Liberal Economy

Hello Everyone. Happy New Year to all.  Thank you Siggi for the link. Interesting.

The one important point I got from reading Stewart Brand’s article is that wherever people are – there goes wealth creation. Be it urban or rural, people create their own wealth. This is just consistent with human nature to find out ways on how to survive and better one’s life.

One point is missing though, wealth creation is not an end in itself. Wealth distribution and wealth consumption completes the whole picture of wealth creation. True that the poor create their own “squatter cities”  which “generate a seething informal economy.” I take it that this informal economy also propels the formal economy and that this cycle benefits the nation as a whole. But does the wealth created  by this informal economy redound to the wealth creators – the poor in the cities who create it? The fact that it is an informal economy already says something about the distribution and consumption of resources.  More often than not, the wealth created was obtained by subverting some laws. Otherwise, why not take part in the “formal economy” processes, instead? We have squatter cities that thrive on drug-smuggling, theft and robbery. Squatter cities more often than not become haven for criminal acts.   We have squatter cities that force women and children to prostitution and mendicancy. Do all these form part of the informal economy that creates wealth for the poor in the cities? 

This makes us revisit the concept of “wealth.”  For me, there can only be true wealth creation when this wealth redounds to one’s general well-being as a person of dignity. Squatter cities create wealth –but for whom? Maybe a minuscule portion enough to sustain one’s bare existence redounds to the creator but the bulk of this wealth created – I take it – goes to somebody else who has not exerted much effort to create the said wealth, in the first place.

I cannot agree with Mr. Brand that rapid urbanization is something to be optimistic about. Aside form the rise of criminality in the urban areas, it also contributes to pollution and other environmental problems.  I can only look forward to the day when people will remain in the rural areas because they “don’t have to” go to the cities to try their luck. I can only look forward to the day when people start thinking that wherever they are – wealth follows them – legitimate wealth at that.

Happy New Year to all!

PS: If you have the means to, please watch The Inconvenient Truth. It’s an interesting documentary on climate change. If I may suggest to some of our local officials, please make the documentary a required viewing especially for the students in your respective localities. It will change the way you live your present so that a future can await you still.  

Regards,

Dash