Why are we doing so poorly?

Payrolls grew by 88,000 workers, the smallest gain in nine months and less than the most-pessimistic forecast in a Bloomberg survey, after a revised 268,000 February increase, Labor Department data showed today in Washington.

The number of people not in the labor force which in March soared by a massive 663,000 to a record 90 million Americans who are no longer even looking for work.

The economies of Europe and the US are doing poorly. Why? The reason is subtle. Read the excellent historical book Why Nations Fail. The book shows that nations stagnate when there is too much concentration of power. It looks like we have too much concentration of power in Washington and Brussels. They are overprotecting us by not allowing "creative destruction", the book suggests. We need to allow failure if we want to grow and give us a different point of view.

It looks like governments are becoming too intrusive. What they are doing is too generous and for good reasons. But it looks like all the good intentions are backfiring.

The problem is that the smart people know how to survive creating even bigger inequality among the citizens.

George Dagnino, PhD Editor,
The Peter Dag Portfolio.
Since 1977
2009 Market Timer of the Year by Timer Digest
Portfolio manager

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