Yet again Oxfam gets it wrong on inequality and poverty
Source: IEA , Author: Posted by BI-ME staff
Posted: Mon January 22, 2018 1:59 pm

LONDON. Commenting on Oxfam’s latest report, Mark Littlewood, Director General at the Institute of Economic Affairs, said:

“Oxfam have, again, come up with a gross misrepresentation of world poverty which fails to line up with everything else we know about human advancement and income improvements.

"Demonising capitalism may be fashionable in the affluent Western world but it ignores the millions of people who have risen out of poverty as a result of free markets.
 
“Eradicating absolute poverty is best done by ensuring the right institutional framework exists to enable economic growth. But instead, Oxfam is promoting a race to the bottom.

"Richer people are already highly taxed people – reducing their wealth beyond a certain point won’t lead to redistribution, it will destroy it to the benefit of no one. Higher minimum wages would also likely lead to disappearing jobs, harming the very people Oxfam intend to help.
 
“Oxfam also cite another distortionary statistic, which is that the top 1 per cent has a higher net wealth than the bottom half of the world’s population. But we know from the lifecycle of asset and debt accumulation that people do not tend to build up wealth until well into their working lives. Furthermore, many of the oldest people will live in the very rich countries, and are usually very asset-rich. It’s unsurprising that the global net wealth distribution is so skewed – demographics alone are vastly important.
 
“Oxfam – a development charity – seems obsessed with the rich rather than concerned with the poor. It should stick to its remit of poverty relief rather than obsessing over the wealthy."

About the Institute of Economic Affairs
The mission of the Institute of Economic Affairs is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems and seeks to provide analysis in order to improve the public understanding of economics.

The IEA is a registered educational charity and independent of all political parties.

Photo: For illustrative purposes only

.

 

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

date:Posted: May 21, 2018
UAE. A new defence is being developed that will allow companies to tackle the latest threats as soon as they appear on the network; Machine learning enables AI to detect patterns in all sorts of data sources and create behaviours based on recognized patterns.
date:Posted: May 17, 2018
UAE. The report states that 50% of SME funding applications are rejected by banks and that alternative trade finance, powered by FinTech and Blockchain, is on the rise.
date:Posted: May 17, 2018
INTERNATIONAL. New research shows trust in organizations is diminished as consumers believe businesses don't know how to protect their data.
dhgate