The human drama

These pictures upset me (click here). The human drama of what is happening is of historic proportions. Yet we worry about what I consider diversions.

No one talks why these protests take place. What is at the origin of all this discontent. Why there is discontent. Why people are upset. Why the press does not expand and explains these issues. Why Europe is in turmoil.

The people that you see in these pictures are all hard working people. With their dreams and hopes. Now all this is being shattered. Why? No one explains to them what really happened. I find a strong parallel with what really happened to GM.

I read on a magazine the word "corporatism". I was surprised because this is a fascists word. When corporations and the government become the dominant players in an economy. When economic and social engineering are accepted as the solution.

The financial markets are saying that these programs have failed miserably in Europe with wealth transferred to special power groups.Studies (reported here) show that economic growth is closely related by how much the government is the dominant player.

We worry about income differentials. Yet the government sponsors so many programs to be implemented by corporations such as ethanol or electric cars or green energy .......with our taxes.  We pay for these programs and no one talks about how you and I gain from them while the Euroopean politicians occupy medieval royal palaces.

These pictures show the human drama which is the result of decades of government intervention in the economic system and corporatism.

To understand what I mean try to open a pharmacy or sell newspapers as a private citizen in Italy. It is impossible unless you belong to a very special power group. I know a retired director of chemical research of a major chemical company who wanted to open a pharmacy. "George", he told me, "it is impossible. The major pharmaceutical groups control where the next pharmacy is going to be and who will own it".

Again, the pictures show what happens when the system stops working because of the failure of absolutely wrong policies. But no one talks about these policies and how to correct them. They only talk about raising more taxes and transferring more wealth to special power groups.

I know, this is the way the world has always worked. My skin is probably too thin.

George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
Ranked best market timer in the 12 and 6 months ending 8/20/10 by Timer Digest

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