Workers' Liberty

It used to be that the Financial Times was said to be read only by Capitalists and Communists. The Internet now provides a wider opportunity to see what is going on in the capitalists’ minds. In this piece by Dr. Marc Faber an investment analyst based in Hong Kong he looks at potential problems in the world markets due to liquidity. But his illustration of the unequal effects of this, and how the rich benefit is interesting, and fairly honest.

Cracks in the Financial System

We would disagree with some of the basic assumptions about the “Bushes” being “inept”, but the writer is a Libertarian so its necessary to look past the ideological baggage, and concentrate on the economics, and to a certain extent the politics, for example, the recognition here of the way the capitalist class uses its wealth to control the state.

“Let's say that on an island there are two tribes. Ninety-nine percent of the population are the "Bushes" and 1% are the "Smartos". The two tribes arrived on the island at about the same time and had little capital at the time. So, initially, both tribes worked very hard in industry and in commerce to acquire wealth. But because of the Smartos' superior education and skills, their frugality, and also partly because of their greed and immorality, they soon acquired significantly more wealth than the Bushes, who, for the most part, were likeable but quite inept. After 50 years, most of the island's businesses were therefore in the hands of the Smartos, who make up just 1% of the population. Being clever, the Smartos generously gave some of their wealth to the tribal leaders of the Bushes, who controlled the entire government apparatus, the military establishment, and much of the land.”