Thursday, May 9, 2019

The Dilemma of Productivity



The Dilemma of Productivity


As explained by Nima Sanandaji in his Masterpiece Scandinavian Unexceptionalism: Culture, Markets and the Failure of Third-Way Socialism in Scandinavian Societies “low income inequality, low levels of poverty and high economic growth pre-dated the development of a generous welfare state. Starting in the 19th century, the people of the Nordic countries created vast amounts of wealth, founded new firms and industries, and generated societies with high degrees of social trust and moral responsibility. They built on foundations that, as a result of their histories (absence of feudalism) were comparatively egalitarian and mono-ethnic”. Scandinavians and their descendants in the US gathered themselves formed communities around lutheran churches, adding value to the economy with high levels of productivity. Consider the following chart reflecting that Scandinavians and their descendants in the US are actually “richer” (measured in GDP x capita) than their counterparts in Scandinavia.



The success of the Nordics (and their descendants) IN the Nordics AND IN the US little had to do with the Government. It was a cultural success based on a set of shared values, marked by a mentality shaped by religion. This is clearly explained in Max Weber s Masterpiece “The Protestant Ethic and the Spirit of Capitalism”.
Weber wrote that capitalism in Northern Europe evolved when the Protestant (particularly Calvinist) ethic influenced large numbers of people to engage in work in the secular world, developing their own enterprises and engaging in trade and the accumulation of wealth for investment. In other words, the Protestant work ethic was an important force behind the unplanned and uncoordinated emergence of modern capitalism.
Protestantism had supported worldly activities dedicated to economic gain, seeing them as endowed with moral and spiritual significance. This recognition was not a goal in itself; rather they were a byproduct of other doctrines of faith that encouraged planning, hard work and self-denial in the pursuit of worldly riches. Societies having more Protestants are those that have a more developed capitalist economy.
Remember that multiculturalism also means multireligion, and according to the line of thought followed across all this essay (Conflict Theory) the different ethnic groups that compose migration waves do not mix but gather themselves in communities. These communities present different levels of productivity (measured in GDP x capita). This essay shows evidence that contrary to socialist belief wealth does not cascade down equally to society as whole, but only amongst those who belong to the same social group. Being so the communities reside in the same country, but present different realities. This explains why rich countries also present high levels of social exclusion, clearly stating that money does not resolve all issues, and socialism does not achieve equal distribution.
As mentioned before, the solution will not come from upstairs. Right and left, socialism or free markets, all economic policy has failed in equalizing opportunities. The communities must acknowledge this and understand that they must find the solutions themselves. By increasing their productivy, the created wealth will cascade amongst the members of that community (and their descendants). Only through sheer, raw, entrepreneurial spirit can they change their own situation, by adding value to the economy and improving their own situation and hierarchy in society. They will find challenges. They do not have the same cultural (at least knowledge of local mainstream culture) and social capital that locals do. Negative trends in the productivity of migration (and their descendants) explain the rise of inequality in developed countries, and must be resolved. The communities must not reject but embrace their own origin to release the full potential of their creativity and contribute positively to their own productivity.
According to Karl Marx and his Class Theory, the burgueoise controls the means of production purchasing the labour power of the proletarian. Thus the proletariat, in itself, is forced into a subservient position by the power of capital, which has stripped the means of production from them. Non-Europeans and their descendants in Europe (and Argentina), constitute the new proletariat, the new “cheap labour”.
Consider what was mentioned earlier: in Silicon Valley, only 2% of the workforce is African-American. This low degree of african-american successful tech entrepreneurs explains the poorer situation for the afro-american group in the US. By increasing the amount of afro-american tech entrepreneurs, the situation for the whole group will improve, as they hire and give more opportunities to other afro-americans.
Revolution 4.0 introduces a new era of prosperity for the people of Earth. In the past indutries were CAPITAL intensive, today they are KNOWLEDGE intensive. Establishing a business is getting cheaper than ever. In a Knowledge based economy Karl Marx´s Class Theory is teared to PIECES. The burgueoise, previously owners the means of production, cedes room to a new entrepreneurial proletariat which has free access to education and information. With access to Internet, a Laptop and Little investment it is posible today to found a billion-dollar business. The proletariat, doomed to selling their services as cheap labour, can now take control of their own fate and situation by succeding in entrepreneurship.
The government cannot do this job for them, it can only support and stimulate. The communities must find a way to increase their productivity themselves so that is cascades to their members and descendants. Welfare programs give momentary relief, but do not attack the issue at is core. The communities must learn how to FISH in foreign waters. Revolution 4.0 DESTROYS (or CONFIRMS?) Marx´s Class Theory giving room to the Age of EQUALITY. As the old saying goes:

“Give a man a fish and you feed him for a day; teach a man to fish and you feed him for a lifetime”.






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