Creates wealth and poverty

Social Justice and Poverty

Despite advances in some areas, the current economic system does not create prosperity for everyone, but rather solidifies existing distribution gaps: Globally as well as within individual countries, the gap in access to resources, education, work, assets and income is widening.

Questions

  • What does fair distribution look like? What are the standards of distributional and gender equality?
  • Which aspects of an economic and financial system would be central to ensuring distributive justice, gender equality and the avoidance of poverty?
  • How can prosperity, quality of life and distributive justice in industrialized countries be maintained or increased at the same time, and how can economic development and a catching-up process be made possible for all countries around the world?
  • With which instruments can distributive justice, gender equality and the fight against poverty be effectively ensured globally and nationally?

Possible actions

  • Minimum income and fair working and living conditions in general that enable a good life
  • Measures that guarantee free access to social benefits
  • Use of large leeway in the tax system, e.g. reduction of work-related taxes, introduction of wealth-related taxes,. No increase in social security contributions and VAT, as they are already a disproportionate burden on people with low incomes
  • Expansion of the debate away from a pure tax discussion towards a discussion about social justice
  • Strong focus on labor market measures, e.g. questioning the conventional working time model
  • Development of innovative new models to cushion social risks
  • Breaking prejudices, e.g. by addressing human dignity or promoting human rights
  • More democracy, e.g. more participation rights for people who have experienced poverty
  • Advocate a global approach to put the fight against poverty and social exclusion in a broader context

More information can be found in Policy Papers!

Production follows labor costs

In order to keep up with global competition, Mr. Klein is constantly on the lookout for potential savings. In the previous year, 40 employees, mostly women, were given notice. The competitiveness of the company has only increased to a limited extent, but the company cannot keep up with the competition from China due to the high production and labor costs.

The company produces plastic noise insulation panels for brake pads, which are manufactured in a standardized but very labor-intensive production process. After intensive calculations by Hans Klein, the management makes a decision: The entire plant is closed and production is relocated to Asia. Distribution continues in Austria. 60 employees lose their jobs due to the closure of the plant.

The sound insulation panels will be produced in Bangladesh from next year. More than eleven million people live in the metropolitan area of ​​the capital Dhaka, who moved from the country to the mega-city in the hope of a better life. But this dream is only fulfilled for a few: Most of them live in slums on the outskirts and work in companies like Mr. Klein's. The workers who will manufacture the noise insulation panels in the future earn an average of 30 euros per month. As much as Mr. Klein spent on the bottle of wine to toast with his wife to the salary bonus that he will receive as a result of the successful savings measure. But Mr. Klein knows that his bonus is only a fraction of the profit that the company's shareholders will receive from relocating production to Asia.