Quote:
Originally Posted by Thor
I'm in the camp of capitalism sucks but its the best system we have.  |
The problem isn't capitalism, it's in how it's administered in a democratic system. What has to be done on the debt/public expenditure front will not be done in the US and in European countries because their electorates lack the backbone and the will to endure life after austerity measures. They will keep in power governments that will do things for short term reasons. What ends up happening is half measures are taken to push the problems further into the future (Automaker Bailout, Bank bailouts, unemployment insurance, stimulus packages, government health care). Ultimately as the problem gets passed on it gets bigger, until the point at which the capacity to push it into the future will be no more and it blows up. Hence what already happened in Greece.
Yes there will be different world in the future, but it certainly will not be one in which capitalism and social darwinism are restrained out of existance but rather ones in which
both the positive and negative consequences are felt. We have tried to insulate ourselves collectively from business cycle losses and other bad times of the economy by government debt. It only works until you can no longer borrow any more.