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Life Under Capitalism: Mass Hunger in the Midst of Great Wealth

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One Billion Hungry in 2009
For the first time in world history, more than 1 billion people will go hungry this year, as more than 4 million new people are going hungry each week. This isn’t because the world doesn’t produce enough food. “The shocking landmark will be passed – despite a second record worldwide harvest in a row – because people are becoming too destitute to buy the food that is produced.” (Independent (UK), 12/28/08) While the big banks have received trillions globally, global food aid is now at its lowest in 20 years, and the UN World Food Program says it has only received $1.5 billion of the $6.4 billion it needs to ease extreme hunger (Reuters, 6/13/09).

$120 Billion in One Room
In May, some of the world’s richest people, including Warren Buffett, Bill Gates, and Oprah Winfrey, held a secret meeting in New York to discuss the global financial crisis and their philanthropy. The estimated net worth of the handful of people in the room: $120 billion, more than the GDP of many countries.

Wealth inequality has grown to undreamt of heights in recent years. One survey estimated that the net worth of the richest 400 people in the U.S. is equivalent to that of the bottom 51%, or 57 million households.

While these billionaires discussed the future of philanthropy, a survey by the Bureau of Labor Statistics revealed that the poorest Americans are the most generous givers: “The poorest fifth of America’s households contributed an average of 4.3 percent of their incomes to charitable organizations in 2007. The richest fifth gave at less than half that rate, 2.1 percent.” (McClatchy, 5/21/09)

Women Hit Hardest by Crisis in Nicaragua
Since the beginning of 2008, more than 20 maquiladoras (export-oriented sweatshops) have shut down in Nicaragua, resulting in 25,000 job losses. Women have accounted for 85% of the layoffs. 38% of those laid off were single mothers, and 70% were heads of households.

“Also, in 85% of the cases the laid-off women did not receive any of the back pay or benefits due to them, and even though their labor rights were violated, they have been unable to obtain compensation through the proceedings established by law for such cases, nor have labor authorities forced their employers to live up to their obligations.” (IPS, 6/21/09) These plant closings have occurred despite Nicaragua having the lowest minimum wage in all of Central America, at $118/month.

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