Welcome to Finance and Fury, the Furious Friday edition.

This is part 3 in the poverty miniseries, which is alongside the supply side economics flow on.

The first episode was supply and poverty.

The second episode was the big 5 factors of poverty.

Today we will put it all together to derive a system that can reduce overall poverty.

This system: will it be perfect?

  • Just look at Utopia
  • “misplaced faith in political utopias has led to ruin”
  • All systems have flaws
  • Having less freedom leads to more poverty
  • Could technically lead to more poverty, if it’s by choice

The system has to be 2 parts:

  1. What system works best to reduce the big 5 factors: reduce diseases, increase knowledge, reduce apathy, reduce authoritarianism and build resilience rather than dependence.
  2. What provides individuals freedoms?

Disease:

  1. Death from chronic disorders in the first world
  2. Death by horrible diseases in the third world like respiratory infections, diarrheal diseases etc
  3. The necessities: clean water, electricity, food, and education
  4. Where do these factors come from? Why aren’t these a problem in Western countries?

The System:

  • Corruption comes with any system
  • Greater power can show more corruption
  • But power is needed to provide a structure for secondary factors
  • Money in politics can represent a form of corruption
  • There is no sense of service working in institutions
  • Any powerful system will punish you for speaking truth about their evils
  • Lack of transparency within institutions, to remove this, politicians should forgo financial incentives
  • The formal education of politicians and the real world experience of politicians are very slim
  • Reducing the element of these factors helps to reduce poverty, by using a meritocracy

What does any system have the ability to create?

  • The remaining 3 factors – dependency, apathy and authority
  • The more power the government has, the worse off the population are
  • The focus should be not to make the population reliant
  • The battle between freedom and free stuff
  • Welfare helps to a point, but after that point it keeps people in poverty
  • The safety nets can either be voluntary or compulsory
  • Most people don’t want to support people who want to remain in the safety nets
  • These are not long term solutions
  • The lack of knowledge is a responsibility of ours
  • 12 years of school is not enough, Focus on practical and applicable skills. A libertarian view on education. Learn the basics
  • The best and brightest from these suffering populations leave, leaving no one to help fix local issues
  • Community systems that can help build self-reliance, dialectic systems help communities

Recap of the System:

  • Allows for the provision of infrastructure, concentrated responsibility to provide this
  • Corruption needs to be low to reduce poverty
  • Lack of decision-making ability
  • Provide jobs and the ability to get jobs
  • Greater the economic freedom, the lower unemployment is and the lower tax is
  • More freedom means less inflation and the greater price purchasing parity
  • Countries at the bottom have high government expenditure to GDP %
  Top 10 Bottom 10 166-176
GDP Growth

3.3

-2.8

0.9

Inflation

1.4

189.2

111.4

GDP per capita

$59,194

$9,140

$11,127

Unemployment

4.2

9.1

6.0

Public debt

52.2

69.6

57.6

Gov Expenditure

30.6

68.3

41.6

Tax Burden

22.1

21.5

24.1

 

The last 3 factors are solved by individual and Economic freedoms

  • Small percentage of people think that poverty has gotten better, the majority think poverty has gotten worse
  • Stop using a relative poverty measure, only 4% of Australians are in absolute poverty. It’s not extreme poverty.

Which political party seems to be on the right track?

  • Listen to the podcast to find out!
  • Government spending is about $16,000 per person in this country
  • Public earnings are about $1,775 pw whereas private earnings at about $1,590 pw.
  • The 74 senators have interesting life experience before politics

To summarise the episode:

  • More economic and individual freedom, the lower the poverty rates

Next week:

Back on track next week with the pitfalls of supply-side economics. There are 2 major faults.

If you liked the episode let us know by leaving a review, or get in touch with us at the contact page here.

From trading cows to ones and zeros, Pablo Escobar’s money eating rats, and how our money is all debt based currency

Hi everyone and welcome to Finance and Fury! Today we’re going to look at our current monetary system; what is considered money, and also the future of our monetary system. Today’s episode will be a fairly quick episode, and will be an introduction to a series of...

Say What Wednesday: Baby on Board! The Ultimate Guide to Maternity Leave

Welcome to Say What Wednesdays, where every week we answer questions from you guys, the listeners. This week the question comes from Mary; “Hey guys, love the show. Just wondering about what entitlements, I can receive if I go on maternity leave? I’m currently...

Do you need a family trust?

Say What Wednesdays Do you need a family trust? This week’s question is, ‘do I need a family trust?’. I have had a few questions about this over the past weeks, however in order to avoid making this ‘personal advice’, I thought I’d just talk about it in more general...

Artificial Intelligence and Investing: The future is here

Episode 29 Artificial Intelligence and Investing: The future is here Today’s episode of Finance & Fury we’re talking about Artificial Intelligence taking over the ETF and investment market. The discussion was actually started by one of our listeners, Gabriel who...

Furious Fridays: Elon Musk, Tesla and how CEOs affect share price

Furious Fridays Elon Musk, Tesla and how CEOs affect share price Today we’re talking about the markets, how CEOs affect share price and how public perceptions can make or break. We look at Elon Musk. Musk is a business magnate, investor and engineer. He is the...

Cover your butt! A closer look at diversification

Episode 6 Not all returns are created equal; diversification (and over diversification), correlation and covering your butt Welcome to Finance & Fury! I’m sure that everyone’s heard the saying, “playing it safe” before. And in any game, it’s generally a good idea....

Furious Friday: What are the 4 Cons for Supply-side Economics?

Welcome to Finance and Fury, the Furious Friday edition. We are continuing the series on supply-side economics. Today we will focus on the down-side of supply-side economics. Remember, supply-side economics believes that governments should remove barriers to...

Gold as a portfolio hedge – Why is the price rising and what are the methods of accessing gold?

Welcome to Finance and Fury,   Today – next gold rush – Final part of capital preservation – Allocation as a hedge for a financial meltdown - should preserve capital, withstand market volatility, and provide diversification across a portfolio Gold – an asset...

Should we be getting charged up for Electric Vehicles?

Welcome to Finance and Fury, The Say What Wednesday Edition Today’s question came from Matt and Lucas Labor’s plan for 50% of new cars to be electric by 2030 plus introduce a carbon emissions target for new cars. The Greens have one-upped this. Today we break down the...

Furious Fridays: The Death of Stalin

Furious Fridays The Death of Stalin Last episode we ended with Lenin’s death. The roll out of Communism was well underway and it was time for new leadership. One his last policies before he died in 1924 was the New Economic Policy (NEP) in 1922… A mixed economy put in...

Pin It on Pinterest

Share This