Home > Business-Economy, Current Affairs, Living > Getting to the root of world’s real problem – Global poverty (Part 2 of 3)

Getting to the root of world’s real problem – Global poverty (Part 2 of 3)

Continuing from my previous post, I hope we all recognize that “poverty” is a real problem and a flagrant violation of fundamental rights of many of our fellow mankind.

Now, what is the current system doing to exacerbate this problem? Let’s apply different lenses…

1. Everyone in the multinational forums talks about reducing poverty by 50% by 2020… So, does it mean that millions of people (just 300 children die of hunger every hour) are destined to die of hunger since we cannot solve the problem soon enough. Nothing more to be said on this…

2. Capitalism… it’s just a virtual economy with no “real economy” fundamentals
_ Dollar and the gold –> Back in the times, currency was tied to the dollar to ensure that we don’t over-inflate our wealth by just printing money. Now, that this linkage is gone, value of currency paper can be set by the whims of people in power. Just the other day, I was trying to do simple math that if an economy had real wealth of $1 trillion and is spending $1 million every day, it would take them ~2,700 years to exhaust just that $1 trillion.
_ Regulations –> Society has become more individualistic where rules have been changed as deemed fit for certain section of the society to remove all regulations and allow individuals to hoard wealth thereby taking it out of circulation. The power of a real economy is in the continuous circulation of wealth to allow for an equitable wealth distribution.
_ Stock inflation –> Just because some analysts/ investors forecast great returns (remember, nothing is predictable), the stock price shoots through the roof… take some of the recent IPOs for example. There is no real alignment with what happens on the ground.
_ Usury explosion –> In my opinion, this is at the core of this economic system menace… people with more wealth are able to rip off the not-so-privileged by lending money at unfair terms (high interest rates) which means a common man borrowing will have to pay more to afford the same kind of goods/ services.

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