities automatically. Just reducing rentals will infuse the purchasing power of more than 60lakh crores every year in India and reduce the infra/housing/commercial interest rates by 40% from 7% to 4.2%. This will make the banks to reduce interest rates on already existing committed fixed deposits by 20%. This will help the government also to save huge money for paying interest(reduction of 20% interest) to the public on loans and fasten the repayment of public debt. RBI can reduce the Repo rate by 50% from 4% to 2%. All these restructurings will set an example in the world, how a country can fight with natural calamities by staying united.