An Exploration of Key Topics Shaping the Future.

The G20 outcome, a plan to make the earth a worse place?

The recent G20 wrapped up with a commitment to target economic growth level for the G20 of 2.1% by 2018.

Global population grwoth is over 1.1% so this means the worlds richest countries will be getting richer by just over 1% avove population increase per annum by 2018.  Is there any suggestion that this addional wealth to the richest will be distributed to the poorer? No.

In fact there is not really a plan to have this additional wealth distributed internally in each rich nation.  For reference, see this bloomberg article:

In other words, most of the 2.2% over the entire economy will be distributed to the richest 20% (5% in the article, but lets be conservative any allow for things to get radically better) leaving significantly less than 1/4 of the amount to provide growth for most people.

In other words, the net wealth of most people in G20 nations will decline within the target period, but the rich will make real gains.

Of course the G20 is a meeting of governements, and governments tax the entire population so they WILL get 2.1% increase. In fact, the more the increase wealth is skewed to be earned by the rich, since the rich pay higher percentage taxes, the better for governements.

So we have a target that sees the richest governents, and the richest people within the countries with the richest governments, have increased wealth at the expense of most citizens of these G20 nations.

But wait, the truth is when you put it in perspective, it is actually worse than that.  This is a plan of the richest governements to manage their own wealth and totally ignore what happens to the poorest nations, who, let face it, are the ones who most need an increase in wealth.

Imange the news coverage for a conference in your country where on the rich could attend that was designed to purely increase the wealth of those rich attending.  Would it receive positve press?  Isn’t this the same simply on a global scale?


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