A recent LinkedIn post by a Bengaluru CEO has sparked a significant debate across social media, drawing attention to what he terms the “silent crisis” quietly afflicting India’s middle class. The post, which quickly went viral, highlights the growing disparity between stagnant salaries and soaring expenses, leaving this demographic to absorb economic shocks without public outcry or government intervention.
The “Well-Dressed Decline”
Ashish Singhal, the CEO in question, articulated a stark economic reality in his post: “The biggest scam no one talks about? Middle-class salaries.” He pointed out that over the past decade, income growth for those earning under Rs 5 lakh saw a mere 4% Compound Annual Growth Rate (CAGR), while the Rs 5 lakh to Rs 1 crore income group experienced an even more meager 0.4% CAGR. In stark contrast, food prices have reportedly surged by nearly 80%, effectively halving purchasing power. Yet, spending continues to rise, largely fueled by credit.
Singhal described this as “a well-dressed decline,” where individuals maintain a semblance of their desired lifestyle – flying occasionally, buying new phones, and paying EMIs – but often at the cost of crucial financial stability. He lamented that achieving this lifestyle increasingly means “skipping the savings” or “delaying doctor visits,” while technologies like AI have seen sevenfold growth in the same period. “The rich are scaling. The middle class is just expected to absorb the shock, in silence. No complaints. No bailouts. Just inflation, EMIs, and quiet pressure,” Singhal expressed.
Social Media Reacts: Blame, Guilt, and Cynicism
The CEO’s observations resonated widely, prompting a flurry of reactions on social media. One founder acknowledged, “I am picking this signal consistently from a wide variety of sources. The middle class is quietly getting squeezed from both sides.” However, they also placed some onus on the middle class itself, stating, “it’s also its own fault for choosing to stay quiet and naively hoping that just staying the course of 9 to 9 jobs, home loans and car loans will improve the situation.” This commentator suggested that “being excessively conforming and hard working – has led to being stuck between the devil and the deep sea.”
Another CEO’s response, however, introduced a critical counterpoint, questioning Singhal directly: “Good one. But, as CEO, what was the pay rise you gave to your employees vis-a-vis yours? That should be interesting to know.” This comment highlighted the internal dynamics within companies and the potential for hypocrisy.
Adding a layer of cynicism, an individual commenter remarked, “Crying on any platform won’t make any difference. India was moving on like this and will continue like this. Nothing’s gonna change here.” This individual expressed disillusionment with the system, suggesting that “Even after so much tax, there is nothing in return. Whoever can and gets the opportunity, just leaves the country, that’s it. But again, salary alone can’t make anyone wealthy anywhere in the world.”