Our Economies Last Safety Barrier is Reached and Things look Pretty Gloomy from here.
The economical crises we see and read about these days started with consumers that got broke and could not repay their banks. Which in turn lead to banks going bankrupt. Many banks got saved by the state, but now lately even states are going or are getting close to bankrupt.
Consumers ? Companies ? Countries ? What is next?
Who is left to save the last barrier of the economy?
When companies got bad the states invested in them making them go from publicly owned companies to owned by the state.
So what will happen when states get bankrupt? I guess one reasonable way to go is to sell companies owned by the state to the public. The management or managerial system have obviously not done a good job so it is time to let a new management in.
Another way we could go, that have also happened in the pass, is for the states to use force to confiscate people’s assets such as land and natural resources. That is a socialistic or totalitarian approach that I do not think will work in this new age of information technology.
In the long-run, I believe, pure Darwinism* will show that capitalism, an efficient system based on mans free will, are going to prevail over socialism, an inefficient system based on force and musts.
* The survival of the fittest. In this case the survival of the fittest economic system.