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Management  2012 

Why Globally GDP, Trade, Profits, Wages, Employment Decrease and Why Poverty Increases?

Keywords: global economy , GDP growth , profit , credits , poverty

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Abstract:

The purpose of the paper is to propose a scientific explanation ofwhy GDP, trade, profits, wages and employment have been globallydecreasing and why poverty has been globally increasing betweenthe 2nd quarter of 2008 and the 3rd quarter of 2009. I explainthese facts in a scientific manner, that is, by deriving thepresent state of the global economy (crisis) from the principles ofthe present global economy (predominately organized in a capitalisticmanner). I therefore prove that the crisis necessarily followsfrom the way the present global economy functions. I arguethat the reason for the crisis is the fundamental contradiction betweenthe purpose of companies (increasing profits) and necessaryways in which companies try to increase profits, and that theconsequences of this fundamental contradiction are triggered bya general lack of credits.

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