VGPolyglot said:
bdbdbd said:
So, what is the system that promotes the economic competition? As far as I'm concerned, the economic system aims to increase (global) GNP, that in turn reduces poverty.
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It seeks to increase nominal GNP, not the median GNP, or an evenly distributed one. A few people making billions of dollars does not lift others out of poverty.
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What? That makes absolutely no sense. You clearly are opposing something you do not understand. People who make billions need to invest their money into something, and that something creates jobs and jobs create wealth. What the billionares own, are shares that have an imaginary value that's based on how they are respected on the market. You can't save money because inflation eats away the billionaires savings.
Equal distribution of wealth have no value by itself, as everyone can be piss-poor. What better welfare needs, is investments from people who have money to invest. Going a decade back, the main driver of global economy was investments that were made to China. In similar fashion there should be some driver (that has money to invest) in global economics to have GNP growing again.
What's causing today's financial problems is (loan) money that's leaving the market faster than there's new (loan) money coming on the market and inflation eating away the value of old debt.
Some food for thought: let's say a square meter in an appartment in Helsinki would be worth the same as square kilometer of desert in Africa, which would be more valuable, the the square meter or square kilometer? In the current financial atmosphere they'd be worth the same, but clearly how the real value should be calculated is much more complex than just to compare the monetary value.