Top Down Or Bottom Up?

[Noesdeayer]

In most of L.A. there seems to have been a belief that capitalist economies or capitalist policies don't work well at lifting the bottom of society up.Most (with the notable exception of Chile) have not wanted a trickle-down approach that leads to great access for the highly educated,for those who are internationally mobile,who can learn from and tap into the sources of wealth in the developed countries,but,rather, a bottom up approach that starts with delivering the goods to people and providing them with the resources they need to live better but from the "get go",so to speak.In my view this would be true for Brazil and for Argentina as well but in different and distinct ways.Real personal growth is an absolute imperative for any people anywhere to provide an economic system with the necessary "buy-in" or personal commitment for that system to be successful whether it be free market or state directed.Moreover,the system must provide enough "ladders" or channels thru and by which people could lead themselves out of poverty into a middle income level or the opportunities that a good free-market of incentives could provide.Free market policies need time to become effective and in most countries the poor could not,and would not wait that long.I believe that In Brazil with Cardoso and then Lula this bottom up approach was notably successful in achieving the "buy-in" of a majority of the population and I don't believe that they will lose it because as we known their democratic institutions are maturing and functioning well.In Argentina the bottom up used was Peronism which got a big "buy-in" basically from most of the lower and some of the middle income groups but,due to its protectionist economics,did not and still has not delivered on the necessary growth either national or personal and for that reason it hasn't proven itself to be genuinely economically viable.Any comments?

 

[GMXam]

Poverty is such a tough problem to solve in any economy. There are so many obstacles that impact an individual's economic progress besides the provision of resources. Number 1 obstacle is themselves; flip a coin and you have two options for interpreting the world around you as full of limits or full of obstacles; believing there is an out or that one can make it out is huge. Many times, one need's someone else to believe it for them before they can convince themselves of this. Second obstacle is their social support; as much as they want the best for their loved ones, change in a loved one can be a threat of the "loss" of that loved one; or to the individual, a threat of "loss" of what they know to be secure and safe - the social support that may be complacent with how life is for them or just does not believe there is a way out.

Resources can help those that have or are willing to work past these two huge obstacles in a sustainable and continuous growth manner. No matter which economy, there are always resources. They may be in different forms, but they exist whether publicly or privately subsidized. Being resourceful is an attribute useful in finding these resources. There are always people who want to sincerely help others, especially those who want help.

We can chat more about my comments in person at coffee chat, if you like.

Edit: I know I didn't address the capitalism question...to me, the middle class is the more important factor. The belief in growth is necessary, but complacence is also a requirement to keep the pool of beneficiaries at the top small and returns large.

 

[gusgutier]

Since the sixties , some economists (thise now gathered in Cepal) made a distinction between central capitalism and dependant capitalism. In short, doesn´t works the same in a industrialized or developed country and in undeveloped one

 

[Pensador]

Pick a niche become one of the best in the world at it. Key... do not look at the money it will fallow. Money always fallows the best at what they do so do not make money the objective. Make the objective being the best. Of course before you pick a niche evaluate your talents and pick one that suites your talents. If you are short and fat you may not make a good basketball player. But if you are short and fat and love cooking well there you go.

You must be willing to pay the price for being one of the best. This is not so hard because 99% of humanity defaults to what is the least they can do to get along. Which gives those of use striving to be the best a huge advantage over the rest of the population. Becoming one of the best can take 10 to 20 years in many cases and can involve for some very difficult seasons in life.

In short that was the bottom up plan that worked for me. It may not suit everyone but it beats the hell out staying at the bottom.