Wealth Inequality

[Shaul]

https://www.hoover.org/research/income-inequality-isnt-problem

 

[epronovost]

Why do you think Eritrea is a Capitalist country? According to the CIA it is a command economy controlled by a single Party. Just like in North Korea.
https://www.cia.gov/the-world-factbook/countries/eritrea/#economy

I would say it's rather inaccurate. There are several foreign company, mostly based in Canada, the largest being Nevsun Resources, which exploits gold and copper mines in Eritrea. That would be completely impossible in a command economy. There is also something like 2000 small manufacturing companies producing a pittance of products mostly salt, cheap textile and cement. Though the country is being managed is if it was in constant state of war which means the government does have enormous control of various sector of the economy. Of course over 70% of the population work in agriculture in small family farms that serve for subsistence and not for commercial purpose. The country is desperately, depressingly poor and its government as cruel as its tyrannical and incompetent.

Economy of Eritrea - Wikipedia

 

[Shaul]

I would say it's rather inaccurate. There are several foreign company, mostly based in Canada, the largest being Nevsun Resources, which exploits gold and copper mines in Eritrea. That would be completely impossible in a command economy. There is also something like 2000 small manufacturing companies producing a pittance of products mostly salt, cheap textile and cement. Though the country is being managed is if it was in constant state of war which means the government does have enormous control of various sector of the economy. Of course over 70% of the population work in agriculture in small family farms that serve for subsistence and not for commercial purpose. The country is desperately, depressingly poor and its government as cruel as its tyrannical and incompetent.

Economy of Eritrea - Wikipedia

Sorry but I don’t follow that. More market driven economies (such as Canada) routinely invest in other countries whether the target country is central command controlled (such as Eritrea) or not. It is not only not “impossible” it is quite likely. Any market driven economy that would ignore all command driven economic states would be at a disadvantage to others that don’t.

I still disagree with your original position. Eritrea is not a Capitalist (market driven) economy. It is a centrally controlled one.

 

[epronovost]

I still disagree with your original position. Eritrea is not a Capitalist (market driven) economy. It is a centrally controlled one.

How can it be centrally controlled if it contains 2000 privately owned companies, foreign exploitation mining consortiums and a the vast majority of people live off their own private farm to avoid starvation? That's not centrally planned at all. A central planning system would require the mandatory creation of agricultural cooperatives with mandatory quota of production and fixed prices. There would not be privately owned companies in manufacturing and a State would certainly not let foreign company own and exploit strategic resources like precious metals. That's the very last thing a centrally controlled State economy would allow.

 

[Shaul]

How can it be centrally controlled if it contains 2000 privately owned companies, foreign exploitation mining consortiums and a the vast majority of people live off their own private farm to avoid starvation? That's not centrally planned at all. A central planning system would require the mandatory creation of agricultural cooperatives with mandatory quota of production and fixed prices. There would not be privately owned companies in manufacturing and a State would certainly not let foreign company own and exploit strategic resources like precious metals. That's the very last thing a centrally controlled State economy would allow.

Eritrea is certainly a centrally controlled economy. All land is State owned. All banks and financial institutions are State owned. Whether there are nominally “privately owned” companies is not a proof its economy is not centrally controlled. Any “privately owned” company only operates at the pleasure of the government and their assets are subject to confiscation. Furthermore those companies must operate under extensive regulation and other controls.

Both the CIA and the State Department identify Eritrea as having a centrally controlled economy. It ranks 173 for economic freedom among all countries according to the Heritage Foundation.
Eritrea Economy: Population, GDP, Inflation, Business, Trade, FDI, Corruption

 

[Stevicus]

Eritrea is certainly a centrally controlled economy. All land is State owned. All banks and financial institutions are State owned. Whether there are nominally “privately owned” companies is not a proof its economy is not centrally controlled. Any “privately owned” company only operates at the pleasure of the government and their assets are subject to confiscation. Furthermore those companies must operate under extensive regulation and other controls.

Both the CIA and the State Department identify Eritrea as having a centrally controlled economy. It ranks 173 for economic freedom among all countries according to the Heritage Foundation.
Eritrea Economy: Population, GDP, Inflation, Business, Trade, FDI, Corruption

I did some looking up on Eritrea, and it's true that they are an abomination in the area of human rights: Eritrea: Freedom in the World 2020 Country Report | Freedom House

Overview

Eritrea is a militarized authoritarian state that has not held a national election since independence from Ethiopia in 1993. The People’s Front for Democracy and Justice (PFDJ), headed by President Isaias Afwerki, is the sole political party. Arbitrary detention is commonplace, and citizens are required to perform national service, often for their entire working lives. The government shut down all independent media in 2001.

Key Developments in 2019

• Eritrean authorities closed the border’s country with Ethiopia in April. Eritreans crossed the border, which was previously opened in 2018, to seek asylum or refuge elsewhere, and continued to do so after the government’s decision.
• The government continued to interfere in the activities of religious groups during the year. In June, it closed health facilities operated by the Roman Catholic Church, after bishops called for the creation of a truth and reconciliation commission; that same month, the government reportedly arrested five Orthodox Christian priests for criticizing government interference in their church.
• The authorities also continued moves to restrict academic freedom. Seven secondary schools operated by religious organizations were seized by security forces in September.

It seems their main ideological focus is militaristic nationalism, although in practice it appears to have become their president's own personal kingdom.

I also looked up the ruling political party: People's Front for Democracy and Justice - Wikipedia

They are described as left-wing nationalists, although it appears they support a mixed economy, operating with a basically market economy with some socialistic elements.

Second, priority is given to the establishment of an economic system which satisfies the desires of the majority and improves their living conditions, ensures equitable development, operates through a market economy, encourages private investment, initiative and competition and guarantees balanced economic growth. In short, the economic system must enhance social justice for all.[19]

Third, the PFDJ introduces socialist elements, defining social justice as the condition which allows: 1) the narrowing of the gap in economic opportunities and wealth between the rich and the poor to ensure equitable distribution of national wealth among all citizens; as well as 2) the narrowing of the development gap as between the rural and urban areas, and as between the center and periphery. Thus ensuring the balanced and fair distribution of economic development in the whole country.

But the Freedom House link mentioned that corruption is rife within the country, and the government seems to be built on personalizing the power of the same president they've had since 1993 when they gained independence from Ethiopia: Isaias Afwerki - Wikipedia

 

[Bird123]

Jeff Bezos doesn't. We had that already.

There are a lot of robots that took persons workplaces. They made those in the 18th century. People found other jobs. But the next generation of robots will be able to take almost any job and then nobody will have any money to buy the things those robots produce.

Let's look positive instead of negative. When the robots get here money will become obsolete. You just put in your order and the robots make for you.

 

[Bird123]

Depend of which free country you are talking about. The USSR standards of living were better than those of Mexico during the same era for example. Unless by "free country" you only mean Western European former superpowers, the US, Canada, New Zealand and Australia. We can compare oranges to apples all day long. The USSR system certainly worked in many regard and failed in many others. It's greatest failure was its over-centralization and its incredible amount of wasted resources on a completely bloated military instead of civilian product.



Yet North Korean are less hungry than Eritreans or Central Africans yet those two country are capitalist countries. It's always a bit funny when someone compares an impoverished country to a wealthy one and thank their current economical system for those results as if the wealthiest and most developed country on Earth today aren't practically the same as those of the late 17th century, well before capitalism as we knew it appeared or socialism got its first attempts. Unfortunately for "Sunday morning" economists and historians, what makes a country prosper and gain in strength is extremely complex and will vary depending on circumstances and sometime to a fair amount of luck.

In the Big picture, God created this world so Brains win in the end. Sure it's hard to get an economy going when one is fighting just to survive. On the other hand, Global communications and access increases every day. Access to knowledge creates growth on a grand scale.

Build a better mousetrap and you will win regardless of those around you. Mr. Bezos did just that. Amazon must be helping an awful lot of people or their business would die.

As far as Mr. Bezos and philanthropy, you have no idea what goes on behind the scenes. Bill Gates and his ex-wife have spent billions on good causes. They have gotten money from other wealthy people in their causes. Do you really have any idea what Mr. Bezos does or do you just look at his net worth?

In your defense, If I had what the super wealthy have, I probably would not buy mansions and cars. I would just help the world.

Life is about learning and growing as people. Challenges and adversity point the direction and supplies so much knowledge, learning, and growing along the journey to discover the fixes, the answers, and the resolution. God's goal is different than mankind's goal. People want everyone to have it made. God wants to educate us all.

Jealousy over other's wealth or possessions is one of the petty things mankind holds so dear. Where has it really gotten you?? Let it go!!

Oh yes, there are two ways to make a rich man. 1. Get lots of money. 2. Have few wants. Perhaps, this is a lesson many need to learn. Perhaps, the driving need for so many possessions that really mean very little, will never lead to happiness. The possessions are not the important things. I choose few wants.

In my younger day, I had a friend with 5 kids. I was always on his case to be more conservative. He finally told me: If God wants the kids on Earth God has to find a way to feed them. This is a very good point. I have found that when I absolutely and positively needed help, help showed up.

This doesn't mean one should not try to help the world. Helping defines who one is. It comes down to how one wants to define themselves. On the other hand, trying to force others to define themselves as one wishes is another petty thing mankind holds so dear. This will never be a step forward.

That's what I see. It's very clear!!

 

[Heyo]

Let's look positive instead of negative. When the robots get here money will become obsolete. You just put in your order and the robots make for you.

"Tea. Earl Grey. Hot." Yes, that is the ideal of the post-scarcity civilisation. We are not there yet but we are immensely rich as a civilization and even more so in the developed west and not a small part of that wealth is because of robots. While we can't have every wish fulfilled, we should be at least able to guarantee enough food, shelter and healthcare for everyone.
I fear that when the robots get here only the rich will have them. Unless we change as societies. And that change should be at least as fast as the technical changes.
A UBI tomorrow guarantees a smooth transition to the robot utopia the day after tomorrow..