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.

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Leaning Right

The political spectrum (yes, politics again) has, for over 200 years now, been the standard model for representing political views, adopted by both the media and laymen alike. It’s not hard to see why; the concept of judging every political view or party by a measure of left-ness and right-ness makes it very simple to understand and easily all-encompassing, allowing various groups to be easily compared to one another without a lot of complicated analysis and wordy explanations. The idea comes from the French revolution towards the end of the 18th century; in the revolutionary parliament, factions among political figures were incredibly divisive and the source of open conflict, so much like home & away fans at a football match they attempted to separate themselves. Those sitting to the left of the parliamentary president were the revolutionaries, the radicals, the secular and the republican, those who had driven the waves of chaotic change that characterised the revolutionary period. However, as the revolution went on, another set of views formed running counter to the revolutionary ideas of the left-sitters, and who quickly found their way into an equally tight-knit group on the right hand side of the hall; those who supported the principles of the monarchy, the prominence of the church in French society and politics, and the concepts of hierarchy and rank. It goes without saying, of course, that those populating the right-wing, as it would become known were mainly those who would benefit from these principles; the rich, the upper class (well, what little of it that hadn’t been killed off) and the high-standing.

And, according to the Big Book of Political Cliche’s, right wing=bad. Right wing means uber-capitalist, aristocratic, a semi-tyrannical overseer extorting money from the poor, innocent, repressed working classes and supportive of stealing from the poor to give to the rich. The right is where racists are to be found, old-fashioned bigots out of touch with the real world, those who think slavery was an excellent business model, and the neo-Nazis (I realise I may be pushing the envelope on what the stereotype actually is, but you get my point).

However, when one analyses the concept of right-wingedness (far more interesting than the left, which is all the same philosophy with varying degrees of mental instability), we begin to find a disparity, something that hints that our method of classification itself may be somewhat out of change and in need of a rethink. Right wing is considered to incorporate both a socio-economic position (pro-capitalist, laissez-faire and ‘get the poor working’ in very broad terms) and a social equality one (racism, sexism, discrimination etc.) akin to Nazism, and nowadays the two simply do not align themselves with the same demographic any more.

I mean, consider it purely from the ‘who votes for them’ angle. In Britain, the (nowadays fairly nominally) right-leaning Conservative party finds it power base in the country’s richer areas, such as the Home Counties, and among the rich & successful capitalists, since their quality of life can be put down to the capitalist model that Conservatism is so supportive of (and their benefits from taxation are relatively small compared to the help it provides the poorer demographics with). However, far-right parties and political groups such as the British National Party (BNP) and English Defence League (EDL) tend to seek support from right at the opposite end of the social ladder, seeking support from the young, working-class, white skinhead male sphere of existence. Both of them draw support from a predominantly white power base, but beyond that there is little connection.

This is not something solely prevalent today; the Nazi party are often held up as the epitomy of right-wing for their vehemently racist ‘far-right’ policies, but we often seem to forget that ‘Nazi’ is just a corruption of ‘Natso’, short for ‘National Socialist German Workers Party’. The party’s very title indicates that one of their key areas of support was for ‘the German Workers’, making a similar appeal as the communists of the time. Although their main support was eventually found in the middle  and lower-middle classes (the upper end of the social ladder considering Hitler a poor upstart who would never make anything of himself, demonstrating exactly how out of touch they were with the real world), the Nazi economic policy that put Germany through an astonishing economic turnaround between 1933 (when the Nazis took power) and 1939 was closely centred around the socialist ‘public works & state-controlled business’ model that Franklin D. Roosevelt had recently adopted to lead the USA out of The Great Depression. Many socialists and communists would doubtless have approved, if any of them hadn’t been locked up, beaten up or on their way to forced labour camps. In terms of socio-economic policy then, the Natso’s were clearly less ‘National’ and more ‘Socialist’.

We are, then, presented with this strange disparity between the economic-policy based ‘right’ and the racism-centric ‘far right’. The two were originally linked by the concepts of nationalism and traditionalism; from the earliest days of the political spectrum the right wing have always been very much supportive of a return ‘to the old ways’, of thinking nostalgically of the past (usually because there was less left-wingedness in it) and that the modern world is getting steadily worse in the name of ‘progress’. One feature identified in this vein is that of immigration, of foreign-born workers entering the country and ‘stealing our jobs’ (et cetera), in their view devaluing the worthiness of their own country. This has made the idea of nationalism and extreme patriotism a stereotypically right wing trait, and the associated view that ‘my country is better than yours’. This basic sense of the superiority of various races is the key rhetoric of ‘Social Darwinism’, a concept pioneered by the Nazis (among others) that suggests that Charles Darwin’s ‘Survival of the Fittest’ principle should be applied to the various races of humanity too, and that the ‘better’ races have a right of superiority over the ‘lesser’ ones (traditionally ethnic minorities in the west, such as middle eastern and black), and this too is a feature of many far-right viewpoints.

But the field has changed since those ideas were pioneered; the modern world that we live in is for one thing a lot easier to traverse than before, meaning that those rich enough to afford it can easily see the whole globe in all its glorious diversity and wonder for themselves, and our increasingly diverse western society has seen a significant number of ‘minorities’ enter the top echelons of society. It is also true that using cheap, hard working labour from immigrants rather than from workers with trade unions makes good economic (if often not moral) sense for large corporations, meaning that the ‘rich capitalist’ demographic who are so supportive of conservative economic policy are no longer the kind of people who worry about those ‘stealing our jobs’. This viewpoint has turned to the opposite end of the social spectrum, the kind of people who can genuinely see their jobs being done by ‘foreigners’ and get jealous and resentful about it; it is these people who form the support bas for right-wing populists and think the EDL know what they’re talking about, and in many ways that is more worrying. The rich having dangerous, extreme views is a serious danger, but there are comparatively few of them and democracy entails just one vote each. The number of young, angry, working class white men is far larger, and it is this demographic that won the BNP a seat in the House of Commons at the last election. Will this view get more or less prevalent as time goes on? I would like to think the latter, but maybe we’ll just have to wait and see…