Poverty : A Corporate Creation & Ratio Controls for Eradication. ISBN : 978-1484087442
42 Pages Posted: 16 Nov 2016
Date Written: November 16, 2016
The essential item producers and distributors in every nation, inflate the prices of their commodities, to cover up their mis-management every year, so that more and more people are not afford to buy them. Thus they create, increase and maintain an expanding below-poverty line persons in the nation. Survival is to live within limited needs and continue over the generations. All the species, survived by fitting within the available, for many millennium. But human, because of their intelligence, survived in a 3 dimensional shell namely (a) the geography and environment (b) the social influences and (c) the economic infrastructure.
1) We can pin point each segment of the world population in and under poverty line using the World Bank survey map (2009). Poverty is not generated by the poor sufferers without the basic needs (food, shelter and clothing).
2) Poverty is created by the suppliers of the basic needs. They increase the prices beyond the purchasing power of the people on a continuous basis, to buy their minimum basic needs per month to live. They create and expand poverty in every nation at uncontrollable proportions. This is because of the fact the basic need suppliers are inefficient, unproductive, lethargic and absorb their inefficiencies and mis-management through price increase to the citizens, who are their captive customers.
3) The operating ratio (cost expense)/net income reflects the performance of the essential suppliers. Lower ratio represents prosperity. The essential sectors are in a normal and disturbed economic condition can innovate on (cost expense control), to stabilise or reduce the prices, and in turn, reduce the number of people below poverty.
4) Milk is taken as an essential item. An analysis of their operating ratio in government and private sectors in developing nations, indicate they are in high ratios (95% or more). The progressively increase the price at alarming proportions. It is because of their monopoly status, with all the citizen as captive customers. Comparatively, this ratio in developed nations are low and under control (70% to 80%).
5) Conversely, the operating ratio of non-essential goods in the developing nations are low and favourable, because of competition and global business operations. In poor nations, the operating ratio of other essential items like travel, textiles, construction are high. Agriculture in poor nations are found to be of little worth on land investment. The impact of these situations are reflected on the nation through increase in the trend of cost of living.
6) The first golden ratio is that the essential need suppliers should keep their operating ratio at 75 % or below and have a regular (cost expense) reduction program. This will eradicate the poverty in the world. This is applicable to all in government, public or private sectors and all the nations in developed, developing and under developed bracket of economic status.
7) The second golden ratio is to increase the output quantum of essential need supplies in the same proportion as the domestic population growth rate, at constant prices OR control the population growth rate within the possible output growth rate of essential commodities.
8) An analysis of the past freedom fight of the countries from British rule, indicates that they are based on “social independence” then “economic development” orientation. As a result, these nascent nations are dominated by poverty for over many decades (nearing to a century).
9) The reasons for poverty is found as adopting a “Destructive Democracy”, Internally legalised Apartheid and swindling the wealth of the nation by the elected representatives through large scale “scams”. The implementation of the (cost expense) control methodology to these nations, is difficult or even impossible. Hence they will be in a mono circular below poverty status for ever!! The advanced technology and computer aided management can never penetrate their socio-political mis-management shell!!!
Keywords: need, cement, clothing, construction, cosmetics, cost, darwin, diary, economic, environment, escape, essential, expense, fittest, food, gip, gnp, India, infrastructure, milk, nobel laureate, non essential, per capita, poverty, price, railways, social, supply, sector, shelter, survival, textiles
JEL Classification: A12, A13, A14, B41, D61, D83, E31, F01, G13, H83, I31, I32, M14, O1, P51, Q14, R48
Suggested Citation: Suggested Citation
Subramaniam, Viswanatha Sankara Rama, Poverty: A Corporate Creation & Ratio Controls for Eradication (November 16, 2016). Poverty : A Corporate Creation & Ratio Controls for Eradication. ISBN : 978-1484087442. Available at SSRN: https://ssrn.com/abstract=2870247