Structural Change


2009 begins with a structural change, the economy meltdown just began with an unemployment to have effect from December 2008 and taken full speed in the come months of 2009. Not just the fact the assumption the greed is a good drive for the market and self regulation of the market, the analogy is to ask the wolf to take care the sheep and not to prey the sheep. The fallacy is to assume the system: the market in the long run has a tendency to concentrate the power into the few, and the consequence is incompetence and nepotism.
The educational system is good example to look into, where there is base an educational hierarchy. Where the managers, PhD , MBA are being training in the ivy league universities and they trickle down the philosophy into the rest of the system, since they become the educators, the free market and free market approaches.
The fundamental errors committed in the educational system, from the creation of hedge funds to computer driven market. Nobel prices won by written equations describing this market illusions. The illusion of free market self-regulation and cooperative capitalism where access to the market for everyone, using retirement accounts, with any volatility in the market, the fallacy in this assumption, but more fundamental, the welfare of society base in 19century capitalism, where the wealth concentration in the hands of the few.
Carnegie the steel Baron in his book of Gospel of money following the Calvinist tradition, the wealth is power was God given, his Philanthropy when to the free library system. Carnegie will prefer to see th revenue into libraries any wage increase to a workers, since his argument will use the money to be drunk.
The 19century created inequality and speculation the boots and few benefit. With FDR using Keynesian Economics to stop a working class revolt, but created the middle class, but the fundamental failure, the cure will work for sometime, but the haven work is not enough, because not system or state can not control the market, the fundamental fact the managers, the share holders owners always will benefit in the few hands, in the long run Keynesian economics can not over come. After the FDR and Great society, deregulation was necessary to stop economy stagnation reversing into concentration of the wealth in the hands of the few, a cycle can not be brake into assume the market to be control or market itself is self regulated system.