Rich Parasites

As a race, we humans have this seemingly self-defeating characteristic of facilitating wealthy parasites. These are people who are wealthy way beyond their contribution to the good of others. It is one thing to be providing someone with something of value and to be rewarded for that, but it is quite another to be ganging up to rape an economy through use of the coercive power of the state. History seems full of this latter situation. Today we have super-elites benefiting from huge government handouts while pressing matters of the common good go unattended.

Why should ANY bank be deemed too big to fail? Why should managerial ineptness be rewarded? Capitalism is decried by liberals who see the failings of the current western system, and they extend that failure to the free market philosophy. This philosophy is along the lines of what is described at http://gordonfeil.blogspot.ca/2016/11/why-and-how-free-markets-work.html. People see the excesses and immoral transfer of wealth from poor to rich that is occasioned by our system, and they think that this is a flaw in laissez-faire economic thinking. But the fact is that we do not have such a system. Instead we have governments interceding in the economy, with the threat of force, to bring about the new paper aristocracy. (see also http://gordonfeil.blogspot.ca/2016/11/normal-0-false-false-false-en-ca-x-none.html)

In a truly free market, anyone who does not provide what people want will ultimately fail to stay in business. Survival depends on producing what people want and distributing it to where it is most wanted. That produces the profits necessary for growth and continued existence as a business. And well it should because then the rewards are going to those who are most carefully converting resources into what people want. But now we have large corporations who obviously aren’t doing that efficiently. And rather than being allowed to die so that the resources they control could be released to others who would better convert these resources into solutions for people, they are assisted in perpetuating their ineffectiveness. Further, this assistance comes by coercive demands on the relatively poor to pay into the pot that feeds the folly. This is NOT laissez-faire economic policy. To judge free market economics on the basis of the performance of our economy is a mistake. 

People are frustrated and are now showing that frustration through referendums such as the recent one in Italy and the Brexit vote. People are demanding change. They are letting the super-elites know that they are no longer following the script. I think we are seeing the European Union unravel. I suspect it will end up being just Germany and a few east European countries that will economically be German colonies. Germany will peacefully accomplish much of what it tried 75 years ago to do militarily. I suspect that the Euro (which this week did as was suggested at http://gordonfeil.blogspot.ca/2016/11/dollars-dollarettes-and-interest-rates.html) is ultimately going to Zero, being replaced by new national currencies.