Tuesday 6 August 2019

How Not to Fight Poverty

The problem here is that poor people are becoming dependent upon foreign exchange earned by exporting produce. Why? What is the real value of those Euros they earn? Those Euros have no real value at all. This is fake wealth being exchanged for real wealth, leaving the poor people with less. See Rutger Bregman on Poverty and Why Climate Scientists Shouldn't Set Policy.


This is the state of the global economy, and any strategy for fighting poverty that doesn't take the global economic outlook into account is simply not going to work.


Here is another example of the insanity of the global economy and how it systematically generates poverty ...


... and crime. Between 2015 and 2016 the amount of land used to grow coca for cocaine production in Colombia increased by 52%.


Thanks in no small part to the efforts of the Vatican


There are costs to the people who live fake lives on the basis of fake wealth, so the solution is to change both sides of this equation simultaneously:


The same sort of strategy can followed with any natural resource, such as lithium, for example:


We need to consider the more general question, of why we think a natural resource such as lithium has value at all. Here is a guy explaining why lithium has market value: basically because there was an electric car company that decided to double the world's consumption of lithium by building a huge lithium battery factory in the United States.


But why is that best use to which the limited supply of lithium in the world could be put? Why do we need portable batteries when almost every place we need electrical current is within a few feet of an electrical outlet? We only need batteries when we are far away from these places. Capacitors would be much better as power supplies for mobile devices.


The problem is caused by people who make excessive amounts of money and want things in which they can invest these excessive amounts of money, so that it holds its value. But that value is not anything real, without the belief of people with natural resources who think they need money more than they need the natural resources. The same forces are behind things like 5G, which nobody needs, or even wants.


The answer is to base economic value on actual knowledge of value, i.e. education. See Rutger Bregman on Poverty and Why Climate Scientists Shouldn't Set Policy.

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