Innovation transforms various aspects of our lives, sometimes creating wealth and having a positive impact. However, during this process, wealth concentration and the spread of poverty can also occur. It is crucial to find ways to address these issues.
1. The Beginning of Innovation and the Emergence of Wealth and Poverty
Innovation began when humans started making tools. Innovative tools brought victories in battles and made hunting easier. Tribes that won battles or succeeded in hunting became wealthy, while those that did not fell into poverty. This is still true today. Individuals or companies that succeed in competition through innovation accumulate wealth, while those that do not end up in poverty.
2. The Impact of Innovation on Wealth and Poverty
Innovation provides convenience and superior power, increasing competitiveness through high productivity and low costs. Individuals, companies, and societies that win in competition dominate the market and concentrate wealth. On the other hand, those that fall behind in innovation become obsolete and spread poverty. This process leads to the concentration of wealth and the spread of poverty.
3. Capitalism and Innovation
Capitalism and the market economy are systems that stimulate innovation through private property and profit. While they accelerate the concentration of wealth and the spread of poverty, they also have an efficient profit distribution system through the capital market. The disparity between rich and poor existed even before capitalism and seems to have originated from innovation and competition.
4. Practical Solutions to Overcome Poverty
It is a realistic and efficient alternative for individuals or companies that lag in competition due to innovation to own shares of innovative companies. For example, if traditional merchants displaced by Shinsegae had bought Shinsegae stocks, or if Haetae employees who were eliminated in competition held Lotte stocks, they could have maintained economic stability.
5. Efficient Distribution through the Capital Market
It is also a good idea for nations and organizations to operate sovereign wealth funds to hold shares of innovative companies worldwide, thereby increasing the common wealth of their citizens. Receiving corporate inheritance taxes in the form of shares and managing or distributing them through funds is also an efficient method. This way, both the state and its citizens can hold competitive assets, helping to overcome poverty.
6. A Strong Nation and Prosperous Citizens through Innovation
The state must complete the system of capitalism and the market economy, promoting unlimited and fair competition. By guaranteeing private property and profit, stimulating innovation, and building an efficient distribution system through the capital market, we can create a strong state and prosperous citizens. Individuals should accumulate shares in innovative companies, especially when they are in poverty, to become the owners of those companies.
Conclusion
By not stopping the engine of innovation and establishing an efficient distribution system through the capital market, we can create a wealthy society. If both individuals and the state build systems to share the benefits of innovation, we can overcome poverty, don’t you think?