<The world is moving to an era a spread prosperity as wealth is spread more evenly.>
Wealth and prosperity are relative. Happiness is individual.
2bn of the world's population currently corners the market on consumption of most of the energy, raw materials and assets. 6bn of the world's population will not earn the avg income of the US, Japan and UK.
'The pie is fixed in size' actually does apply here. There are limits to the supplies of raw materials, energy, clean water, air, food, and increasing competition for these resources will drive up pollution and health costs.
The median real income measured in a currency basket is coming off such a low base, that it will rise as a whole but the median will be higher in economies that are: resource-rich (Canada, Norway, Australia, Brazil, Mexico), have young populations and/or strong net migration (Iceland, Ireland, Australia, New Zealand Canada, Hungary, Turkey) or have low labor input costs and strong real productivity (China, India, Brazil, Mexico)
The median real income will be lower in developed countries that are import-reliant for energy and raw materials and have high labor inputs. The US, Germany and Japan fall here.
What are the inputs of countries like US, Germany and Japan? I have been struggling with this. |
