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Why can’t democracies manage their money sustainably?

And then, finally, we have a clear view of the three biggest problems in finance-driven, democratically constituted capitalism: First, how can a debt-ridden economy grow if a large part of demand in the past was based on debt, which is now to be reduced?

The second major problem of modern capitalism is this: How can the unleashed financial markets be reined in again, and how should the G-20 countries come up with joint rules for major banks, which are their financiers and creditors, and for markets, which punish and reward these countries through interest? How much freedom do financial markets need to serve the global economy as a lubricant, and what limits do they need so that banks, shadow banks and hedge funds do not become a threat to the system?

Third, how do governments mediate between the power of the two sovereigns, how do they reestablish the primacy of citizens over creditors, and how does democracy function in debt-ridden countries? How can politicians react without burdening countries with more debt, and how can they reduce that debt? In fact, how can they even govern anymore in this prison of debt? In the past, future revenues were mortgaged, in municipalities, states and the federal government. This now makes it difficult to structure the present and the future. Today only about 20 percent of the federal budget is truly politically available, as compared with 40 percent when Schmidt was still in office.

It is always only at first glance that the world is stuck in a debt crisis, a financial crisis and a euro crisis. In fact, it is in the midst of a massive transformation process, a deep-seated change to our critical and debt-ridden system, which is suited to making us poor and destroying our prosperity, social security and democracy, and in the midst of an upheaval taking place behind the backs of those in charge.

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Actually it worked pretty well, and exported properity all over the globe.

When the socialists and social dems get into power, with profligate giveaways, that is when it all goes to hell.

Difficultas_Est_Imperium on November 17, 2012 at 6:27 PM

Greed. But it’s not a social problem.

davidk on November 17, 2012 at 6:30 PM

Gibsmedat!

Dack Thrombosis on November 17, 2012 at 6:31 PM

Because Democracy is the God that Failed...

Someday the American Right is going to wake up to the Dark Enlightenment…

Rights and equality are fundamentally incompatible. If you want rights, cannot have equality, because some people do not deserve, do not particularly want, and cannot competently exercise, real rights. You are not going to make a below average IQ person with short time preference into a real citizen, independent, free, self sufficient, and property owning. If some people are going to be free, they are going to be more free than such people.

And if you let such people, inferior people, vote, they will always vote against other people’s rights and other people’s property, being themselves incapable of exercising rights, and themselves too feckless and destructive to have nice things. If they vote, they vote to drag everyone down to their own subhuman level, a desire politicians are eager to fulfill.

ninjapirate on November 17, 2012 at 6:33 PM

Our REPUBLIC was doing fine until socialism was introduced. The Democrats use welfare to buy votes, and they can never buy enough votes. That’s why we are broke.

Axion on November 17, 2012 at 6:36 PM

Our REPUBLIC was doing fine until socialism was introduced. The Democrats use welfare to buy votes, and they can never buy enough votes. That’s why we are broke.

Axion on November 17, 2012 at 6:36 PM

Socialism isn’t the problem… Democracy is.

ninjapirate on November 17, 2012 at 6:38 PM

Why can’t democracies manage their money sustainably?

As Benjamin Franklin said:

“Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote.”

And, as Alexander Fraser Tytler said:

“A democracy cannot exist as a permanent form of government. It can only exist until the majority discovers it can vote itself largess out of the public treasury. After that, the majority always votes for the candidate promising the most benefits with the result the democracy collapses because of the loose fiscal policy ensuing, always to be followed by a dictatorship, then a monarchy.”

Resist We Much on November 17, 2012 at 6:39 PM

davidk on November 17, 2012 at 6:31 PM

This guy has got to go.

BallisticBob on November 17, 2012 at 6:40 PM

You have to bake sustainability into the cake.

In a constitution, you need to add a balanced budget, a flat tax rate that applies to everyone regardless of income, no public unions – in other words build a document that is explicitly anti-progressive/socialist/fascist.

Rebar on November 17, 2012 at 6:41 PM

Well the United States of America is a Republic! But it seems that is not to be any longer?

We are now under bho/team and his total control of our money, land, businesses, homes, and oil/gas/shale/forests/and everyting we once held as OURS!

We have to thank those who think WE don’t need what we make but needs to be give to those for the ‘common good’! You voted for this and by golly you are NOT gonna like your vote!
L

letget on November 17, 2012 at 6:42 PM

Once the virus called “Free Stuff” takes root. It’s all over.

We’re done.

stenwin77 on November 17, 2012 at 6:44 PM

As Benjamin Franklin said:

“Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote.”

I’m not directing this at this exact quote, but I have a problem with quoting some of the founding father’s antipathy to “pure” democracy… party-based representative democracy is the absolute easiest system there is to hijack and the system where true political power is the most hidden.

Pure democracy would be better than what the founding fathers left us… and we would have been much better off if people would have listened to George Washington we didn’t have political parties.

The problem with party-based representative democracies is that too many people elevate their party identity over national identity and then one party decides to “elect a new people” with immigration.

ninjapirate on November 17, 2012 at 6:46 PM

How can politicians react without burdening countries with more debt, and how can they reduce that debt? In fact, how can they even govern anymore in this prison of debt?

You talk to people like adults and lay out the problem and solution. Act sooner rather than later.

Of course if you’re running against someone willing to buy, lie and smear his way to victory along with a fawning press on his side you’re going to have a small margin of victory. So you cant get out hustled on the ground game, you cant have your party saying idiotic things and you cant be soft and subtle about your opponent.

Dash on November 17, 2012 at 7:32 PM

You have to bake sustainability into the cake.

In a constitution, you need to add a balanced budget, a flat tax rate that applies to everyone regardless of income, no public unions – in other words build a document that is explicitly anti-progressive/socialist/fascist.

Rebar on November 17, 2012 at 6:41 PM

Yep.

Term limitation would be another great addition to your list.

Anti-Control on November 17, 2012 at 7:33 PM

Rights and equality are fundamentally incompatible. If you want rights, cannot have equality, because some people do not deserve, do not particularly want, and cannot competently exercise, real rights. You are not going to make a below average IQ person with short time preference into a real citizen, independent, free, self sufficient, and property owning. If some people are going to be free, they are going to be more free than such people.

And if you let such people, inferior people, vote, they will always vote against other people’s rights and other people’s property, being themselves incapable of exercising rights, and themselves too feckless and destructive to have nice things. If they vote, they vote to drag everyone down to their own subhuman level, a desire politicians are eager to fulfill.

ninjapirate on November 17, 2012 at 6:33 PM

Muy interesante, but what to do…

yubley on November 17, 2012 at 7:36 PM

Those votes are not going buy themselves. Pandering and talk of free stuff and you get turtle tunnels and 16 trillion in debt.

tjexcite on November 17, 2012 at 7:40 PM

ninjapirate on November 17, 2012 at 6:33 PM

*Gasp!* Moldbug.

Punchenko on November 17, 2012 at 7:53 PM

Simple answer: Because capitalists don’t seek government jobs.

fossten on November 17, 2012 at 8:11 PM

Why??..people will trust and give power over their lives to vile crooks. A point comes when they no longer need your trust, because they have the power to force compliance and demand your money.
Everyone knows this is true.

Mimzey on November 17, 2012 at 8:13 PM

Actually it worked pretty well, and exported properity all over the globe.

When the socialists and social dems get into power, with profligate giveaways, that is when it all goes to hell.

Difficultas_Est_Imperium on November 17, 2012 at 6:27 PM

And how did those socialists and social dems get into power? By being democratically elected. Democracy fails.

Sojobo on November 17, 2012 at 9:27 PM