Against Precariousness

On 9 July 1849, Victor Hugo pronounced his speech "destroying misery" at the French Legislative Assembly. Whether in France or in the rest of the world, no one has succeeded, except China from 1980 to 2019, before the Covid crisis.In one side, in order to share a common direction with all countries we choose to work on the precariousness. Our study period lasts from 1990 to 2015. We define the precariousness as the maximum rate between: the rate of people in extreme poverty ($5.5 per day in purchasing power parity 2011), the relative rate of poor people (OECD data, persons with incomes below 50% of median income, after tax and transfer adjusted to accommodate household size), the unemployment rate (Eurostat, ILO definition). We observe very different changes in precariousness that we want to explain.On the other side, we use the concept of Wealth that is the economic translation of Standard of living on a long period. In other word Wealth is the discounting sum of all the revenues less the reinvestments. We use the property we have demonstrated that is the Wealth is proportional to Capital thank to a Valorisator that is a generalization of Tobin Q= (roc-g)/(wac-g) (Tobin gives the formula for g=0).. Where Q is limited to dividend and Debt interests, the Valorisator encompasses all revenues including taxes,(Valorisator = (a-g)/(wac-g)) where a*Capital=revenues).This way allow us to understand how Wealth is creating and could decrease abruptly, including Debt effects (wac).The way to manage wealth creation each year is very different from gdp management: investment brings durable revenues and jobs, not one year expenses.We can’t admit to having more than 3 billion people in precariousness and 3 million of children under 5 years old who die a year in the world. We have to give them back a life and hope.