We need a new economic model …..

From the recent financial crisis in Greece to the wide-spread protests in Brazil against the worsening economic condition of the people; from the extreme under development in African countries to the presence of enormous slums in Asia, the gap between the rich and the poor is widening day by day. It has led people to revolt against it by means of protest or some are pushed to violence and crime.Majority of the criminals are driven to crime for their dire need to fill their stomach, to cover their head; if not later on but they are mostly driven to it in the beginning by this need. The divide between the haves and have-nots is increasing. In every government throughout the world all the policies are made up for the benefit of rich only which constitute the minute percentage of the society. images

The question is why? Why is it so that when humans have advanced so much in knowledge, research in every field and still we are having people who are homeless, who can’t make their both ends meet? Why is it so when few of us spend so much on partying and luxuries and others of us can’t even afford his basic needs, Why? Why are people dying of hunger, of cold , Why?

The answer is because of our economic models and economic policies. Broadly speaking there are only two economic models which are in practice in modern-day world -Capitalist economy and Socialist economy.

Capitalist economy by its nature is a rich friendly economy i.e, it makes rich richer and poor poorer. The present crisis in the world is because of this model. The rich exploit this model very well. This model develops the individual capital and hence developing the capital of country but at the same time the poor get crushed. For example in Nigeria, which is the 4th largest crude oil supplier to USA, the development and the living conditions are in a distress. According to the locals, the farmer who has oil in his field is the poorest because he gets deprived of his land and is not also paid for that oil. Then who benefits from it- The big multinational crude oil companies who drill the oil and export it. Due to this ordeal people have resorted to protest and crimes like oil piracy in the region to at least make their both ends meet.

This is just one example, such examples are present all over the world. The big multinationals might give financial support for development but it hardly reaches the masses.

On the other hand socialist economy is such which if purely socialist is not practically possible, that’s why most of the socialist countries of the world are turning towards capitalist models. Socialist model says that in a country wealth should be equally distributed. For the growth and development the socialist model is not feasible.

There might be some who say that it can be possible that first we apply capitalist model in a society so that necessary capital, skill and development are generated and then shift to the socialist economy. But this is not possible because most of the governments are run by capitalists and even if they implement the socialist one later on it still would be a capitalist but in a new mask.

So what should we do???

At present we need an economic model, which can take us out from this crisis, this widening gap. This model can be a hybrid of both, or it can be any thing else; but we are in a dire need of a new economic model for world.

One thought on “We need a new economic model …..

  1. Capitalism makes the rich richer and the poor richer. Socialism makes the rich poorer and the poor poorer. Which one do I want, hmm… Well, I guess since I hate the rich, I want the on that makes them poorer. Nobody has ever tried capitalism, therefor we know it doesn’t work, because how could it work if no one did it? We also know that nothing new will ever be invented because how could it be invented later if it isn’t invented now?

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