How many homes are needed globally and how will they be financed?

Some of you have asked how many homes are needed now. The answer is hundreds of millions. This blog describes a viable economic development strategy to meet this need based on the same process that has created prosperous economies in the past. To adopt the proposed strategy a financing program must be established for a  Global Home Building Industry to finance builders in emerging economies that have laws providing for Protected Private Property Rights.  It would be an  international financing program for the development and construction of hundreds of millions of new, quality homes as part of newly developed communities that include retail and commercial buildings.  It will create a billion or more new jobs and eradicate severe global poverty. Latin American leaders alone estimate that they desperately need a minimum of 54 million homes to house their people properly; not including future population growth. It is almost impossible to estimate how many homes are needed in India, Malaysia, Africa, Southeast Asia and other emerging economies because the need has been neglected for so long.

If you read the data published by the World Bank on poverty you will find the conditions have been worse. When 1,000,000 are constructed in the United States it energizes not only the United States economy because of the increase in employment it increases imports. Imagine what would happen to the global economy if 5,000,000 home were constructed in emerging economies in one year. Many of them of course would be less expensive but the rate of 5,000,000 home per year we would never catch up with the need. If 5,000,000 were constructed every year in Latin America it would take ten years. By then millions more would be needed. Think about how this would apply to Africa, India and others.

In the past sixty years industrialized countries have been expanding their manufacturing capacity to meet a general increase in the demands of an increasing population of affluent product consumers. All of this economic growth has produced an affluent class of people that is approximately thirty percent of the people on the planet. Of the approximately 6.6 billion people on the planet nearly 4.3 billion have not been participating in the increase in prosperity. For them there has been a lack of housing, an increase in poverty creating major health problems, epidemics and needless deaths. Many live in nations where the governing leaders live in luxury while the vast majority of the people are not permitted to participate in the investment economy.

The economic disparity within the struggling nations has increased as well as the disparity between them and the more industrialized countries creating inhumane living conditions for billions of people. All of the wonderful and loving humanitarian efforts to help people trapped in these economies have made only minor improvements when compared to the total number of people that are born, live in abject poverty and then die year after year.

This proposed economic strategy eradicates the severe poverty and adds billions of people to the product consumer class over the next twenty-five years. It increases the global demand for manufactured products and energizes the global economy. To eradicate poverty there must be a substantial increase in employment for the poor. It has been proven that for a population of 3 billion people it is not possible to increase prosperity by increasing manufacturing employment in underdeveloped countries when global demand and employment is limited while wages are set at a minimum to increase manufacturing profits.

The proposed new paradigm for global economic development energizes the global economy by establishing an increase in global demand for manufactured products to a level equal or higher than our current capacity to manufacture products. It is a process that energizes the global economy while eradicating poverty expeditiously.

In addition it has been projected that the population on the planet will increase by at least 3.0 billion over the next forty years. It is also expected that the population increase will occur primarily among the lower income families in underdeveloped countries. If this were to occur while poverty was being eradicated it would serve to further increase the demand for consumer products. However, it should be remembered that history has shown that as societies become more prosperous birth rates diminish

If you are interested in the eradicating severe global poverty the time has come for us to act. The Economist magazine and others have reported that currency wars have started between nations because those holding large sums of currency are concerned about how inflation or deflation both locally or in other countries is going to impact their holdings. There are efforts being made by some nations to insure the currency of other nations loose value in an attempt to protect the currency being held on the side line. The knowledge that there are enormous amounts of capital in the global economic system that are languishing because of the lack of viable investments creates a perfect opportunity to make direct investments in mortgages on homes in the emerging economies.

The lack of investment opportunities is because more housing is not needed in United States at this time and corporate stocks are not attracting investors because the limited consumer demand for new products is impacting sales and profits. The proposal to establish a global home building industry not only provides investment opportunities it will increase the global employment and demand for consumer products that energizes manufacturing. What is needed now is for those who read this blog and are interested eradicating poverty begin to teach others about how a  Global Home Building Industry is a viable economic development strategy for the increasing global employment.