Welcome to Finance and Fury, the Furious Friday edition

This episode is a flow on from the previous furious Friday episode question from Nick, about poverty.

Last episode we talked about how poverty is defined and the economic factors of poverty, which play only a part.

Today we will cover off on the major contributors of poverty. There will be a third part for answering the question about the types of government systems.

Poverty is a social problem:

  • Poverty as a lack of resources, so poverty at an individual rate
  • We didn’t address the social problem of poverty, communities, under-employment, lack of skills etc.
  • Social problems are secondary factors

Dr. Phil Bartle:

  • Spent time living with poor communities
  • Dedicated his life to the development
  • Much of our aid contributed to poverty
  • Empowerment methodology – struggle produces strength and ability
  • The solution is the removal of the big 5 factors
  • No moral judgment is intended

The Big 5 factors:

  1. Lack of knowledge – people keep knowledge to themselves and a lack of skills is the result. Expose individuals to training, not general education. Ivan Illich believes schooling keeps people poor in impoverished nations.
  2. Disease – absenteeism is high and productivity is low. Being healthy contributes to the eradication of poverty. Prevention is much better than treating a disease.
  3. Apathy – people feel powerless to try and change their conditions. Why try if the game is against you? Jealousy brings people back to poverty. Thomas Sowell shows cultures of a community. Some cultures help a community, some degrade a community.
  4. Corruption and Authoritarianism – a major cause of poverty. It is stealing from the public at a multiplier of detrimental effect. Using taxation as a way to fund the political class. Dictatorships have war, famine, and poverty.
  5. Dependency – this results from receiving charity. It is a short run solution but becomes depended on. Once they know what to do and how to do it, they can get themselves out of poverty. Empowerment is the alternative to charity.

Summary:

  • These 5 big factors all coexist together and contribute to furthering each other.
  • If we fight the factors of poverty, it will contribute to the decay of those factors and ultimately poverty
  • Tackling all 5 Is very important to reduce poverty, with empowering communities.
  • I don’t want to diminish those struggling, some people have been dealt with awful hands
  • Don’t believe in the easy band-aid solutions

In the next episode:

  • We will go through what system works best to reduce the 5 factors
  • To build resilience rather than dependence

Thanks for listening

Give us a review on iTunes and if you want to get in contact you can do so here at the contact page.

Resources:

The money multiplier effect can be learnt about in this podcast about the centralization of power and control of the economy – https://financeandfury.com.au/furious-friday-the-centralisation-of-power-and-control-of-the-economy/

Black rednecks and white liberals book – https://en.wikipedia.org/wiki/Black_Rednecks_and_White_Liberals

 

 

The RBA rate drop will further compound our ‘low growth trap’, rather than stimulating the economy

Welcome to Finance and Fury, The Furious Friday Edition In this ep, we continue looking at the lucky country look at a downward spiral in growth – low growth traps – and how it is created by what is meant to help growth?   Low growth trap – The big problem comes...

Eco-warriors are protesting for exactly what mining companies, Banks and the IMF want

Welcome to Finance and Fury, the Furious Friday edition Today is a Bonus episode on most recent series – Current events unfolding – Extinction Rebellion – Today focus more on the economy - Talk about How eco-warriors will collapse the economy – a self-fulfilling...

Who is responsible for your happiness and financial wellbeing?

Welcome to Finance and Fury Looking around in Australia - increasing disparity in wealth, and social fragmentation That social fragmentation means Australians are become "more self-interested, more materialistic, more competitive". Our largest challenge as a society...

Building a strategy to fit your goals

Welcome to Finance and Fury Today we are continuing from last week, and going through strategies to fit your goals. Some bad news… The workbook will be released next week because there are a few pieces missing, as it doesn’t achieve what I wanted it to. So as a DIY...

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....

Say ‘What’ Wednesdays: Is it time to jump ship? Should you sell your bank shares?

Say 'What' Wednesday Is it time to jump ship? Should you sell your bank shares? Today’s question comes from Jake. He asks “should I sell my bank shares, given the recent fall out from the royal banking commission?” IMPORTANT: This episode comes with a general advice...

How do you know if fixed rates are for you?

Welcome to Finance and Fury Today we have Jayden with us, and we will be talking about Interest rates. The first Tuesday of every month, the RBA releases the updates on the cash rate. The markets currently appear to be going down, and the cash rate reflects a negative...

The Financial Curse – When a Financial System does more harm than good

Welcome to Finance and Fury the Furious Friday Edition On the last episode we talked about the City of London Corporation, a mini plutocracy Today we are exploring at what point does a financial sector state to crowd out real economic growth? Referred to as the...

Where to invest in an uncertain economic environment?

Welcome to Finance and Fury Today’s episode is a thought experiment – Investing in the potential future for the economy, Gov expansion and increased money supply – inevitably with The replacement of the Dollar – who knows when - over the next few years, decade, or...

Which Vanguard ETFs are best to diversify into?

Welcome to Finance and Fury, The Say What Wednesday Edition This week the question is from Dan I am 21 and have about 70k in a term deposit and 5k in VHY and VGS ETFs. I am wondering whether over a period of 20~50 years I would be better diversifying into VAE or VGE...

Pin It on Pinterest

Share This