Thursday, 25 January 2018

World's 2k top billionaires could wipe out extreme poverty with 14% of what they gained last year

quote [ Last year saw the biggest increase in billionaires in history, one more every two days. Billionaires saw their wealth increase by $762bn in 12 months. This huge increase could have ended global extreme poverty seven times over. 82% of all wealth created in the last year went to the top 1%, while the bottom 50% saw no increase at all. ]

Link is to Oxfam's annual report on inequality. I know I sound like a broken record, but seriously, the filthy rich can stay filthy rich and still eradicate poverty. It is not a zero sum game. Categorized as Business because there's no Economics.

The full paper is 76 pages, otherwise I would have included it.
[SFW] [business] [+6 Underrated]
[by midden@7:15pmGMT]

Comments

steele said[1] @ 7:38pm GMT on 25th Jan [Score:2 Interesting]
The Great Leveler: Violence and the History of Inequality from the Stone Age to the Twenty-First Century (The Princeton Economic History of the Western World) by Walter Scheidel

How only violence and catastrophes have consistently reduced inequality throughout world history

Are mass violence and catastrophes the only forces that can seriously decrease economic inequality? To judge by thousands of years of history, the answer is yes. Tracing the global history of inequality from the Stone Age to today, Walter Scheidel shows that inequality never dies peacefully. Inequality declines when carnage and disaster strike and increases when peace and stability return. The Great Leveler is the first book to chart the crucial role of violent shocks in reducing inequality over the full sweep of human history around the world.


Ever since humans began to farm, herd livestock, and pass on their assets to future generations, economic inequality has been a defining feature of civilization. Over thousands of years, only violent events have significantly lessened inequality. The "Four Horsemen" of leveling―mass-mobilization warfare, transformative revolutions, state collapse, and catastrophic plagues―have repeatedly destroyed the fortunes of the rich. Scheidel identifies and examines these processes, from the crises of the earliest civilizations to the cataclysmic world wars and communist revolutions of the twentieth century. Today, the violence that reduced inequality in the past seems to have diminished, and that is a good thing. But it casts serious doubt on the prospects for a more equal future.


An essential contribution to the debate about inequality, The Great Leveler provides important new insights about why inequality is so persistent―and why it is unlikely to decline anytime soon.


Haven't read it yet, but it's on my bookshelf waiting for me. Too much going on these past few months. :(
midden said @ 9:58pm GMT on 25th Jan
This is why part of me was disappointed that the "great recession" after the real estate bubble burst wasn't worse. For it to have made a significant difference in how we do things in the US, there needed to be breadlines, massive shantytowns and trucks making the morning rounds to collect bodies.
steele said @ 11:17pm GMT on 25th Jan
In some ways we're kinda almost there. You can really start to see the seams during disasters like hurricanes or floods. The whole just-in-time supply chain method that most of the US retailers rely on falls apart and suddenly it takes weeks for stores to stock back up to normal levels. Streets of tents and homeless are becoming more common in areas with the weather to support it.
midden said @ 2:57am GMT on 26th Jan [Score:2]
Yes, I agree we were almost there. Just a little worse, and I think it would have tipped over into more like what I described. I just read an article in the Washington Post today about the saline drip shortages due to the disaster in Puerto Rico. But I think it will take a serious shock to the system to make any meaningful change, be that bodies on the streets, or riots and lynchings of silicon valley elites. I'd rather see breadlines that murderous mobs.

That WaPo article on saline:

https://www.washingtonpost.com/news/to-your-health/wp/2017/10/09/hospitals-scramble-to-avert-saline-shortage-in-wake-of-puerto-rico-disaster/

Full text:
Reveal
Update: The Food and Drug Administration has given Baxter International permission to import saline and other intravenous solutions from its manufacturing facilities in Australia and Ireland to ease shortages in the United States, according to letters that the company sent its customers on Monday.

The hurricane that wreaked havoc on Puerto Rico last month has disrupted production of widely used IV solutions. Several prominent hospitals across the country are scrambling to find alternative supplies, change the way they administer drugs and devise backup plans to make the fluids themselves.

The products affected are smaller-volume bags of sodium chloride, known as saline, and dextrose. These normally ubiquitous solutions are used to rehydrate patients and to dilute medications from antibiotics to painkillers to cancer drugs. Their manufacturer, Baxter International, has said that “multiple production days” were lost in the wake of Hurricane Maria, and it has set up an allocation system for hospitals based on past purchases.

The situation could be a harbinger of further shortages resulting from the extensive damage to Puerto Rico's sprawling pharmaceutical-manufacturing sector. FDA Commissioner Scott Gottlieb said in a statement Friday that the agency is working to help the island “recover its medical product manufacturing base…a key component of the island's economic vigor.”

However, he warned, even facilities with only minor damage are working at just partial capacity. “New shortages could result from these disruptions, and shortages that existed before the storms could potentially be extended,” he said.

More than four dozen FDA-approved drugmaking facilities are in Puerto Rico, including ones owned by Pfizer Inc., Merck, Eli Lilly, Johnson & Johnson, Bristol-Myers Squibb and Amgen. The plants produce treatments for cancer and HIV, as well as immunosuppressants for patients with organ transplants. Among the top-selling medications manufactured there are the blood thinner Xarelto and the cholesterol drug Lipitor, according to a report by Healthcare & Life Sciences Review.

Several manufacturers said recently that they didn't anticipate product shortages resulting from the hurricane, saying their facilities weren't heavily affected. But people on the island say it has been a challenge for many to get to work and to get products in and out.

A Baxter spokesman said Friday that “limited production” of IV fluids is occurring at its Puerto Rico facilities. He said the company is “working to leverage our global manufacturing footprint to support alternative production of these products as we work to restore operations.”

Some hospitals on the U.S. mainland said late last week that they haven't been impacted by Baxter's problems, while others said they are having trouble getting the popular “mini-bags” that they use to deliver drugs to patients. While two other manufacturers make IV solutions, supplies are tight. Some medical centers are switching to other brands or to larger-volume IV bags that Baxter makes elsewhere.

But those and other changes can require a change in procedures on how drugs are administered — and new orders and training for the nursing staff — to ensure efficiency and patient safety, according to hospital officials.

Chicago's Rush University Medical Center, like many other systems, uses a Baxter product called the “mini-bag plus” to administer IV solutions to patients. The bags allow a nurse to add a prescribed medication, mix it up and give it to the patient quickly.

Thomas Wheeler, corporate director of pharmacy at the medical center, said he no longer can get the Baxter bags and so has shifted to a product that works somewhat differently. Usually, he said, he would have made such a change slowly after extensive planning. But in this case, he added, he had to put it into place in 48 hours.

Kuldip Patel, associate chief pharmacy officer of Duke University Hospital in Durham, N.C., said he ran out of the mini-bags after getting only 25 percent of his normal order. Like other large hospitals, Duke has its own compounding service that can prepare IV solutions from raw ingredients if necessary, but the process is time-consuming, Patel said.

Jeff Thiel, assistant vice president for pharmacy services at NorthShore University HealthSystem, which is headquartered in Evanston, Ill., said he's getting half his normal supply from Baxter. Switching to a different product “is not terrible,” he said, “but it does cause some disruption in the work flow.” And Erin Fox, director of the Drug Information Center at the University of Utah Health system, said it hasn't been able to get the Baxter mini-bag plus since before the hurricane. “We are thinking, how do we conserve the small bags that we have?” she said.

All the hospital officials said that patient care has not been impaired.

For years, hospital pharmacists have had to grapple with shortages of dozens of drugs. Experts blame several factors, including manufacturing glitches, quality-control problems and business mergers. The IV-solutions market has seen significant upheaval since last year. Pfizer bought Hospira, a pharmaceutical and device company, and spun off its IV products to the infusion company ICU Medical Inc. Another company, B. Braun Medical Inc., has a smaller share of the IV market. Baxter remains the dominant player.

“This year has been challenging for multiple manufacturers,” said Chris Snyder, drug information pharmacist for shortages and recalls at the Cleveland Clinic. “And the hurricane has definitely compounded it.”

Several doctors and pharmacists remain on edge about the possibility of additional problems. Peter Adamson, who is chairman of the Children's Oncology Group, said that the clinical trials it conducts nationwide have not yet had participating hospitals hit by drug shortages related to Puerto Rico. But Adamson, a pediatric oncologist at Children's Hospital of Philadelphia, said “there remains great concern that treatment for children with cancer may soon be affected.”

Several hospital officials are calling on the FDA and drugmakers operating in Puerto Rico to release more information about what other products might soon be in short supply, as well as to allow hospitals to purchase some supplies from overseas, if necessary.

An agency spokeswoman said it is working with some companies to speed up import of supplies from other manufacturing sites. It also is working to expedite approval of other dosage forms and generic versions, she said. In his statement, Gottlieb said he plans to provide more details on specific products as he learns more about the situation there.
steele said @ 3:24am GMT on 26th Jan
Yeah, There's a quote floating around the interwebs about a guy that watched a nurse standing there to give his wife medication over the course of a few hours because they had run out of bags. This whole thing is a fucking mess.

I think climate change and the seemingly gradual building up of natural disasters might be what it takes to topple everything over. Gotta figure Amazon or Uber's Otto is going to make a play for the majority of US Logistics and transport in the next ten years. That'll lead to the whole just-in-time methodology to become so precise that we're going to be talking about just-under-the-wire. One bad wildfire/flood/hurricane season could be the tipping point for some serious widespread shortages.

At least we have cat videos and VR. 360 VR cat videos! :)
hellboy said @ 10:10pm GMT on 25th Jan
There's definitely a consistent pattern: the rich get richer, and use their wealth to distort the rules to make it easier for them to get even richer (never mind that they already have more than they can use), but harder for anyone else to join them, until finally the pitchforks and torches come out. It's guillotines all the way up.
Anonynonymous said @ 10:26pm GMT on 25th Jan
Which would've been fine, but time after time after the pitchfork and torches phase we ended up only resetting the playing field and start slowly building up to the same bullshit again, until the next pitchfork and torches event.
steele said @ 10:51pm GMT on 25th Jan
I forget who it was but a while back in one of the inequality or ubi posts someone posted a video of a jenga tower toppling over with the caption Inequality 101 or something like that. :)
0123 said[1] @ 10:25pm GMT on 25th Jan [Score:-4 Boring]
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lilmookieesquire said @ 11:30pm GMT on 25th Jan [Score:-2]
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midden said @ 4:01am GMT on 26th Jan [Score:-2]
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0123 said @ 12:18pm GMT on 26th Jan [Score:-5]
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HoZay said @ 2:44am GMT on 26th Jan [Score:2]
Educating Girls, Ending Child Marriage would be a good way to address world poverty.
steele said @ 3:13am GMT on 26th Jan
Check that Economist article on Basic Income. There's Unconditional Cash Transfers (UCT or UBI) and then Conditional Cash Transfers (CCT). For CCT one of the conditions they've found works is mandatory schooling. #2Birds1Stone
HoZay said @ 4:10am GMT on 26th Jan
Also helps with slowing population growth.
hellboy said @ 10:11pm GMT on 25th Jan [Score:1 Good]
Can we just fucking eat them already?
steele said @ 10:48pm GMT on 25th Jan
I see an emerging market for cannibal cookbooks!
Anonynonymous said @ 7:34pm GMT on 25th Jan
Since it's all relative. If extreme poverty does get wiped out, wouldn't primary poverty simply be redefined to the new extreme poverty?
steele said @ 7:40pm GMT on 25th Jan [Score:3 Underrated]
People going hungry, people living on the streets, people dying of exposure is not relative.
Anonynonymous said @ 10:22pm GMT on 25th Jan
But let's say the current people suffering from extreme poverty suddenly gained more wealth along with spending power, wouldn't they still end up on the street because of the shifting goalpost created by the nature of a market economy?

Obviously, the ideal situation would've been, more people can afford housing = More houses are built in more neighborhoods = Less homelessness overall.

But we're far more likely to end up having, more people can afford housing = Housing becomes more expensive = The same amount of people ended up homeless.

There's always gonna be people ending up on the tail-end of the spectrum no matter what you do. And that's the shitty reality I don't think we can solve anytime soon.
steele said[2] @ 10:41pm GMT on 25th Jan
Which is more important? People or profit? The outcome you describe is what you get when you assume the answer is profit. You're not even imagining the possibility of a world where the answer becomes people. And you're not alone, which is why we will probably see mass violence long before the answer ever becomes people.

Btw, I highly recommend that Ezra Klein podcast ft Jaron Lanier midden posted the other day. They specifically talk about a lack of imagination most people seem to exhibit when it comes to our current societal situation.

Also the post-work article Raph posted the other day, highly relevant.
donnie said @ 10:51pm GMT on 25th Jan [Score:-2]
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midden said[1] @ 11:10pm GMT on 25th Jan
If those filthy rich people made some calls and said, "I need a ten thousand tonnes of rice in Gambia, Uganda, and Rwanda, each by the end of February, plus two million malaria vaccines," do you really think they couldn't make it happen?
donnie said[1] @ 11:27pm GMT on 25th Jan
Ten thousand tonnes, sure. You could probably feed 2% of the world's population in extreme poverty for one day with that and existing markets and production channels could probably supply it without creating any serious shortages.

The remaining 98%... for the entire year? Agriculture production can't just go "poof" and appear out of the aether.

Besides - where is this money going to come from? Most of the wealth owned by the super-rich is not tied up in liquid assets, and most of their capital gains did not come from liquid assets. To free up the cash to buy that rice they would need to sell assets. If they sell those assets then someone else has to buy them. So where is that money going to come from?

Seriously, I don't think you've thought this through...

I mean, even let's imagine that they *can* liquidate enough to stimulate development of new agricultural production - who would run those farms? Should the same super-rich person hold onto them as assets? What happens next year when the money runs out? Who will the farms sell to now that the super-poor people they were developed to help now have little change in their economic circumstances and their rich benefactors can't afford to continue liquidating their capital to keep feeding them? The whole thing collapses.

This is an infrastructure problem, not a "feed the poor" problem. Wiping out poverty isn't a thing you can just turn a knob and do. You need to develop cities, waste management, roads, industry, production, agriculture, power distribution, ports... this takes time. Lots of time, and lots more money than a few million tonnes of rice. Articles like this woefully oversimplify the scale of the task with some painful sophistry and ridiculous number flinging. It's just not like that.
midden said @ 3:36am GMT on 26th Jan [Score:1 Good]
Yes, I have thought this through, although I admit I am not an economist or global logistics expert.

"What happens next year when the money runs out?"
Are you being facetious? This is obviously not a one time, overnight solution. It is a systemic and systematic redistribution of resources. The numbers put forth are clearly intended to show how a small fraction of the most wealthy have many, many times what would be needed to get the job done, if they and we as a society chose to make it happen.

I agree that a huge part of the problem is an infrastructure problem, but that is very definitely secondary to the motivation problem. I'm not saying the entire problem can be resolved over night, but I am saying that if the wealthy wanted to make it happen, and fast, they could. No, obviously world hunger, poverty, lack of medical care can not be eliminated in two months. I agree that realistically, it would take years to get the distribution infrastructure in place. A big part of all the feeding, housing, medical care, etc. to eliminate poverty is obviously building the infrastructure necessary to deliver. That is all very doable, but first you have to want to do it.

I don't think food shortages are a problem when 1/3 of the food on the planet already goes to waste every year and US obesity rates range from 22% to 38%, depending on state, and Europe catching up fast.http://www.fao.org/save-food/resources/keyfindings/en/
https://stateofobesity.org/rates/ http://www.euro.who.int/en/health-topics/noncommunicable-diseases/obesity/data-and-statistics

As for the difficulty of liquifying assets, it's globally insignificant. If we use Oxfam's numbers, we are only talking about $107 billion, annually and globally. That's a relative drop in the bucket, and should not cause any noticeable disruption to world markets. It is 0.0025% of the US GDP, and a few decimal places even smaller of the global GDP.

Who should run those farms? How about a small fraction of those currently stuck in poverty?
donnie said @ 11:24am GMT on 27th Jan
You're still talking about delivering aid. Aid doesn't solve the problem - development does. Aid is a bandaid. Development is much, much more expensive than aid and it takes much longer. If you build infrastructure to deliver aid you're now just committed to a losing cause.

If you want to talk about food waste, this isn't a problem of the rich having too many assets, it's a problem of everyday people just eating too much and wasting too much. So why are we proposing a solution where the rich are somehow responsible and ought, by conscience, to be liquidating assets when the real issue is entirely to do with an efficiency problem of distribution and consumption?

How much food did you waste last year? Why is that the fault of some rich guy who owns too much stuff?
midden said @ 3:34pm GMT on 27th Jan
Yes, in the old world economic model, I think you are right. I think that model only works, however, when productivity remains below some threshold and costs remain above another. As I've said in other posts and threads, we now just have a lot more people than we need to house, clothe, feed, and entertain us all. As long as we cling to the outdated concept that to deserve basic human rights one must have a full time job, poverty will lock a vast swath of humanity in undeserved misery.
satanspenis666 said @ 11:32pm GMT on 25th Jan
Money is money. Doesn't matter if it belongs to the rich or poor. If a person cannot sell a capital asset for cash, then the asset is not fairly valued.

When a wealthy person pays a tax and the money is used to purchase goods/services, the wealthy will benefit as more money is being circulated in the economy. A wealthy person that owns a farm or a grocery store will see more demand. They can raise prices or sell more goods, increasing their profitability.
donnie said @ 11:34pm GMT on 25th Jan [Score:-1 Boring]
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steele said @ 12:08am GMT on 26th Jan
You can force them to pay their fucking taxes tho. Because as you've just described it, their wealth is dependent upon the infrastructure of a society they are leeching to death.
donnie said @ 12:24am GMT on 26th Jan [Score:-2 Boring]
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steele said[1] @ 12:45am GMT on 26th Jan
Except we've seen exactly how your scenario plays out in sweat shops across the globe. Hell, we've seen how that plays out in the US's company towns and gentrification efforts. All you're describing is a less violent form of colonization where the populace go from starving to slightly less starving wage slaves.

And don't even get me started on the cult of micro-lending

On the other hand, throwing money at poor people works surprisingly well.
rylex said @ 1:48am GMT on 26th Jan
Pshaw sir! If we were to keep throwing money at poor people, they wouldn't be able to remain poor now, would they?
donnie said[1] @ 2:37am GMT on 26th Jan [Score:-3 Boring]
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norok said @ 7:28am GMT on 26th Jan [Score:-5 Troll]
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