Is Modern Economy going backwards?

It is quite enlightening after reading Graeme Maxton interview with Personal Money regarding his third book titled The End of Progress: How Modern Economics Has Failed Us. A summary of his thoughts below.

Men’s greed led to mass over-consumption in modern economics. Commodities are not infinite. There are already numerous future depictions of world conflict which arises due to scarcity of resources – food,water and liquid gold. Debt crisis in the US and Europe – it is just a time bomb. The rich become obscenely richer, and the gap widens between them and the poor. How much further the debt ceiling be raised? How long can this be sustained? Progress and intellectual development are stagnating – instead of being concerned about the major global issues, people are more concerned about designer handbags and the latest gadget. In today’s age, freedom often means – do as you like regardless of its consequences as opposed to freedom of thoughts and expressions in the 18th century Age of Enlightenment.

Is Modern Economy going backwards? by CF Lieu - Certified Financial Planner Malaysia

Graeme suggested that we start protecting our resources and change the way we approach consumption. No more wasting. Ever ponder how our life would be if sweet crude oil costs $1,000 per barrel instead of $100? [Author]: That’s like RM 18 per litre for RON95 here, and it would take RM 720 to fill up your car 40 litres tank.

Wealth should be distributed evenly, not just concentrated on a few. Live should not be made terrible for the poor, but nowadays, the rich becomes richer, while the poor sinks further. This, of course, is in contradict with a free market – with minimal government intervention. But before things goes spiraling out of control, perhaps it is prudent to raise tax on consumption and undeserved income. Undeserved income from doing nothing which comes to mind includes profit gain from financial speculating. On the contrary, productive work tax should be reduced.
[Author]: A statement made by Warren Buffet recently echoed this sentiment. He urged US lawmakers to raise taxes on wealthier Americans to cut Washington’s budget deficit. In other words, tax the rich more while tax the middle class and the poor less.

What’s your take?

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