Saturday, January 4, 2014

Poverty is a Distribution Problem

Put a floor under Poverty.

The poverty line is that level at which you can have sufficient food, adequate shelter, effective medical care, and the opportunity to learn any necessary skills  with no regard to income level .

The money is just the method we use to distribute the Goods & labor to the point of need.  The need at the poverty level  does not change unless you change the standard of what is needed.

If the amount of money needed changes, then change the amount of money directed at the need. There is no limit to the amount of money available any more than there is a limited number of points for a scorekeeper to score an athletic contest.  The only limit is the productive capacity to perform the task.  

When the Society cannot produce enough to meet the need for Goods & Labor, the money is useless. The capacity to produce Goods & Labor needs to be improved.. When it does you can then create and distribute the money that distributes the Goods & Service.  

Money is just the tool of distribution, just as the plow is used to turn the soil or the loom  to weave the cloth.  The person who has the money can get the goods. The amount of Goods & Service you have an entitlement to depends on the amount of money that you have to spend in ratio to the total amount of money that is being used in the transfer process for the Goods or Service you seek to acquire.

                                               copyright © William Hodge 2014