Democracy and Capitalism share a common trait that is turning them into a problem and a threat to society. And the common thread is their short term focus which itself is a function of the prevailing world-view and the systems, laws and institutions that represent it.
This short term perspective allows both politicians, banks and other corporations to profit in the short term by “legally” stealing from the future. The losers are the general public.
If you wonder why Governments around the world have been bailing out banks rather than bailing out tax payers the relationship between Goldman Sachs and the Greek government is a good case study.
In 2001 Goldman is purported to have made a $300m profit on a deal it structured for the the Greek Government that allowed it to legally side step European Union rules on debt and deficit ratios. And as late as November 2009 a team from Goldman apparently arrived in Athens with another similar deal.
The New York Times has a good story with more details titled – Wall Street Helped to Mask Debts Shaking Europe
Gikas A. Hardouvelis, an economist and former government official who helped write a recent report on Greece’s accounting policies encapsulates this succinctly – “Politicians want to pass the ball forward, and if a banker can show them a way to pass a problem to the future, they will fall for it”
Where does this leave the average citizen? Neo-classical economists are in denial of the fact that economic growth is dependant of new debt rising faster than GDP. They are even in denial of the role that credit plays in economic growth.
With the general public and business at debt saturation levels the reality of the bankruptcy of the the capitalist model and many states has been hidden temporarily by governments who have taken up the role of providing the new debt required for economic growth. This is simply putting of the day of reckoning and setting us up for an even harder landing.
And you probably don’t have to guess to hard to work out that their accomplices that are facilitating this – and making big bonuses for doing it – are none other than the banks.
It is no wonder that the Tea baggers in the USA are a growing movement. I expect that similar movements will gain is strength across the world as the economic situation inevitably declines. The public is losing trust in its politicians – democracy is under threat.