Poverty Changes

£14,000 is quite a large amount of money. Enough for 70,000 Freddos, a decade’s worth of holidays, two new Nissan Pixo’s, several thousand potatoes or a gold standard racing pigeon. However, if you’re trying to live off just that amount in modern Britain, it quickly seems quite a lot smaller. Half of that could easily disappear on rent, whilst the average British family will spend a further £4,000 on food (significantly greater than the European average, for one reason or another). Then we must factor in tax, work-related expenses, various repair bills, a TV license, utility & heating bills, petrol money and other transport expenses, and it quickly becomes apparent that trying to live on this amount will require some careful budgeting. Still, not to worry too much though; it’s certainly possible to keep the body and soul of a medium sized family together on £14k a year, if not absolutely comfortably, and in any case 70% of British families have an annual income in excess of this amount. It might not be a vast amount to live on, but it should be about enough.

However, there’s a reason I quoted £14,000 specifically in the figure above, because I recently saw another statistic saying that if one’s income is above 14 grand a year, you are one of the top 4% richest people on planet Earth. Or, to put it another way, if you were on that income, and were then to select somebody totally at random from our species, then 24 times out of 25 you would be richer than them.

Now, this slightly shocking fact, as well as being a timely reminder as to the prevalence of poverty amongst fellow members of our species, to me raises an interesting question; if £14,000 is only just about enough to let one’s life operate properly in modern Britain, how on earth does the vast majority of the world manage to survive at all on significantly less than this? More than 70% of the Chinese population (in 2008, admittedly; the rate of Chinese poverty is decreasing at a staggering rate thanks to its booming economy) live on less than $5 a day, and 35 years ago more than 80% were considered to be in absolute poverty. How does this work? How does most of the rest of the world physically survive?

The obvious starting point is the one stating that much of it barely does. Despite the last few decades of massive improvement in the living standards and poverty levels in the world in general,  the World Bank estimates that some 20% of the world’s populace is living below the absolute poverty line of surviving on less than $1.50 per person per day, or £365 a year (down from around 45% in the early 1980s- Bob Geldof’s message has packed a powerful punch). This is the generally accepted marker for being less than what a person can physically keep body and soul together on, and having such a huge proportion of people living below this marker tends to drag down the global average. Poverty is something that the last quarter of the century has seen a definitive effort on the part of humanity to reduce, but it’s still a truly vast issue across the globe.

However, the main contributing factor to me behind how a seemingly meagre amount of money in the first world would be considered bountiful wealth in the third is simply down to how economics works. We in the west are currently enjoying the fruits of two centuries of free-market capitalism, which has fundamentally changed the way our civilisation functions. When we as a race first came up with the concept of civilisation, of pooling and exchanging skills and resources for the betterment of the collective, this was largely confined to the local community, or at least to the small-scale. Farmers provided for those living in the surrounding twenty miles or so, as did brewers, hunters, and all other such ‘small businessmen’, as they would be called today. The concept of a country provided security from invasion and legal support on a larger scale, but that was about it; any international trade was generally conducted between kings and noblemen, and was very much small scale.

However, since the days of the British Empire and the Industrial Revolution, business has got steadily bigger and bigger. It started out with international trade between the colonies, and the rich untapped resources the European imperial powers found there, moved on to the industrial scale manufacture of goods, and then the high-intensity sale of consumer products to the general population. Now we have vast multinational companies organising long, exhaustive chains of supply, manufacture and retail, and our society has become firmly rooted in this intense selling international economy. Without constantly selling vast quantities of stuff to one another, the western world as we know it simply would not exist.

This process causes many side effects, but one is of particular interest; everything becomes more expensive. To summarise very simply, the basic principle of capitalism involves workers putting in work and skill to increase the value of something; that something then gets sold, and the worker then gets some of the difference between cost of materials and cost of sale as a reward for their effort. For this to work, then one’s reward for putting in your effort must be enough to purchase the stuff needed to keep you alive; capitalism rests on the principle of our bodies being X% efficient at turning the food we eat into the energy we can use to work. If business is successful, then the workers of a company (here the term ‘workers’ covers everyone from factory floor to management) will gain money in the long term, enabling them to spend more money. This means that the market increases in size, and people can either sell more goods or start selling them for a higher price, so goods become worth more, so the people making those goods start getting more money, and so on.

The net result of this is that in an ‘expensive’ economy, everyone has a relatively high income and high expenditure, because all goods, taxes, land, utilities etc. cost quite a lot; but, for all practical purposes, this results in a remarkably similar situation to a ‘cheap’ economy, where the full force of western capitalism hasn’t quite taken hold yet- for, whilst the people residing there have less money, the stuff that is there costs less having not been through the corporation wringer. So, why would we find it tricky to live on less money than the top 4% of the world’s population? Blame the Industrial Revolution.

Copyright Quirks

This post is set to follow on from my earlier one on the subject of copyright law and its origins. However, just understanding the existence of copyright law does not necessarily premeditate the understanding of the various complications, quirks and intricacies that get people quite so angry about it- so today I want to explore a few of these features that get people so annoyed, and explain why and how they came to be.

For starters, it is not in the public interest for material to stay forever copyrighted, for the simple reason that stuff is always more valuable if freely in the public domain as it is more accessible for the majority. If we consider a technological innovation or invention, restricting its production solely to the inventor leaves them free to charge pretty much what they like, since they have no competition to compete with. Not only does this give them an undesirable monopoly, it also restricts that invention from being best used on a large scale, particularly if it is something like a drug or medicine. Therefore, whilst a copyright obviously has to exist in order to stimulate the creation of new stuff, allowing it to last forever is just asking for trouble, which is why copyrights generally have expiry times. The length of a copyright’s life varies depending on a product- for authors it generally lasts for their lifetime plus a period of around 70 years or so to allow their family to profit from it (expired copyright is the reason that old books can be bought for next to nothing in digital form these days, as they cost nothing to produce). For physical products and, strangely, music, the grace period is generally both fixed and shorter (and dependent on the country concerned), and for drugs and pharmaceuticals it is just ten years (drugs companies are corrupt and profit-obsessed enough without giving them too long to rake in the cash).

Then, we encounter the fact that a copyright also represents a valuable commodity, and thus something that can potentially be put up for sale. You might think that allowing this sort of thing to go on is wrong and is only going to cause problems, but it is often necessary. Consider somebody who owns the rights to a book, and wants someone to make a film out of it, partly because they may be up for a cut of the profits and will gain money from the sale of their rights, but also because it represents a massive advertisement for their product. They, therefore, want to be able to sell part of the whole ‘right to publish’ idea to a film studio who can do the job for them, and any law prohibiting this is just pissing everybody off and preventing a good film from potentially being made. The same thing could apply to a struggling company who owns some valuable copyright to a product; the ability to sell it not only offers them the opportunity to make a bit of money to cover their losses, but also means that the product is more likely to stay on the free market and continue being produced by whoever bought the rights. It is for this reason legal for copyright to be traded between various different people or groups to varying degrees, although the law does allow the original owner to cancel any permanent trade after 35 years if they want to do something with the property.

And what about the issue of who is responsible for a work at all?  One might say that it is simply the work of the author/inventor concerned, but things are often not that simple. For one thing, innovations are often the result of work by a team of people and to restrict the copyright to any one of them would surely be unfair. For another, what if, say, the discovery of a new medical treatment came about because the scientist responsible was paid to do so, and given all the necessary equipment and personnel, by a company. Without corporate support, the discovery could never have been made, so surely that company is just as much legally entitled to the copyright as the individual responsible? This is legally known as ‘work made for hire’, and the copyright in this scenario is the property of the company rather than the individual, lasting for a fixed period (70 years in the US) since the company involved is unlikely to ‘die’ in quite the same predictable lifespan of a human being, and is unlikely to have any relatives for the copyright to benefit afterwards. It is for this reason also that companies, rather than just people, are allowed to hold copyright.

All of these quirks of law are undoubtedly necessary to try and be at least relatively fair to all concerned, but they are responsible for most of the arguments currently put about pertaining to ‘why copyright law is %&*$ed up’. The correct length of a copyright for various different stuff is always up for debate, whether it be musicians who want them to get longer (Paul McCartney made some complaints about this a few years ago), critics who want corporate ones to get shorter, or morons who want to get rid of them altogether (they generally mean well, but anarchistic principles today don’t either a) work very well or b) attract support likely to get them taken seriously). The sale of copyright angers a lot of people, particularly film critics- sales of the film rights for stuff like comic book characters generally include a clause requiring the studio to give it back if they don’t do anything with it for a few years. This has resulted in a lot of very badly-made films over the years which continue to be published solely because the relevant studio don’t want to give back for free a valuable commodity that still might have a few thousand dollars to be squeezed out of it (basically, blame copyright law for the new Spiderman film). The fact that both corporations and individuals can both have a right to the ownership of a product (and even the idea that a company can claim responsibility for the creation of something) has resulted in countless massive lawsuits over the years, almost invariably won by the biggest publishing company, and has created an image of game developers/musicians/artists being downtrodden by big business that is often used as justification by internet pirates. Not that the image is inaccurate or anything, but very few companies appear to realise that this is why there is such an undercurrent of sympathy for piracy on the internet and why their attempts to attack it through law have met with quite such a vitriolic response (as well as being poorly-worded and not thought out properly).

So… yeah, that’s pretty much copyright, or at least why it exists and people get annoyed about it. There are a lot of features concerning copyright law that people don’t like, and I’d be the last to say that it couldn’t do with a bit of bringing up to date- but it’s all there for a reason and it’s not just there because suit-clad stereotypes are lighting hundred dollar cigars off the arse of the rest of us. So please, when arguing about it, don’t suggest anything should just go without thinking of why it’s there in the first place.