Politicians needing bankers to finance unsustainable political promises with ever increasing amounts of debt is the second biggest reason we are imploding. The primary reason we will implode is because politicians can never admit they are wrong, which is why the ECB just “officially” imposed negative interest rates to force people out of savings and into riskier or hard assets that they will lose (again) to the politically connected class. The US will do something similar to protect their govt jobs/perks/power when the NSA’s attempt to track down money only drives it further underground. Yes, the collection of everything on everyone, including the capture of faces and facial recognition is all about collecting money for a broke govt and identifying who is protesting against intrusive govt, which your govt wants to classify as domestic terrorism, and calls whistleblowers traitors and cowards.
Since our banks finance the promises of politicians, and thus have more leverage than European banks, US citizens will pay for the govt to kick their personal survival can down the road to serfdom. The payment will come in the form of higher bank fees, higher taxes, confiscation of pensions and retirement accounts, and anything else govt can get away with to hold on to power. Relying on people in govt to redistribute monies confiscated from other people ALWAYS results in fraud and abuses that disproportionately rewards those that are politically connected and misallocates the capital needed to improve a societies standard of living. It is the total productive capacity of a nation that produces wealth, with the main ingredient being human ingenuity and the natural desire to advance living standard. Everything your govt tells you is a lie to promote their self interest.
If the secret to success was anything but individuals being allowed to freely pursue their self interest, then Japan would never have risen to the second largest economy and Russia would be the world economic superpower. Resources and land, even in the best locations, will not amount to a hill of beans unless entrepreneurs turn the asset into something that people will value . The key resources of the entrepreneur are effort, persistence, and risk taking. If one does not possess these resources, the last thing one should do is restrain those that do, for it prevents the creation of products and services we all enjoy. Envy, jealousy, and sloth are some of the worst traits of the human condition. Wasted potential causes people to view other’s success as lucky, instead of recognizing the required preparation that was invested to capture an opportunity.
The claim that “Most of the value in a corporate stock or bond is not in the factory or product but in the facilities’ locations and in the product’s patents and copyrights” is not exactly true. Japan’s small land mass and lack of natural resources proved that it is the total productive capacity of a nation that produces wealth, with the main ingredient being human ingenuity and the natural desire to advance our standard of living (http://market-ticker.org/
Russia is another example of a nation with more than ample land mass and natural resources that has very little to show for it. Putin is still stuck in the old mindset of believing that more land leads to greater prosperity. He can take all the land he wants, but then what is he going to do with it?
Forcing everyone’s incomes closer together is like trying to get all the test grades in a classroom closer together. It’s a fruitless and unproductive exercise. Everyone is unique with different desires, interests, and motivations. Socialism taught us that you may end up with more company, but you’re still going to be miserable.
The income disparity problem is the result of unequal application of the rule of law and a rigged monetary policy, all of which is the result of career politicians that extort money for favors. Eliminate the career politician and you reduce the favors that has given us monopolistic policies in the healthcare industry, debt-based currency that benefits the banksters, endless wars that benefit the military industrial complex, etc.
Inventing different ways to get something for nothing not only does not advance a societies wealth and standard of living, it does not solve the underlying problem that ALWAYS oozes from central planning – POWER, which is so easy to abuse and exploit, eventually leaving a society CONSUMED BY CORRUPTION.
No matter what reform you prioritize, none of it will materialize until short term limits are forced upon the govt – unless of course you are in govt or dependent on govt, in which case you’ve already gotten the change you can believe in.
“The whole purpose of propaganda is to make the obvious seem obscure, or offensive.” – Stefan Molyneux