Monday 6 May 2013

Warning: Economic Growth May Lead To Poverty

If you make a chair and you sell it outside the economy of your nation state, the economy of your nation state becomes richer. If you sell the chair within your nation state the economy of your nation state will become richer too. There will be more chairs.
If you sell a service beyond the boundaries of your nation state then the economy of your nation state becomes richer, just as if you sold something more tangible.
However, if you sell a service within the boundaries of your nation state the economy will grow, and people may be richer, or they may not.
If the service is cooking meals for the elderly, then clearly the elderly benefit and they are ‘richer’.
However, if the service is a form that the elderly have to fill in, stating their racial characteristics and their sexual orientation there will be no benefit to the elderly person. Their productive time and their ink has been wasted. Someone has been paid to produce the useless forms and to process them.
Power has been centralised, but the elderly and the rest of us are poorer.
Money has been exchanged, economic activity has increased, but our time and energy has been wasted.
And so, with the obvious exception of the arms trade, manufacturing increases prosperity, whereas services may increase prosperity, but likely as not will not.
An economy such as ours which is primarily a service economy grows through internal colonisation, through increased centralisation and regulation of power, by the monetarisation of all activity.
For example, these days there are many sports activities organised for young children, such as football, where they have all the equipment and adults are present to supervise them. The adults are paid to supervise, and have been vetted by other adults who have been paid to check on them.
Yet fewer little boys are to be found playing football than fifty years ago, when they would play out, and make a couple of goalposts with their jumpers. This free activity is largely prohibited. Unsupervised, children are 'nuisances'. They are kept indoors because of the danger of cars, the perceived danger from paedophiles, and  primary school homework (which did not exist fifty years ago)
There is vastly more economic activity, but less human activity.

Paying the Gatekeeper increases economic activity but decreases prosperity. 

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