nitePhyyre wrote:There exists about $6000 per person in the world. Considering that globalization is doing nothing to get rid of an upper wealth class, the money for the common man is going to be even less. So the options are:
1) Return China and India to destitution
2) Return everyone to destitution
3) Increase the size of the world economy by several orders of magnitude
4) Slaughter several orders of magnitude worth's of the world's population.
#1 is probably the easiest, although the required protectionism might lead to war. And therefore #4. #2 seems to be what path we are currently on. #3 is our best bet, but doing so will probably destroy the environment, also leading to war and #4.
I guess, what I'm saying is, we need a mass exodus to the cosmos or we are all pretty fucked. A sterility causing plague will also be acceptable.
Actually, 1) is a viable solution. The main reason why most "developing" countries are destitute in the first place is that global economy hinders their economic growth. The main effect that comes to play here (and that has been described by economists as early as in the 19th century) is the following:
If there are two countries, one strong industrial nation A and one weak developing country B, things may look like this before these countries start trading:
A: Is producing large amounts of finished goods at low labor input per good, the production only being limited by a lack of resources.
B: Is producing small amounts of finished goods at high labor input per good, the production being limited by low technology and therefore slow and ineffective production of not only finished goods, but also raw materials.
Now, A and B open their borders for international trade. Given both of them are free market economies, what happens? Well, the first and very immediate effect is that the small amount of businesses B has that are producing finished goods almost immediately go bankrupt. This makes sense when you consider that the costs to produce a single good are significantly lower with higher technology, which means that A's goods are cheaper than B's goods and B's companies are therefore pricing themselves out involuntarily. So B's production is down now and its capital will therefore soon be depleted. Yet the people in country B have to survive somehow, and because they have nothing else to sell, they sell their natural resources which still make an acceptable price given that A has a lack of them. However, the amount of money they make that way is just as much as they need to buy the most basic soft goods (clothes etc.) from A. So essentially, they are selling resources to A so that A can turn a small cut of them into clothes, keeping all the rest! This gets even worse when A starts to build factories in country B, because as the capital these factories are built with comes from A, A rakes in all the profits.
So, that's essentially what's going on in the world right now, much impelled by organizations like the WTO or the IMF. The reason the Chinese are growing so rapidly is that have kept their borders closed for a long time and even today are still regulating their economy and especially their external trade heavily. The others mostly stand no chance because the principles in play re pretty much a doom loop: more external trade makes the country poorer, making it rely on external help more, making it open itself more for external trade.
tl;dr: Letting China and India fall to destitution would in the long run actually help them because money is always falling upwards.