So I think you all have heard the fact that third worlders make on average $2 a day. This seems very hard to me. If you have a nation where the average person makes $2 a day how the hell could you tax those people enough to afford anything. Even the poorest countries have
>basic infrastructure
>a police force
>a military
>politicians
>roads
How do they afford all that if they can get 1 penny out of people everyday?
3rd world as in Brazil and Switzerland or third world as in Central Africa?
Exports
Central and East Africa. Somalia for example
They export them for dirt cheap and the profits are given to corporations and politicians.
Receiving cuts of drugs/arms/human trafficking.
Exports: Oil, Agriculture, Lumber.
Money from allowing mineral mining.
they dont pay for first world overhead
>Receiving cuts of drugs/arms/human trafficking
Except corruption money goes to politicians, where does the nation get money for police force, military, all that.
>exports
Profits mainly go to corporations
>money from allowing mineral mining
But the profits are so low. How much money do you think an average mine would generate for the government? 500K a year?
Then it is based on Exports. The money that goes into the economy is not enough to sustain it. They are living artificially.
What they DO to prevent the world from swallowing them is having companies mining under lease.
And all places where they work are also under lease.
So the money coming in is exclusively from other countries.
>Central and East Africa
China builds the roads so they can get the resources out easier. They also need a local workforce to get the goods. They can pay them peanuts but if everyone is sick due to lack of clean water they will spend the small amount of money needed to install wells or water systems.
I was in Mozambique earlier this year and China was building a road so they can access a local mine easier. The old road was basically pot holes lined up in a row for 100 miles. The new one is actual asphalt. You'll find similar all over Africa for the same reasons.
>Then it is based on Exports. The money that goes into the economy is not enough to sustain it. They are living artificially.
The workers are paid like $5 a day, because the country is corrupt the corporation pays like 2% tax. How much would one mine generate for the government? Like 200k a year?
How does the government afford to pay a police force?
1)Its all relative. All that things you mentioned are cheaper there. Building a road will cost in indiam much cheaper than in america- shitty technic, low wages etc.
2)Not all people there make 2$ a day, mostly farmers and small rural towns. There must be ok cities with relatively wealthy folks, even if they are 5% of big ass population. In russia income and expences in shitty town can be 5-6 times smaller than in moscow
3) Living in villages or slums dont require that expensive infrastrucure or police.
It's called handouts
Taxes
They have many mines.
They are not markets, they are mining nations. They work exclusively for multinationals and for under lease mining contractors.
>1)Its all relative. All that things you mentioned are cheaper there. Building a road will cost in indiam much cheaper than in america- shitty technic, low wages etc.
That's what I was thinking, but in a globalized economy you being poor doesn't lower the price of outside wages. The guns the police use, their badges, the equipment to make the road, the cars, all came from outside. And outside the thirdworld a car would cost a shit ton for them. It just doesn't seem like they'd have enough money for that
>)Not all people there make 2$ a day, mostly farmers and small rural towns. There must be ok cities with relatively wealthy folks, even if they are 5% of big ass population. In russia income and expences in shitty town can be 5-6 times smaller than in moscow
But you still need a police force, roads, firefighters, and farm subsidies for those small towns.
>Living in villages or slums dont require that expensive infrastrucure or police.
It requires a lot of police, there is a lot of crime.
>How does the government afford to pay a police force?
Chinese have to pay the government for the resources they extract. Even if they government embezzles 90% they still have enough to pay cops $3 a day to keep the peace. And then the military $4 a day to ensure nobody can threaten them so they keep embezzling money.
They tax the corporations that work there(mostly mining companies).
Most people just dont benefit for it.
Handouts from the first world you mean? It's not enough to sustain their economy and often hurts them
You can't tax people if they make no money
If you have that many mines wouldn't that drive down the price of metal so much they would make almost nothing? Surly not every African country or every poor country can do that or metal would become worthless.
They pay very little taxes. And for a country to run the people have to have roads, a police force, homes (even though they are small).
>You can't tax people if they make no money
They dont the average person at all. They tax the bussineses there.
>If you have that many mines wouldn't that drive down the price of metal so much they would make almost nothing.
International market has a huge demand for metals.
It never drop too much
>You can't tax people if they make no money
In most of these soceities theres usually an abundant amount of millionaires and billionaires
Those companies pay in dollars, and the mining is controlled by the international market`s demand.
The companies control how much they mine and they pay taxes per ton, not per time.
Furthermore they work in fast foods, international car companies and multinationals who pay taxes for being there.
Roads are almost inexistent, except for the chink roads.
Most people build their homes with bad materials, like discarded wood and such.
Police is almost inexistent too. Only in big cities
>they tax the businsses there
Small businesses make barley any money to begin with since the locals have no money. Large businsses can afford to pay off the corrupt government
>International market has a huge demand for metals.
For refined metal, metal ore is dirt cheap and the smelting is done in richer countries.
They don't really pay taxes though, they can pay off the corrupt government
I understand the export part but the fast food and car companies don't really make sense since the locals can't afford to buy anything.
Most poor areas dont have police or firefighters, and no one gives a fuck.
Do you think african firefighter or policeman is equipped just like canadian or american ? Just find their budgets. They use cheapest cars and equipment, local manufactured shit or buying outdated from another countrys. Just look at some documentals, some latin coutrys use old soviet cars and shit
>roads are almost inexistent
Then how does anything get done, how do the workers get to the place they have to work? How do the farmers transport their crops
>Most people build their homes with bad materials, like discarded wood and such.
Where does all this wood come from?
>Police is almost inexistent too. Only in big cities
How come it isn't anarchy run by gangs?
They place the car companies in there in order to sell it to the world.
It is cheaper to manufacture in there and then sell it to the rest of the world because labour is cheap.
This cheap labour is still paid.
Those factories pay their employees, and they use the money to go out and have dinner at McDonalds, because it is a fancy thing that they can do sometimes.
So the companies pay taxes to the government and the people make profit for the companies through their cheap labour. And with their salary they purchase things that come from other multinational companies.
But there has to be some policing and firefighting since you need to keep the poor people alive to work in the factories and mines. Also buying anything offshore costs a shit ton since even $500 is a lot in third world terms.
>The guns the police use, their badges, the equipment to make the road, the cars, all came from outside. And outside the thirdworld a car would cost a shit ton for them. It just doesn't seem like they'd have enough money for that
There's a lot of shitty old jalopy equipment floating around out there in the third world.
>But you still need a police force, roads, firefighters, and farm subsidies for those small towns.
>It requires a lot of police, there is a lot of crime.
I think you're vastly overestimating the effectiveness of third world rural police, and neglecting the fact that subsidence farming doesn't require government subsidy.
As to firefighters and roads....
Well have you ever seen a photo of a rural African firetruck? I know I haven't. Here's a picture of a rural African road.
Dude.
You have no idea what the real world is like.
Macdonalds costs like $2 a burger
If they make that much everyday do they only buy one burger a day and spend 100% of their income on it?
Dude.
You are seriously misinformed how the world works. Do you understand how 3rd world country governments operate?!?! The politicians are in bed with military/police/businesses. It shifts around.
Don't be so short-minded. You don't understand the real world.
>I think you're vastly overestimating the effectiveness of third world rural police, and neglecting the fact that subsidence farming doesn't require government subsidy.
If it doesn't require government subcity then the price of food would be higher. THe only reason the price of food is as it is is due to government subsidizing it's production.
What do you mean the real world?
I know the politicians are in bed with them. But im wondering how the country gets the cash to operate anything.
>What do you mean the real world?
he has to ask
what happened to Canada?
I'm asking because I know the real world. I'm taking business first year uni and from my data the Canadian government hardly has enough money to run. In fact Ontario with all its industry and wealth goes 10 billion in debt every year. I can't imagine how a third world country could handle. Some of my conservative friends say it's because Ontario has such a generous welfare program but welfare is like 4% of the budget.
I work in manufacturing and we make 10MIL+ a year I'd imagine a mine makes well over 200k
>Freshman
Find some sort of publicly disclosed Cash Flow statement from your government. Submit the Canadian version of "Freedom of Information Act" (FOIA) for one if you can't find it.
10 mil a year? How much of that does your company pay in taxes 1 mil? Now imagine a corrupt third world country your company would prolly pay 1 thousand.
>freshman
It's late at night why would I do that?
Not all of them earn that much. Only a great part is living in complete and utter misery
i make 300 bucks a day, can i move to these countries and get luxury apartment?