For any ecosystem to be sustainable over time, we know that it must allow for 'survival of the fittest'. Nature shows that systems failing to weed out the weak and inefficient become unbalanced over time and eventually collapse. On the other hand, naturally occurring ecosystems that efficiently dispose of their weaker elements experience a gradual and continuous raising of the bar, becoming more robust as all members either adapt and become stronger or fall by the wayside. This natural law can be seen in all aspects of human endeavor, from sports or athletics with the setting of new records regularly to the rapid advances in science occurring over the last hundred years or so. The economy, being a form of human interaction (one in which we all participate) is equally governed by this basic law of nature.
During the last century, a large portion of humanity came face to face with the indisputable fact that no group of individuals (regardless of how well-intentioned) is capable of making effective decisions on the proper allocation of economic resources as we witnessed the dramatic collapse of communism. As a result every former communist regime has liberalized its economy to a greater or lesser degree. In a strange twist of irony, though, the former bastions of free market capitalism now practice overt State intervention in the form of large bailouts and subsidies and have become greatly influenced to keep passing laws favoring powerful lobby interests over true free markets. In such an environment, it should really come as no surprise that the system as a whole now teeters on the brink of collapse!
What we are about to experience will be seen in time as an inevitable result of placing our trust into the hands of government and large corporations, to become wiser than the free market in allocating resources efficiently so as to make our economic system stronger and more robust - no way, no how! Rescuing the TBTF's rather than allowing nature to take its course can only result in one outcome - a system-wide weakening and ultimate demise with tragic though predictable consequences for us all!
Because the worldwide economies are now so interconnected, few if any countries will escape major consequences. People who once upon a time grew up in a culture of thrift and self-reliance now find themselves more and more reliant upon the State for everything from food stamps on to healthcare - most will find it all too difficult to survive in the new, unforgiving environment and many will starve. The State is now preparing for the riots by passing draconian laws and readying detention facilities!
Friday, January 27, 2012 12:32In A Nutshell: Corporatocracy Has Replaced CapitalismCapitalism Fixes Problems & Preserves Democracy: