Much is being made in the world press of the statistic that came up at Davos that 1% of the world’s wealthiest own as much or slightly more than everyone else put together.
The statistic of course does not include national and state wealth that is owned by all.
The suggestions being made are that this is out of balance and the position should be rectified. But this suggestion overlooks the effects of doing so.
It is not the extent of the wealth holdings themselves that affect the people of the world, but what the people who have that wealth do with it.
The really wealthy have their wealth invested in mining, industry and commerce, etc, and they plough back their returns into the startup of new mines, factories, businesses, etc. This creates jobs and benefits mankind.
They also put their wealth into public benefit charity projects.
Bill Gates, the richest man in the world, is ploughing more than 90% of his wealth into such projects that are fighting malaria and famine around the world.
If what commentators are suggesting is put into effect and their excess wealth were redistributed to the poor, it would be used to buy consumables. This would add a temporary boost to commerce and industry sales volumes, but because there would be no concurrent increase in productivity it would drive inflation and the benefit to mankind would evaporate.
This is exactly what happened to all nations in the world that adopted communist doctrine economies and whose people then slid into the poverty that can still be seen today in North Korea and Cuba where the system is still practiced.
-Andre Jensen, Mill Park, Port Elizabeth