With reference to the above passage, the following assumptions have been made: Corporate capitalism promotes the growth of labour force and provides more employment opportunities. Poor and marginalized sections of population are benefited by corporate capitalism due to trickle-down effect. Which of the above assumptions is/are valid?

Q 41 / 466

UPSC CSE Prelims 2025

With reference to the above passage, the following assumptions have been made:

Corporate capitalism promotes the growth of labour force and provides more employment opportunities.
Poor and marginalized sections of population are benefited by corporate capitalism due to trickle-down effect.

Which of the above assumptions is/are valid?

Both Statement I and Statement II are valid assumptions based on the provided passage.

Statement I is valid: The passage explicitly states that corporate capitalism "generates jobs" and is essential for resolving unemployment. This directly supports the assumption that it fosters labour force growth and creates employment opportunities.
Statement II is valid: The passage asserts that capitalism "leads to additional revenues for the State," which can subsequently be utilized for "greater welfare for the marginalized." This mechanism implies a trickle-down effect, where economic benefits are mediated through state redistribution to benefit poorer and marginalized populations.

Option 1 (I only): This option is incorrect because Statement II is also supported by the passage's explanation of state revenue utilization for marginalized welfare.
Option 2 (II only): This option is incorrect because Statement I is also directly supported by the passage's reference to job creation and its role in addressing unemployment.
Option 4 (Neither I nor II): This option is incorrect as both Statement I and Statement II are substantiated by the passage's content.