By Way of Conclusion
The Private Club of Globalization
Most people outside U. S. view capitalism as a private club, a system which only benefits the west and the rich
19th century royals were a one big family and connected through globalization, also, they were related by blood
Lester Thurow (a US economist) in 1941 points out:
“The crisis of 1920s and the great depression of 1930s bought capitalism to the edge of extinction”.
Since 1920s Latin American tried 4 times but failed on both government and consumer levels.
Government level by:
Privatizing government assets
Overhauling tax system
Consumer level by:
Importing goods like, English tweed suits, T-birds, learning English and French
Only 25 out of 200 countries produce enough quantity of capital to benefit from the division of labor
Today, most of the former Soviet bloc nations look very similar to Latin America as they both have:
Strong underground economies
Flagrant disregard for law
80% of the above population cannot generate capital because they have trillions of dollars in dead capital
Assets of the majority are not documented by the bureaucracy, they are invisible and sterile and most people cannot participate in the expanded market
Macroeconomics programs in the developing countries does not address the fact that most of the people does not have the property rights
The policymakers did not realize that the people are the fundamental agents of change and they did not focus on poor and have no idea about the “class”. One of their pundits said:
“the ability to comprehend, however dimly, how other people live”
Great capitalist system cannot avoid concentrating capital in a few hands as Karl Marx foresaw. Class confrontation still exists. “the Underclass” is the majority in poor economies and in the past, when their expectations are not met, they bought elites to their knees as in...