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Why Capitalism is the Crisis

Updated on March 2, 2016
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Mario Buildreps is a graduate engineer. Become aware of topics in a way you have never heard before.

Source

Inequality - How Wealth is Distributed

According to Forbes, the planet was home to just over 140 billionaires in 1987 but counts more than 1,560 today (January 2015), an increase by a factor of 11 in less than 30 years.

The rich 1% of the world - the millionaires and billionaires - own together nearly 50% of the global private wealth.

99% of the world population owns the other half of the global private wealth, and are fighting like dogs amongst each other to make a living. This is what the rich people like, because it enables their divide and conquer tactics to stay in control.

If all the wealth would be equally distributed, everyone would have a good life. But the rich prevent this to happen.

How Many People Are Actually Poor?

The amount of people that are rock-bottom poor is astounding. Nearly 50% of all the people in the world had to live from less than $2.50 per day. Each day more than 20,000 children die directly due to poverty!

Let's imagine that the few wealthiest would organize themselves in a true charity fund (not the kind of meaningless Rotary club charity for image building), and share half of their wealth with the 3 billion most poor people.

Charity organized on this scale has never been done before. And without the aim to get even richer after this. Real charity. The rich elite would have no troubles organizing this on a global scale, for they own indirectly the banks, the governments, armies and police forces.

Why is Wealth Convergence Not Working?

Wealth convergence is the theory that there would be a natural mechanism in the global economy that causes the poor countries, with the lowest salaries, to become automatically richer. Richer countries would invest in poor countries in order to achieve higher profits on the production of consumer goods. Thus this mechanism is initially based on greed. A good example is China, that emerged from a poor country to a much richer country in just a few decades.

But there appears to be in these countries deeper mechanisms at work that prevents true wealth convergence. The main reason is that these countries are owned by foreign countries - mainly Americans and Europeans. They remain firmly in their position, behind the screens. This prevents wealth convergence to work.

Capitalism shows that investment policies of the rich countries converges to a money flow (in the emerging countries) to marionettes dedicated to protect the investors interests, and thus stimulates corruption.

Conversely, countries owned by other countries, whether in the colonial period or in Africa today, have been less successful...

None of the Asian countries that have moved closer to the developed countries of the West in recent years has benefited from large foreign investments...

— Capital by Thomas Piketty

Distribution of Wealth

Source

Top 10 Richest Families

Rank
Name
Net Worth (Billion$)
Age
Source
Country of Citizenship
1
Rothschild
400
-
banking
United States
2
Rockefeller
340
-
banking
United States
3
Carnegie
310
-
industry
United States
4
Bill Gates
80
59
Microsoft
United States
5
Warren Buffett
72
84
Berkshire Hathaway
United States
6
Carlos Slim Helu & family
70
74
telecom
Mexico
7
Amancio Ortega
60
78
retail
Spain
8
Larry Ellison
50
70
Oracle
United States
9
Charles Koch
41
79
diversified
United States
10
David Koch
41
74
diversified
United States
 
 
 
 
 
 
1 – 1560
All Billionaires over the World
7.4 trillion$
 
 
 
1561 – 12,000,000
All Millionaires over the World
55.0 trillion$
 
 
 
 
 
 
 
 
 
TOTAL
Trillions owned by 1% of the families (x $1,000,000,000,000)
62.4
 
 
 
figures December 2014

The Amount of Billionaires in the World

The total amount of billionaires in the world is estimated at 1560. Their net capital is 7,400 billion$ (7.4 trillion$).

The amount of gold currently available worldwide is 171,400 metric tonnes. Most surprisingly, with an actual value of 41,700 US-$ per kilogrammes, the billionaires have their capital almost covered - 7.15 trillion. The capital of the (multi) millionaires isn't covered in gold. It means that the capital of only the billionaires is really present. That of the (multi) millionaires is not represented in gold.

Capital of billionaires per country in USD (amount of billionaires between brackets):

  1. United States – 3,506 billion$ (518)
  2. China - 429 billion$ (136)
  3. Germany - 338 billion$ (82)
  4. Russia - 321 billion$ (83)
  5. India - 226 billion$ (54)
  6. France - 219 billion$ (40)
  7. Hong Kong - 206 billion$ (42)
  8. Brazil - 161 billion$ (53)
  9. United Kingdom - 144 billion$ (43)
  10. Italy - 136 billion$ (33)

The rest of the world: 1,697 billion$ (472)

The Amount of Millionaires in the World

The list of millionaires, who could join the billionaires in sharing their wealth among the poorest, is much longer. There are currently 12 million millionaires. Their collective capital is 55 trillion$ ($ 55,000,000,000,000). This is such an amazing amount of money that if this money would be shared equally, every cosmopolitan (from baby to elderly) would have $ 7,800! But the problem seems that this capital is not actually present in gold, for it is taken by the billionaires. The richest first, then the rest, this is how it works.

Thus, if all the billionaires and millionaires would try to cash their capital, only the billionaires would be able to do this. After the rush by the billionaires the loot is gone. This means that the capital in the world is for 12% real, and for 88% nothing more than hot air.

The tiny spot had to be enlarged 25 times to become visible in the ocean poorness! There is not one rational reason for the rich not to share a part of their wealth.
The tiny spot had to be enlarged 25 times to become visible in the ocean poorness! There is not one rational reason for the rich not to share a part of their wealth. | Source

Gross World Product (GWP)

According to the figures on bymap.org, the Global World Product (GWP) in 2013 was 87,180 billion$ (=87.2 trillion$). The GWP per capita was in 2013 $12,287 - that is at the level of Brazil, Iran and South Africa. There are 103 countries richer, and 125 countries poorer than this average GWP.

There are 1.8 billion people living above this average, and 5.4 billion people are living below this average. This shows clearly that the world could be a much better place than it is now. The poorest countries have the most natural resources, and this is no coincidence.

Who is responsible that wealth convergence is not working? The rich elite.

The poorest country in the world - Democratic Republic Congo is potentially the richest country on earth. It has the largest mineral resources of the world - Diamonds, Gold, Coltan, Copper, Cobalt, Tin, Manganese, Lead, Zinc, etcetera. At least 25 trillion US-$. Together worth double the size of the GDP of the US, or easier to understand - nearly 4 times the capital of all billionaires together! The armed conflicts took already 6 million lives, the largest conflict after WWII.

All directly caused by the investment policies of the criminal rich elite.

10 Poorest Countries

Rank
Country
GDP (billion$)
GDP per Capita
1
Congo (Dem. Rep.)
29.4
389
2
Burundi
5.8
528
3
Zimbabwe
7.5
569
4
Somalia
5.9
583
5
Central African Republic
3.3
646
6
Liberia
2.9
726
7
Eritrea
4.7
757
8
Niger
14.0
827
9
Malawi
15.0
895
10
Madagascar
22.0
975
Source

10 Richest Countries

Rank
Country
GDP (billion$)
GDP per Capita (US $)
1
Monaco
5.7
188,218
2
Qatar
198.7
97,285
3
Liechtenstein
3.2
92,057
4
Luxembourg
42.7
82,877
5
Macau
47.2
82,356
6
Bermuda
5.6
81,539
7
Singapore
339.0
62,084
8
Kuwait
165.8
61,514
9
Norway
282.2
59,754
10
Jersey
5.1
56,160

Sharing Wealth With the Poorest

If only the 1560 billionaire would share 'only' 50% of their wealth with the 3 billion poorest people everyone would get $ 1,250 each. This micro-capital would make a life changing difference between life and death for once and for all.

A family of 7 persons would have in this scenario $ 8,750. Imagine what would happen to the world if this scenario would unfold.

The poor masses will finally be able to start a sustainable life. Why isn't this happening?

Examples - What Could Poor People do With Micro-Capital?

For example India has 1.8 million sq. kilometre agricultural land, and 1.2 billion inhabitants. This equals 667 inhabitants per kilometre. The amount of inhabitants seems awful high, but there is also another way of looking at this figure.

One square kilometre contains 100 hectare. Imagine that every family would obtain a family domain of one hectare. An average family of 7 people could be fully self supporting on the average surface of 1 hectare. There is though one condition - that inhabitants must vegetarians. Eating meat destroys the natural balance with a factor 16.

If the rich elite would donate per family domain, an average domain of 7 family members would get together about $8,500. Agricultural land in India costs around $2,500 per hectare. The rest can be used for building housing, buying seedlings and seeds, irrigation or drainage, and to buy tools.

The people on this domains would have the means to sustain themselves without external aid. No landlords or banks to whom they must pay rent or rent-roll. All additional income that inhabitants would generate must be free of tax. The inheritance law must be changed so that children can inherit the domain.

The land surface of India is 5.1 million sq kilometre. Only 35% of India's surface would be able to house the whole population. The most astonishing fact in this representation of figures is that there are only 7 people on 1 hectare of agricultural land.

Materialistic Wishes

The point is that there is no spacial problem in India, if everyone would desire a natural life. It's mainly an economical/political problem.

Capitalism thrives on the fact the every cosmopolitan seems to want TV's, smartphones, Coca-Cola, McDonald’s and more of this kind of junk. This image of 'wanting' is represented on every corner of the street, everywhere in the world.

People who know nothing above this 'godlike' image of fake happiness, think this is their ultimate goal too. It is planted by Lords of Capitalism, the rich elite, in everyone's brain on purpose.

The fact that people in the world cannot sustain themselves, without going to some unwanted job far away from their home, cranks up the necessity of transport i.e. roads, cars, buses, etcetera. Since everything in India and China goes in large numbers every minor problem is multiplied with millions at once, which always results in huge problems.

Wealth Distribution Among the Poor?

The rich elite can, if they organize themselves, within a few years solve most of the major problems in the world.

The rich elite could establish a bank in every poor country in order to redistribute their capital. Every family that would obtain money to start their own family domain, should get a short training how to organize money, how to labour the land, how to sow and harvest, etcetera. This training can be organized by the (local) government.

Since the rich elite eagerly maintain their position through inheritance to their inbred offspring, confirms that they are not eager to make the world a better place.

It's time for sharing the wealth with the world. Time for revolution, time for Meritocracy and 100% inheritance tax!


© 2015 by Buildreps

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    • Nadine May profile image

      Nadine May 2 years ago from Cape Town, Western Cape, South Africa

      You have written a good article on this topic. All I can say is that one day Money is not any more what it represents today. The power through having financial wealth will be no more. In my visions it will be individual skills were a persons value lies. I hope this will still happen in my lifetime.

    • Buildreps profile image
      Author

      Buildreps 2 years ago from Europe

      That's for sure. Money won't be the primary thing anymore, and the use of individual skills will become the primary thing that will propel humanity to divinity. The Old World Order will break within 10 to 15 years.

    • billybuc profile image

      Bill Holland 2 years ago from Olympia, WA

      Great research. I'm sure your suggestion is not a popular one among the diehard capitalists, but it is a suggestion that needs to be considered....revolution indeed, my friend.

    • Buildreps profile image
      Author

      Buildreps 2 years ago from Europe

      Thanks for dropping by, Bill! If the Rothschild's like this ideas, we'll read it in the news papers soon. Hopefully...

    • profile image

      fred 2 years ago

      Capitalism is the more advanced and a thousand times more brutal form of feudalism. Feudals killed with swords and lances, whereas the capitalist murders using drones, napalm and soon nuclear weapons. For every individual the feudal murdered the capitalist has and is continuing to murder a million.

    • Sharp Points profile image

      Sharp Points 2 years ago from Big Bear Lake, California

      What an informative and easy to read article. It makes me so angry to think about the wealth inequality that causes so much suffering and pain to half of the human population. Especially because it is only a few thousand or so who manipulate the system, potentially killing thousands to make a few million bucks. Then again, I do not know what it is like to grow up without any concept of reality. Some of them may really have no idea, and perhaps a handful would care more if they were not ignorant. I also believe that these multimillionaires and billionaires are suffering from sort of an addiction. It sucks that people are never satisfied, that a family could have 400 Billion Dollars and still want more. That being said, if our minds did not work that way we certainly wouldn't be here.

      Excellent Hub. Really got me thinking. Two thumbs up!

    • Buildreps profile image
      Author

      Buildreps 2 years ago from Europe

      Thanks for your nice comment, Sharp Points. The capitalistic system is indeed quite perverse, and still everyone wants to be 'in'. Joining means only making the richest richer. Capitalism works like a black hole, the more matter gets in, the stronger it becomes.

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