Friday, September 12, 2014

Inequality Brings Change

Inequality brings change, whether it be political, economic, or for civil rights. 

   Mercantilism is a short-sighted focus on gaining more wealth at the expense of others, often through a colonial relationship. In this mindset, the dominant country collects resources or basic materials from the colony, manufactures finished goods and sells them back to the colony at a profit.
   Part of the strategy is to prohibit the colony from manufacturing anything, or of selling raw materials to anyone else. Taking that a step further, the dominant country requires that all transport to and from the colony be done by dominant country shippers.

   So while home country merchants, manufacturers and shippers benefit from this arrangement, there soon comes a point where the colony is dry of resources and has no ability to purchase finished goods from either its parent or any other source.
   This ever-widening gap between the haves and the have-nots inevitably brings about a change in the relationship.
   Mercantilism thus creates a wealth gap. (Perhaps another word for mercantilism would be "greed.") It was a similar mercantilistic wealth gap that brought about American independence nearly 250 years ago. And in the late 19th Century and early 20th Century in America, a wealth gap helped foster the growth of labor unions to ensure reasonable wages and working conditions. Related to that was the Progressive political movement for social reform, from which evolved such things as government-sponsored pension plans (Social Security), unemployment compensation, and legal rights for labor unions.

   Wealth gaps help to foment change, in many countries through various means. Some for political independence, some for economic independence, some peacefully through evolution and some violently through revolution.
   Put another way, whoever has the most gold at the end, wins. But that does him no good if he has no food.

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