19/01/2016

My thoughts on the headline: "Richest 62 people own as much wealth as half the world's population, says Oxfam" - by Jeff Fitchett

Capitalism, taxation, lack of health care and low wages are all areas of concern highlighted by Oxfam.  We no longer have pure capitalism. What we have instead is a corporatist model in which multinational corporations influence governments and dictate policies, laws, regulations and trade agreements that are detrimental for the average person.  Tax loopholes are a serious problem within the construct of our existing fiscal and monetary system.  The ultra rich, whom control the multinational corporations,  have the means and technical expertise to game the system for their benefit and avoid paying taxes while the majority of the population are confined to the system and are stuck "paying the bill" so to speak.  

We are witnessing the greatest transfer in wealth in human history.  The middle-class is now a minority in the US and I fully expect for the majority of people around the world to continue their descent into poverty. Globalization has been a beautiful thing for the powers that be as they are the ones who benefit. Governments throughout the world are fiscally unsustainable as funding costs to support governments far exceed what the average person can pay for via their private sector jobs.   

Healthcare, education and all the other departments within government are a burden for the average working person to support via taxation.  We all know that wages are dropping and not keeping up with true inflation.  We know that opportunities for job growth are disappearing at a rapid rate.  We know that debt has fuelled our way of life and we are now maxed out in debt. Economically we are now in decline. You can see this clearly by viewing the stock and bond market drops since August.  In 2016 so far, equity markets have had their worst start to a year ever.  

I read that in 2014 and in 2015, the US government passed over 80,000 laws and regulations in each of those two years.  Corporate lobbyists, in most cases, write or influence the laws that are put upon the masses.  You will more than likely hear that capitalism is the problem.  I can't be more clear on this point; capitalism is not the problem.  Small businesses and innovation are the lifeblood of all economies. Government policies, backed by the ultra-rich, are road blocks for small businesses to succeed.  

I believe we have passed the point of no return.  Theoretically, I know we could fix the problems we all face, but cognitive dissonance dominates the mindset of most people and that is why I believe we  will be forced to be reactive rather than proactive.  As the saying goes; "it's a recession when your neighbour loses his job, but it's a depression when you lose your job".  For the minority of people who "get it", all we can do is prepare for the structural changes that are sitting in front of us.  The average Joe can focus on becoming healthier, eliminate unnecessary expenses, downsize, grow their own food and become self-reliant.  There is no silver bullet solution that will eliminate the problems our global community faces, but the first task for everyone should be to understand that there is a problem and then work towards eliminating our dependence on the system.  




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