Most of us accept the fact that the current crisis and the "insider" political system is a direct consequence of the deregulation of the financial industry that was started by Ronald Reagan. Human greed, disrespect for others lead to the fraudulent "financial ponzi" scheme which in 2008 imploded at huge global cost.
(For the unaware: try Ferguson's documentary "Inside Job" for a sensationalized recap)
I already have the sequel well understood and wish to share:
How the capitalist political democracy failed because of uncontrolled government spending, including, but not limited to, outrageous civil service pension payouts and unsustainable future commitments. This led to the taxation to death of businesses, employees and entrepreneurs thereby effectively removing the "capital" needed for the growth and creation of our businesses.
Government attempts to stimulate the economy rather than slash expenditure effectively transformed the system into a Centrally Planned Economy, not entirely unlike the various previously failed centrally planned communist economic systems. The lack of investment and private venture capital gets replaced by corrupt and ineffective government stimulus, grants, subsidy and growth schemes. As politicians don't know how to create value inside businesses, they instead create giant ponzi schemes in order to show benefits. Thier advisors, mainly bankers, lawyers and academic advisors make millions in fees. These politically motivated funds are created by "investing" citizen's tax contributions, pensions and savings funds, many of which are already technically broke.
Many examples of such "ponzi" schemes abound. A good example is the recent Sarkozy FEMA 3 Billion Euro slush fund of which 1 Billion comes from the national pension fund and the rest is disguised industrial tax credits. The fund is "needed" to prop up the failing automotive parts manufacturers, who lack reinvestment capital, largely because they are taxed to death by social security, sales tax, corporate tax, etc. Simply put, after paying a major French bank a fortune in fees, the FEMA will stick money into these companies, group them together and in 5 years put them on the Paris stock exchange.... to be bought by whom ? You guessed it! The National Pension fund and the other "simulus" funds, naturally at the inflated price of a publicly listed company!
Given the appalling track record of government run business, one can only conclude that the value created by these government chosen "investments" will once again be ZERO, fees to banks millions and another bail out or worse. Consequently we can expect the current generation of 40 - 60 year olds being forced to live with their grown up children as their saving effectively disappeared.
The economy ends up being driven by politicians and their sponsors, whether that be, financial, military or trade union the fact remains that the capitalist system that created the developed countries economic wealth (albeit at the time socially and ecologically imperfect), is dead !
Who carries the bag? Ordinary and often uninformed citizens, many preferring to benefit from unsustainable handouts rather than bite the bullet, lower taxes and vote the rascals out of office!
In some countries such as France over 40% of the adult working population is paid directly or indirectly by the government, many with unsustainable benefits. As this grows to over 50% of the voting population, only a minority will be left to vote responsibly... and lose.
Now, who would like to write the next chapter... ?
(For the unaware: try Ferguson's documentary "Inside Job" for a sensationalized recap)
I already have the sequel well understood and wish to share:
How the capitalist political democracy failed because of uncontrolled government spending, including, but not limited to, outrageous civil service pension payouts and unsustainable future commitments. This led to the taxation to death of businesses, employees and entrepreneurs thereby effectively removing the "capital" needed for the growth and creation of our businesses.
Government attempts to stimulate the economy rather than slash expenditure effectively transformed the system into a Centrally Planned Economy, not entirely unlike the various previously failed centrally planned communist economic systems. The lack of investment and private venture capital gets replaced by corrupt and ineffective government stimulus, grants, subsidy and growth schemes. As politicians don't know how to create value inside businesses, they instead create giant ponzi schemes in order to show benefits. Thier advisors, mainly bankers, lawyers and academic advisors make millions in fees. These politically motivated funds are created by "investing" citizen's tax contributions, pensions and savings funds, many of which are already technically broke.
Many examples of such "ponzi" schemes abound. A good example is the recent Sarkozy FEMA 3 Billion Euro slush fund of which 1 Billion comes from the national pension fund and the rest is disguised industrial tax credits. The fund is "needed" to prop up the failing automotive parts manufacturers, who lack reinvestment capital, largely because they are taxed to death by social security, sales tax, corporate tax, etc. Simply put, after paying a major French bank a fortune in fees, the FEMA will stick money into these companies, group them together and in 5 years put them on the Paris stock exchange.... to be bought by whom ? You guessed it! The National Pension fund and the other "simulus" funds, naturally at the inflated price of a publicly listed company!
Given the appalling track record of government run business, one can only conclude that the value created by these government chosen "investments" will once again be ZERO, fees to banks millions and another bail out or worse. Consequently we can expect the current generation of 40 - 60 year olds being forced to live with their grown up children as their saving effectively disappeared.
The economy ends up being driven by politicians and their sponsors, whether that be, financial, military or trade union the fact remains that the capitalist system that created the developed countries economic wealth (albeit at the time socially and ecologically imperfect), is dead !
Who carries the bag? Ordinary and often uninformed citizens, many preferring to benefit from unsustainable handouts rather than bite the bullet, lower taxes and vote the rascals out of office!
In some countries such as France over 40% of the adult working population is paid directly or indirectly by the government, many with unsustainable benefits. As this grows to over 50% of the voting population, only a minority will be left to vote responsibly... and lose.
Now, who would like to write the next chapter... ?
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