Like any other system, capitalism has its positive and negative qualities. Inarguably, it has lifted nearly a billion across the globe out of extreme poverty between 1990 and 2010. But as with other socioeconomic systems of the past, such as with feudalism, a time can come when revolutionary changes make such systems anachronistic. So too has capitalism’s time come, at least the kind which exploits the biosphere.
A more sophisticated system must replace it. One reason is because we are on the verge of a technological shift which will make almost all working and middle class jobs obsolete within the next 25 years or so. Currently, middle and working class families are already getting squeezed in developed countries. Their wages have remained stagnant for decades while costs have steadily risen.
Today, 15% of the US population is below the poverty line. If you include children under age 18, the number is 20%. All the gains in productivity over the last several decades have gone to the top one percent of income earners, while the economic prospects for the vast majority stagnated or worsened. Then there’s the environmental impact. We’re about to kick off the sixth great extinction event. and we’ll follow shortly after.
The massive, gaudy houses lining the streets of America’s upscale suburbs began to look like the epitome of bad taste and poor judgement once the foreclosure crisis hit. The writer behind the blog “McMansion Hell” tells why they’ll eventually be gone for good. Huffington Post
Two apparently unrelated things happened in the first week of October that say so much about New Zealand these days.
The world’s two biggest “fast fashion” chains, H&M and Zara, opened shops here, creating the kind of scenes we’ve not seen before. More than 300 people queued and there was applause and a rush for the racks when the door opened.
Remember, these were people queuing to pay money for clothes that can be bought any day of the week, from any computer on the planet, and there is no shortage of choice It is not queuing for bread in a war zone. It was an active choice by sane people willing to take time out of their busy days to enthusiastically consume.
Four days after the H&M opening and the day before the Zara opening, Treasury published a paper on the rise in New Zealand’s household debt to record high levels relative to income. Our household debt to income ratio of 165 per cent is now about 5 per cent above those previous highs of 2008 and rising quickly as debt rises around twice as fast as incomes.
Researchers are starting to look at the issue of debt and saving in a similar way to those who study obesity epidemics. Our Western society has created an environment full of cues and prompts to encourage us to eat high-energy food as often and as cheaply as possibly – an obesogenic environment.
It has also developed into an economic geography that encourages us to spend money we don’t have.
There are ways you can look at obesity epidemics as being very similar in terms of what do we have to do around changing the systems and the culture, and not just the information, so different choices are not just possible, but different choices are being normalised. NZ Herald