October 05, 2016
Sir, Deborah Hardoon of Oxfam, when commenting on the latest World Bank study writes: If world leaders want to stamp out extreme poverty they need to ensure that the poorest get a fairer share of economic growth. “Poorest receive an even smaller piece of the pie” October 5.
No one could argue with that. And yes, quite often there is no alternative than to redistribute income and wealth; though in that case, in order to keep the redistribution profiteers at bay, I much rather prefer a Universal Basic Income scheme.
But, before any redistribution, we must exhaust all possibilities for the poor to have the opportunity to achieve, on their own, a fairer share of the economy. And that, besides for instance the chance to having the best education possible, includes having fair access to bank credit, something which they are currently denied.
The risk weighted capital requirements for banks; less capital for what is safe; like the past, the rich, the sovereign, the AAArisktocracy - and more capital for what is risky; the future, the poor, the unrated We the People, only decrees inequality.
Anyone once informed about this, and that then keeps quiet on such odiously discriminating bank regulations, becomes to me a suspect of following a business or political model that depends on growing inequality. Impossible? Am I exaggerating? I don’t think so. I come from a country, Venezuela, where we have actually heard some government affiliates arguing “we need to keep them poor so as not lose control over them”.
PS. Let me in on a little secret; the more poor that become rich, the better for us all!