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The New Era (2) - The Economic Cycle

Our economy is a complete industry. This means it's based on the cycle of mediating goods and money. For example, farmers produce wheat and get money which they spend to obtain their needs. The owner of the silo buys the wheat and converts it into flour and sells it to bakers, etc. Money completes the cycle of meeting requirements. This cycle will work when a high percentage of people have jobs and can attend this cycle.


Believe it or not, if we lack money, we will perish. For example, when a drought hits a farmers land, he is crippled and unable to farm as well. What does this mean? The farmer and the owner of silo and the baker, will lose their efficacy of work and face decreased money and finance. This poverty is naturally-caused.


Not all poverty is created through nature. Some is due to innovation. Science grows and the new technology replaces the old and the people engaged in previous tech will lose their jobs. Some of them go through other related jobs, but others will be almost in real trouble. So what can the society do to foresee similar phenomenon and provide a solution for?


 
 
 

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