Wednesday, March 07, 2007

Wealth creation

The term "wealth creation" is one you tend to hear a lot. Todays' example was in the ongoing debate over the charitable status of many independent schools (This is a side issue to the main topic of the rant, but the guy on the radio this morning supporting independents claimed at one stage that one third of independent school pupils get assistance with the fees. He runs a school of 800 and had to admit that just 65 of his pupils got assistance. Not quite the 33%, but never mind eh?).
Anyway, wealth creation. For me, it's like matter. It can't be created or be destroyed, merely shifted about. Witness the export of call centre jobs to (e.g.) India and now Łodz in Poland (according to today's Gazeta). Move the jobs there because it's cheaper and you eventually have to pay them a similar wage to that that you would here. Then you look for the next area where you can find cheap labour. And so on, and so on, and so on. It's just one massive, global pyramid scheme and at some point it will crumble, just like pyramid schemes the world over have done in the past, albeit on a radically smaller scale.

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