Tuesday, January 18, 2022

The 8th wonder

It is said that Einstein once said “Compound interest is the 8th wonder of the world” It implies that your money would always grow more - ad infinitum. Now this quote does not say anything about the not haves. What would happen to the not haves when the haves getting richer?  Is the size of the pie limited ? 



The above news implies that the size of the pie is limited. Hence the more some get, the poorer others would become. This reminds me of the social critics of Rhoma Irama, the Indonesian King of Dang Dut in his song 'Indonesia'  
Yang kaya makin kaya (The rich gets richer)
Yang miskin makin miskin (the poor gets poorer)
Rhoma sang that the root of this economical gap is corruption 
Selama korupsi semakin menjadi-jadi (as long as corruption is rampant) 
Jangan diharapkan adanya pemerataan (do not expect for economic equality) 

I guess no one would deny the impact of corruption to the problem of wealth distribution in one country. But is it applicable in global scale? I am no economist but I sensed that the economic system is could have some loopholes and flaw that would eventually support this inequality. 

It is possible that the rich people have found loopholes in the tax regime so that they did not pay enough. etc. In any case I sensed that the pie is limited and the recent pandemic has made the slices for the poor people got smaller and smaller. And once the money was redistributed to the rich  it would what Einstein once said : the 8th wonder of the world 
 

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