Making our economy ‘more human’ may be utopian, but it’s also necessary

(From the May-June 2017 issue of Atlantic Business Magazine)

If you do a quick Google search of the following starkly precise sentence, “Eight men now own the same amount of wealth as the poorest half of the world”—955 results will pop up on your computer screen in .63 Google seconds.

That single incendiary sentence shows up in news stories from Australia’s Sydney Morning Herald to Canada’s National Post to India’s The Hindu Business Line. It appears on blogs as diverse as Trade Arabia Business News Information and the American League of Young Communists. Not to mention fueling discussions in university seminar rooms and around office watercoolers everywhere.

The sentence, which appeared in An Economy for the 99%, a February 2017 briefing paper prepared by Oxfam, the respected “international confederation of charitable organizations focused on the alleviation of global poverty,” was intended to provoke a response. And it certainly did.

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But it would be a shame if conversation about this deeply researched, carefully constructed 48-page report (with its 276 footnotes!) stopped with that single sentence.

For starters, the report contains plenty of other show-stopping, equally discussion-worthy non-alternative facts.

It notes that Apple, which is “plagued by reports of exhausted workers in China working 12-hour shifts in punitive conditions to produce iPhones and iPads,” has managed to shovel three quarters of its iPhone revenues into corporate profits. Speaking of which, Apple is alleged to have paid 0.0005 per cent taxes on its European profits in 2014.

The report also states that, through their suppliers, some of the U.K.’s “most profitable corporations” pay poverty wages to workers in Malawi, Vietnam and Kenya. Oxfam calculated Kenyan flower workers’ wages would double if companies tacked roughly eight cents on to the price of a $6.50 CDN bunch of roses.

Further, 21-million forced labourers, mainly girls and women, generate an estimated $150 billion in corporate profits worldwide each year.

According to Oxfam’s research, “one-third of the world’s billionaire wealth is derived from inherited wealth, while 43 per cent can be linked to cronyism.” Over the next 20 years, 500 of those very rich people will pass along $2.1 trillion to their heirs, a sum larger than the GDP of India, goosing global inequality even more.

The world’s 10 biggest corporations—Wal-Mart, Shell, Apple et al—boast combined annual revenues greater than the revenues of the 180 “poorest” countries, also combined. The list of those “poor” countries, you may be surprised to learn, includes Ireland, Indonesia, Israel, Colombia, Greece, South Africa, Iraq and Vietnam.

In Vietnam, the country’s richest man earns more in one day than its poorest citizen earns in 10 years.

Whew…

But that’s just the backdrop for the Oxfam report’s positive vision for the future. “Accountable and visionary governments, businesses that work in the interests of workers and producers, a valued environment, women’s rights and a strong system of fair taxation, are central to [a] more human economy.”

Oxfam’s more “human economy” is underpinned by what it describes as: global cooperation “to make sure everyone pays their fair share of taxes and workers are fairly compensated;” governments that are accountable to all, “not a wealthy minority and their lobbyists;” “a vibrant and successful business sector… based on the vision of companies structured and incentivized to benefit society as a whole, not just wealthy shareholders;” and supported by technology harnessed “to transform our lives for the better;” energy sustainability; and gender equality.

That may seem hopelessly utopian. Perhaps it is.

But in an age of rampant and increasing global inequality, where shareholder profit has become more valued than societal sustainability, where “eight men now own the same amount of wealth as the poorest half of the world” and Donald Trump is in the White House, we could all use a little more utopianism, a little hope.

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Copyright 2017 Stephen Kimber, Website
  1. Interesting ….. yet a very complex assessment, first these billionaires are not the ones that control the world and we should not fear them but fear who they fear: ( Since I entered politics, I have chiefly had men’s views confided to me privately. Some of the biggest men in the United States, in the field of commerce and manufacture, are afraid of something. They know that there is a power somewhere so organised, so subtle, so watchful, so interlocked, so complete, so pervasive, that they better not speak above their breath when they speak in condemnation of it.
    – Woodrow Wilson, 28th President of the United States (1856-1924)
    History has proved time and time again the world’s elite are beyond money and hold power than can move mountains, start and stop wars and even elect none descript people to govern nations. Taxing the super wealthy may well fill the pockets of government only to picked by the same powers to be …. example a strong Conservative government pays down debt and new Liberal government promised to spend … and vice a versa ….. again taxpayers loose …. throw in a war like the worst military blunder in the history of the world (War in Iraq) and we are doomed for years to come.
    The rich do spend their money on multi million dollar, homes, vacations and toys employing millions of people ….. Yes it is true about cheap labour and not to be unkind slave labour and politicians continue to say and do nothing about …. years ago it was stated if the world’s rich just parted with mere 10% of their wealth not one person one earth would go hungry for the rest of their life. Never happen and they live by greed and enough is never enough ….
    All things said we all must agree their is and has been something wrong with the distribution of wealth for centuries ….. why so very few have so much we will never know.
    Post note:
    Soon there will be 8 billion people on the planet with less jobs than there are now and depression will be the # 1 disease as even a university degree can not find a job in a coffee shop …. daily life as we know it will change …. btw it already has.

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