Reflection on the World’s Economy

There is a scheme that the government and economists fail to address; the world economy is based on an increasing population, the failure to address this scheme makes sustainability impossible. The world needs a new model of how to do things so as to be able to raise the standards of living of its inhabitants instead of depending on a pyramid scheme. The worlds need to find a scheme that will be able to offer a solution to the increasing population growth (Mcmahon, 2019).

It is urgent that the world changes its scheme since its current circumstance demands so.  Children are dying allover due to poverty related causes, and a majority percentage of humanity lives on $10 per day. The world is defined by a growing population but the cruel reality is most of its population are not able to meet its daily basic needs and this is due to the political and economic dilemmas’ facing the less developed countries (Balaam, n.d).

Developing countries are a worldwide concern, bearing many burdens such as long-term debts. In the 1990s, many of these countries had failed to reap the full benefits of Washington Consensus and found themselves heavily indebted to the World Bank and IMF and could not be able to pay back those debts. The economic liberal perspective on development requires these countries to become integrated into the global economy and most especially through trade, its major obstacles include anemic capital, productivity and technology. The relationship between these countries and western countries will be mutually beneficial. These countries will be able to improve their working conditions which in return will increase the standards of living (Balaam, n.d).

Lastly, to increase economic prosperity in the world and economic model that will be supported by the government will be based on having more young people than older people working, since the pyramid scheme is likely to fail, it should look towards embracing the ponzi scheme, which requires the young to be contributing more to the economy than the elderly. However, there is no such thing as sustainability while depending on both schemes (Mcmahon, 2019).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

References

McMahon, J. (2019). The World Economy is A Pyramid Scheme, Steven Chu Says. Retrieved from; https://www.forbes.com/sites/jeffmcmahon/2019/04/05/the-world-economy-is-a-pyramid-             scheme-steven-chu       says/?fbclid=IwAR2qJqZtRrwXivgdwUbtRec97G7V8BG6KQ0jJH0lkFYOTdXpOrWe7            Ezo6Ic#67b139db4f17

Balaam (n.d). Introduction to International Political Economy, Chapter. 11.