the average working person earns about $7,380 per month
or US$13,978, per year. This is based on GDP (or gross domestic
product) per capita estimates for 2006, as published in
the last budget statement.
GDP per capita, is roughly a reflection of the earnings
of the average worker. If the average person reading this
feels satisfied that such a figure reflects his real position,
then the wage is credible. If however, more people grumble
that such a figure is incredible, or too large, then we
need to scrutinise the disparities in wages.
On an international level, some 75 per cent of the worlds
population lives in developing countries, with below average
GDP per capita. So only 25 per cent of the workers make
more than the average income. But they must make a whole
lot more! In addition, some 40 per cent of the worlds
population does not earn enough to put adequate food on
GDP is a basic idea in common use that is identified with
growth in the economy. It is supposed to represent the value
of all goods and services that are generated within the
country. In fact it is the selling price of the things we
In other words all our labour is pooled together, and then
equated to the goods or services we provide and a value
placed on what we sell.
The economists say that is a reflection of economic prosperity.
Our individual experience is irrelevant in the equation.
This is because social problems and standards of living
are not necessarily easily adjusted with growth statistics.
If crime levels went down, productivity does not increase,
so GDP does not increase. If we had more leisure time, we
would not produce more.
If our standard of healthcare was improved, we would work
more hours and produce more. If traffic congestion were
to be stymied, we would produce more, since we waste less
When we work more, we get paid more, and we need to save
more. But the first off-shoot from more pay, is always more
Because we do not concentrate on saving more, we never generate
a sufficient store of capital. It is like a Third World
If you do not generate capital formation, you cannot expand
your individual estate, you cannot become an entrepreneur,
your ability to expand is constrained. You remain dependant
on others to fuel your happiness.
Occasionally, when the capital can be accumulated, there
are a host of other problems. One common problem in developing
countries is human resource mismanagement. Another failing
is a lack of indigenous ideas or innovative minds. Foreign
ideas and concepts are imported to solve local indigenous
problems. Further, wastage is a common fibre in the tapestry.
So poor nations remain poor and rich nations grow richer.
It is not until we have the muscle to recognise that capital
formation is an individual intention, and that it is a tangent
off the poverty cycle that we can gather the nerve to rise
up. It is in this recognition that visionary and entrepreneurial
spirits and born, to be foisted upon the sleeping, who never
learn that wealth is there for the working!