If the poor are getting richer who’s getting poorer? It’s an interesting paradox because when you give to someone you have to take from someone else.

When I sell a set of books someone gives up $20 and I make $20. Theoretically I am $20 richer and they are $20 poorer.

However, the $20 given up by the customer by choice received value in exchange. It wasn’t a one sided transaction.

The person with the new knowledge (my books) might generate many times the $20 he or she exchanged from the knowledge received.

Globalization, World Markets, and The Middle Class

The middle class in America is shrinking while poverty around the world is declining. How is that possible?

How can third world countries be making more income while American wage are stagnant?

The number of people living in extreme poverty across the globe has been reduced from 35 percent to 14 percent since 1993. Violence, childhood mortality, disease and illiteracy are on a downturn internationally. Eighty percent of people in the world can read and write.

But What About The American Economy?

Where are we today? Middle and lower class wages are treading water at best. One hundred twenty-six poverty programs sure haven’t moved the poverty needle very far. In some areas of America poverty is worse than ever.

So why are the poor incomes around the world improving while American incomes remain dormant?

The short answer is globalization and international trade. We make stuff overseas for people who have risen in the income brackets to a point they can afford to buy our stuff. Even more importantly with a little computer training they can produce it.

More automation, computers, and other production improvements have reduced the need for warm bodies to do the work in the US.

Basements in houses used to be dug out by several men with shovels and wheelbarrows. Today one man can do it quicker with a backhoe.

Carpenters used to saw lumber by hand and nail with hammers. Now both are done in twice the time with electric skill saws and nail guns.

One carpenter can do the work of five in the same amount of time.

Some Final Thoughts

As third world countries move up in both income and lifestyle there will be great money making opportunities in the future.

You might say that huge corporations will benefit but few others. Then my response would be to buy a piece of that company and put them to work for you.

The world is changing and those who are unable to change with it are going to continue flirting with the poverty line.

Third world countries are advancing because of that same globalization and technology that is reducing our work force here.

We are stuck in the manufacturing jobs mode that is leaving rather than embracing the technology jobs that are arriving. The world’s total knowledge doubles every 13 months.

Learn and earn, baby. Comments below.

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