Let us take some figures for eg.
One dollar exchange rate = 40.
Purchasing power parity: 1:5, i.e. you can spend 5 times in India with as much money as in the US.
How should this be possible? Shouldn't labour be worth the same? Shouldn't a chocobar equal to one chocobar and not five in india?
Some countries develop, some don't, some at a faster rate. So inflations are different in every country. Exchange rates drop, rise. Parities change. But who started the exchange rate? Is it ruled by demand and supply alone? More countries believing in the US, and thus buyin more US dolllars so its worth increases? A faster path to production, industrialization and smarter tactics? You obviously can't just increase minting money, you have to create moneys worth, real money. Sell. Produce. Export. SO did these countries, the US, australia, NZ start earlier and got ahead in the race? Do the unemployment rate, trade balances, interest rates affect the dollar weakness? Yes, they do. So are we saying, we started out late, and hence are behing the US, and now until the US screws up, we are not going to beat them? Or NZ for that matter?
Secondly, its unfair for a global citizen to be living lives on parity. Parity should be one, such should be things. Third world, first world. Reaping benefits for a few smart tactics of a few ancestors in a few countries.
And this power is so great, that it can move Manmohan to sign a deal, or governments can fall on the orders of a US national decision. The pressure of the World bank, IMF, UN, and the G8, is too artificial but humongous enough to be gone against by anyone. Someone like Che or Osama or Sadam are upto it. Putting a goverment at stake in order to let some businessmen sell you uranium, when the only stake a hand is some thousand megawattt power. Sounds very goody goody and problem solver, but do those billions of dollars of dollars solve the problem of electricity? Aren't we self-sufficient or even smarted to buy it cheaper from someone else?
Are we doubting Indian scientists for developing the technologies for the same that we need some capitalist to sell us the same? We export everything under the sun in thousands of cruises and planes, and we get a plane of uranium in return, and it equals out all trade balances with a country. Wtf. Economic disparity and human worth are proportional in this world. Economic disparity is due to the production and advancement, while human worth is due to the exchange rate. Now, is it true that, if I want to steal some money, I better get a passport and steal in the UK and return home to become a millionaire!
The injustice in this world very well disguised by the industrialization. I will add to this post soon as I keep on searching on facts.
