The potential between “rich and poor”

Even if the companies are apparently healthy, they are preparing for worse commercial operations. The debt problems in some euro countries are increasingly restraining the further economic development. In 2011 the trade cycle was supported by the enormous exports and rising domestic economic activity. In the next months will be expected that due to the debt crisis in Europe, the export will run slower. In contrast, the high domestic demand, which is expected, should contribute to avoid the decline of the economic activity. Due to the engines and machines, which are partly replacing the human being in the chain of economic value added, in the industrial society, we do not feel and recognize the daily amount of labour input any more.

Countries and societies, which do not own the necessary know-how and are not liquid enough to buy these growing and increasingly complex machines to install them into their value-added chain, are losing ground compared to the industrial nations respectively the Group of Seven. Furthermore they are losing continuously the base of their livelihood. That leads inevitably to migrations towards the “rich” countries and societies. The potential between “rich and poor” keeps the damaging process going and speeds it also up. This causes as well further mobility as movements and domicile changes up to growing migrations.

According to the International Labour Organization – report, the gap between the rich and the poor is increasing perpetually. They say that half of the workers around the world are poor workers and are excluded in relation to the society and economy from the globalization. Thus, the actual earnings of unqualified workers in the African and Latin American Industry were deepened during the last years.

Since almost 30 percent of all workers in the world – in numbers more than 900 million employees – had to live with their families below the US $2 poverty line in 2011. Another terrifying aspect is that half of these 900 million workers have to live below the US $1.25 extreme poverty line. In contrast the rate of employment and the salaries in the processing trade in nowadays economically successful countries such as China, India and Malaysia were rising.

In spite of the rapid recovery of the global economy, the unemployment rate is still at a global high. The number of employed people rose only minimally, compared to the last years of the crisis. Therefore there should be still more than 200 million unemployed in the world. Especially the industrial countries are suffering from the crisis. During the economic slump between 2007 and 2010 the average unemployed rate rose from 5.8 up to 8.8 percent. The International Labour Organization warns that the states should not neglect the establishment of new jobs, although the main focus should be on the debt reduction. However the Director-General of the ILO made a good point: “There can’t be a sustainable economic recovery without a recovery in the labour markets.”



4 thoughts on “The potential between “rich and poor”

  1. I guess unemployment under 10% is healthy for business. Everyone should know that they are replaceable, definitely not untouchable. So people who know what they are capable of, they are “rich”. People that don’t, well they are “poor”. But on the other site, this is well known and discussed topic cross the whole world. It’s a huge difference between, I don’t know, China and Brazil. Totally different countries, different continents, different mental powers. So I guess that the government shouldn’t be told what to do and just do up to their situation.

  2. In my opinion, the last sentence of the blog entry, hits the issue perfectly. The real problem of the whole dilemma is that we have choosen so a wrong track in the capitalist consumer society. that it only comes to retract maximum profits. The big companies take a too short look into the future and ignore the problems that lead to a short-sighted view just to yield the maximum profit. Similarl to the yield of raw materials, especialy not-renewable energies. If we are finally won´t start creating long-term jobs and tackle the problem from the ground up, this vicious circle of the crisis and the growth between rich and poor will even increase in the futur.

  3. Further jobs can be created with economic growth. Besides, the crisis in Europe shows strong effects on the people because they are used to a certain economic standard. If the economy hits rock bottom, the people suffer from its consequences a lot.
    I don’t believe that the crisis is based on the labor markets. But it definitely is a vicious cycle. One problem leads to the next and so on. How to get out of it is difficult but approaches need to be made in the financial market. More policies and more regulations are needed.
    Capitalism or the free market economy always worked (more or less successful). The problem is what happened in the last decades: globalization plays a bigger role in the economy and at the same time the financial markets grew immensely, so that their role became bigger and bigger. As big, so that it is responsible for the world economic crisis. We need changes in our system – for sure! Because if the politics are not changing anything there will be another crisis in 20 years and another in 40 years. And with every crisis the politics will become less and less powerful to improve the situation.


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