Saturday, May 2, 2009

The Distribution Of Wealth IV: Growth

The distribution of wealth can have a profound impact on the nature of future economic growth.

Just as the nature of past economic growth will have a profound impact on the distribution of growth.

Growth depends on a balance between investment and consumption.

The peculiarity of the main global economic system is that there is a constant need for investment in order for the economy to grow.

Economic growth stops the moment there is a hiccup in investment - and the economy will then go into a downward spiral.

To ensure sustainable growth, there must be persistent investment. This means that the economy must rise above subsistence in order to have the capacity to save and investment.

The only way to rise above subsistence throughout the economy is for investment to take place in knowledge and thinking.

People must know how to think for themselves.

Let there be no ignorant for the ruthless to exploit.

This means that the distribution of wealth over time should be focus more on the professional class. There should be no elite and the unfortunate lower group should be assisted with a social safety net.

If growth of the economy has traditionally been based on the exploitation of natural resources or the use of low wage unskilled workers, the distribution of wealth will be skewed to the top elite.

Growth, in this case, will be reflected in poorly designed industries.

There will be haphazard expansion, with a small urban centre and a sprawling low-cost housing.

There will be traffic jam because of the long distances the poor has to travel in poor modes of private transportation.

Public transportation would be inadequate and cramped.

A rich society must necessarily be well-designed and clean, with a healthy society with people are intelligent and optimistic.

They keep living in the present and invest in the future.

The well-being of the whole society will be the contribution of every able individuals.

There will be no strong personality who preach strong leadership.

It will be a society governed by the people for each other.


pywong said...

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walla said...

etheorist said...


Thank you for your offer...

walla too - that was sometime ago, if my memory serves me right.

Just to let you guys know that I have noted.

Thanks for coming to my blog. I am happy just to share.