How capitalists profit from the refugee crisis

Over the last few months, the scale of the unfolding humanitarian crisis coming out of Syria . In the backwaters of the news we have had a steady, but muted patter, of stories of rickety boats sinking, with dozens of people losing their lives in the process. After the publication of one photo, some of the more apathetic sections of society have been jolted into action and are now doing headless chicken impressions asking “[what can we do]” or asking for others to “[just do something]”. Such reactions are natural, as may be observed (by analogy) in someone waking up from a deep sleep by an unpleasant action, such as water being poured on their head.

What we end up doing is going to buy supplies to give out. In this act of purchasing, we are contributing to the revenues of the shops (mostly supermarkets) who provide those products. While they will have paid a wholesale price, they still take a gross profit. Their business model is such that they end up with their overheads are fixed, not variable, so that the additional gross profit flows down to their operating profit pretty much unscathed.

With this extra profit, it is likely that the share price increases (or it mitigates a fall, if there are other, bigger, factors at play) and so those who already own shares in the company have their wealth increased (or their losses ameliorated).

It sucks that that’s the way the world that has been constructed before we ever had a chance to have our say in it. It’s a rigged game, designed to favour the rich, to further enrich them. What is personally frustrating is that the spread of investments in a pension fund mean it is quite possible that I have an indirect investment in those who gain from such a human tragedy. If you have a pension, you may too.

Yet can it be right to then turn around and refuse to help others because some might profit it? I’m not sure it is, so I pick what may not be the lesser of two evils, but the less visceral of two evils.

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