Yes, you can eliminate worldwide unemployment and poverty in less than 1 year, with no additional debt. Part 1.

Part 1:

 We can eliminate worldwide unemployment and poverty under 1 year, for ANY country, and do it PERMANENTLY with NO DEBT. This will sound shocking and unbelievable, but ironically it is shockingly and unbelievably simple to do.

 ANY country can do it and can do it IMMEDIATELY.

 

First I will explain our current system of Capitalism, and how it unintentionally has created a worldwide gigantic mess of debt and national economic disasters.

Current Capitlistic society has two economic classes of people. Business Owners and Salary Workers.

Business Owners want to become rich, so take risks by investing capital, creating jobs for salary/wage workers, and then selling products and goods for profit.

Salary/Wage workers take less risk, by not investing their capital, and primarily use the skills to work shifts of 8 hours to earn a wage.

You will be shocked to know that this is the root cause of all economic mess.

To illustrate this, let’s create two model countries.

Country Rich, where all the business owners migrate, and move all their capital into a single Bank account, jointly owned by residents of Country Rich.

Similarly, let’s move all the workers to Country Worker, and they also move their entire capital to a single bank account, jointly owned by workers of Country Worker.

A typical society has 10% business owners and 90% workers.

The world population is 8 billion, so Country Rich would have 0.8 billion residents and Country Worker would have 7.2 billion population.

Let’s simplify this to say that Country Rich has 100 members and Country Worker has 900 members so that we can keep numbers simple and easy to understand.

Let’s give everyone an initial capital of $1 per person so that Country Rich has a bank balance of $100 and Country Worker has a bank balance of $900.

Country Rich members start a business to make Pizza, a wonderfully delicious and must have product. Pizza is a metaphor for all goods and services produced in society, like food, medicine, housing, education, and clothing.

Rich use the principle of capitalism to hire the least amount of people and pay the least amount of wage possible. This is not bad but rather common sense. Business needs to be profitable and it requires lower cost and higher revenue. Revenue minus cost is profit.

Rich residents give job offers to 500 residents of Country Worker and offer a $100 monthly wage.

Workers have to take it because there is no other means of income.

After a month, the Workers produce 1000 delicious and yummy pizzas with their hard work and take home a wage of $100. Country Worker Bank balance becomes 900 + 100 = 1,000 whereas Country Rich Bank Balance becomes the original $100 minus wage paid $100, so $100- $100 = $0.

The Rich go on a binge party and eat 500 pizzas. What an amazing life. All amenities of life are there for them!.

After eating 500 pizzas, 500 pizzas are still left.

Now, the Rich have to make a profit on their business, so need to sell these 500 pizzas for a price that will make it profitable to run the business.

So, they set the price to $200.

The Country worker's residents have eaten nothing and are famished.

They promptly go and buy the 500 pizzas for $200 and satisfy their fundamental needs.

But now the Country Rich have $200 in their Bank balance, the selling price and Country Worker have $800 in their bank balance, the original $1000 minus $200 equals $800.

 

Here is a shocking and amazing summary.

Country Worker members worked hard to produce 1000 pizzas, got $100 for it, and ended up buying back 500 of those very same pizzas for $200!

Workers enjoy roughly 1 pizza per person and accumulate a loss of $100.

Country Rich members invested $100  and definitely worked very hard to set up the business, manage the employees, and manage the sales but ended up enjoying 5 pizzas per person besides gaining a wealth of $100.

This is fundamental Capitalism.

The same story repeats next month.

Rich enjoy 5 pizzas per person, and their wealth increases by $100. The Workers get 1 pizza per person and their bank balance decreases by another $100.

Needless to say, I have simplified and amplified the numbers, but the fundamentals are sound and accurate.

After a few months, the Bank balance of workers becomes zero, and the rich have an entire $1000.

This is fundamental capitalism. Wealth moves from workers to business owners.

Business owners are not evil or bad people. It is simply the design of Capitalism.

But we have a knotty problem now.

Next month, Business owners again employ 500 workers and make 1000 pizzas, eat 500, and put the remaining 500 on sale for $200, but workers only have $100 to spend, their recently earned wage!

This is petrifying for business owners. This is a catastrophic situation.

Banks enter the scene.

Banks are run by smart people, who give loans to the worker and need the workers to return the original back with interest.

Banks also give loans to business owners, but business owners ultimately take loans with the expectation that they will make a profit, which is only possible if workers pay more than they earn, so this is similar to the regular pizza business model, so we will ignore this.

Country Worker owners take debt of $100 to pay the rich $200 so that they can buy the 500 pizzas for $200. But, they also need to pay $10 per month for each $100 loan.

So, next month, the problem repeats again. The workers earn $100 and pay $10 to the Bank, the interest for the previous loan. Now, they have left $90, and need to buy $200 worth of goods, so they now need a loan of $110. As you can see, taking loans is not the solution and will lead to the rapid bankruptcy of Country Worker residents.

So, now politicians enter the scene, who need money from the Country Rich and votes from Country worker residents.

So, now politicians take loans from Bank and fund various social schemes to ultimately put $100 in the pocket of Country Worker, who start paying $200 to Country Rich each month to buy their goods.

How do politicians plan to pay back the debt? Very easy, kick the can to the next politician who enters the office!

This setup has led to a worldwide economic fiasco.

The Country Rich has 300 trillion dollars of wealth in their Bank account and Country worker has $300 worth of debt, and this is increasing rapidly each year.

The debt has become unsustainable, and many countries are failing to pay their loan.

Srilanka, Pakistan, Jordan, Egypt, and Turkey are examples of countries that have collapsed.

In addition, the USA, Italy, Argentina, Mexico, and many other countries are entering a precarious zone of collapse.

We need to act immediately before more countries collapse and the situation of unemployed and poor people keeps deteriorating.