3 June 2024

GS 1: Geography – Important Geophysical phenomena – Volcanic activity

Impact of volcanic eruption on surrounding environment :

• Air Quality: Volcanic eruptions release gases, ash, and particulate matter into the atmosphere, impacting air quality and visibility.
• Climate Change: Volcanic gases, particularly sulphur dioxide, can contribute to short-term cooling by reflecting sunlight, but long-term effects depend on the eruption’s scale and duration.
• Health Risks: Ashfall and volcanic gases pose health risks to humans and animals, causing respiratory issues, eye irritation, and skin problems.
• Ecosystem Damage: Volcanic ash can smother vegetation, disrupt ecosystems, and contaminate water sources, affecting biodiversity and agriculture.
• Infrastructure Damage: Ash deposition can damage buildings, roads, and infrastructure, leading to economic losses and disruption of services.
• Lahars and Flooding: Volcanic eruptions can trigger lahars (mudflows) and flooding, posing additional hazards to communities downstream.
• Tourism and Economy: Volcanic eruptions can impact tourism and local economies, affecting livelihoods and businesses dependent on the affected area.
• Long-term Recovery: Recovery from volcanic eruptions involves cleanup, rebuilding infrastructure, and rehabilitation of ecosystems, which can take years or decades.

Highlights:

Inequality in Modern India:

• Rahul Gandhi and Narendra Modi’s recent statements have reignited discussions on inequality in India.
• Researchers from the Paris School of Economics have highlighted that modern India exhibits greater inequality than during colonial times.

Debate on Inequality:

Negative Economic Effects of Inequality:

• Concentration of monopoly power among capitalists can result in negative effects on consumption, welfare, and growth.
• Monopolies lead to higher mark-ups and prices, reducing real wages and purchasing power, ultimately resulting in lower levels of output and investment.

Impact of Inequality on Growth:

• In economies with monopolies, higher prices and mark-ups lead to lower real wages and consumption, weakening the multiplier effect of investment on income growth.
• Unequal distribution of income reduces consumption power, hindering the expansion of the economy.

Redistribution and its Effects:

• Some argue that redistribution measures may deter entrepreneurs due to reduced incentives for wealth accumulation and investment.
• However, taxing wealth does not necessarily affect investment, as it depends on future profit expectations rather than accumulated wealth.
• Redistribution can strengthen the multiplier effect by increasing purchasing power and incentivizing investment in regions with strong demand.

Thomas Piketty’s Proposal:

• Thomas Piketty’s suggestion of taxing billionaire wealth and implementing basic income could encourage entrepreneurship and innovation.
• Redistribution, when used in conjunction with other policy measures, can lead to a healthier economy by curbing inequality.

Conclusion:

• While redistribution may face opposition, it can bolster economic growth by enhancing purchasing power and incentivizing investment.
• A balanced approach to curbing inequality through redistribution, along with other policy measures, is essential for fostering a more equitable and prosperous economy.