This week’s cover article of “The Economist” declares, “Toward the end of poverty.” Such a phrase is just dumb; it completely misses the fundamentals of global finance and economics.
On a hypothetical basis, the idea that we could reduce the number of those making less than $1.25 per day to 100 millions by 2030 makes sense. Models can do anything. But is there even the faintest whisper that the definition of $1.25 per day contributes any meaning to the word poverty? Absolutely not. In other words, what is the relationship between financialization and happiness? Complex, and often inverse.
Poverty is an artifact of our financial system. Proposing the elimination of poverty through financialization is a little like saying you can cut down on sunburn by spending more time in the sun.
That the Economist is declaring such misguided paradigms completely undermines their credibility in understanding anything meaningful about economics as it relates to people and the planet. But maybe they never had that much of such things to begin with.