Monday, April 11, 2011

Inequality

Inequality leads to a lot of problems (source).
More unequal countries have:
  • worse physical health
  • worse mental health
  • more drug abuse
  • more school abandonment
  • more imprisonment
  • more obesity
  • less social mobility
  • less trust
  • more violence
  • more teenage births
It's ironical that the rich live with the fear of losing what they have, the fear of violence against them (for their money). The poor live with the uncertainty of tomorrow, if they will have the basic necessities of life.

10% of people own 85% of the world's wealth, so 90% of people own only 15% of the world's wealth. (source)

To only way to get rid of inequality is to get rid of money and property, because, if they exist, inevitably some people will have more than others.

A lot of people go on with their daily lives, shopping happily in malls, never thinking that there are people who are starving at that moment. Even people who care don't have real solutions to these problems.

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There are inequalities between countries too. I was reading one day how, on an island (Svalbard), there was a Russian mine and a Norwegian mine, only kilometers apart from each other and the Norwegian workers were earning ten times more than the Russian workers. The Russians were OK with this because they still earned more than they did at home.

In the current system, this inequality is normal. The inequalities between countries are normal and poor countries can't develop in this system.

A poor African country does not have the money to buy equipment to start modern agriculture. So, we are basing ourselves on foreign investment, which means that some very rich people have to go there, buy land and exploit it with modern means. This seems logical, right? Well, it's not. If someone did that, who would they sell the food to? The people from that country don't have the money to buy that food. The reason they don't have money is that they don't produce other things to trade for food (money is just a trading tool).

So, the rich guy can just export the food to other countries. This is not very efficient, because transportation is expensive and food can get spoiled. Not only is it not efficient but it's evil to export food from a starving country.

Primitive agriculture and industry can't compete with modern ones, so they just stagnate.

If we can't start with agriculture, maybe we can start with modern industry in poor countries. This has been done a lot. China and India are good examples. Factories have been built there because the workforce is cheap and qualified. In Africa people are not educated and are not qualified to work in factories. A lot of them can't even read. So, we need to educate them first, before we can employ them but if they are qualified and there are no factories there, it's still in vain.

So, in the current system, I see no solution for them. If you can't make money from improving the world, the world will not be improved. This is the current system.

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