The involvement of the governments in bailing out private companies means that the governments are selling their future earnings: That means they are binding themselves to the income from taxation from the people of their country.
This will result in an even bigger collapse in the near future (say 15-20 years time).
Why?
There’ll be a revolt by the taxed few who are supporting the many.
1) Infrastructure is in decline in all major cities of the world (except Tokyo, Singapore and Dubai!), that means lots of public spending needs to be done to maintain living standards (ride the subway in Tokyo, New York and London and compare the different management policies behind them).
2) The aging – retiring – population means a burden on social services (and no tax being paid by those retiring)
3) Lower birth rates across the western world means fewer people to pay taxes, so the taxes must rise to cover expenses
4) The financial burden is now added to by this bail out – it has either changed a social transition from one financial, governmental system to another into a collapse of the present systems or it has brought forward a collapse of the present systems.
Fewer people and higher expenses means higher taxes, which means less incentive to do more, better, innovate.
Governments will spend more and more money trying to secure their tax income (more laws, more audits, bigger fines, more control of the population – protection of income).
People who are smart enough to see what is happening will leave. Those who don’t will stay, and because they stay it means they are not necessary that bright. This then has an effect on the quality of the society that remains – it slides to…?
The revolt will be a move: both fiscally and geographically. People will move their businesses online and “offshore”, and they will move their bodies to other countries looking for neutral environments to live in.
That will be the end of the industrial revolution.
Companies running in a Semco manner (http://semco.locaweb.com.br/en/) will thrive. All others will grind to a halt… A brave new world…
Those in their 50’s now won’t care. Those in their 30’s and 40’s will dabble with it. Their children will have to handle it. The children of their children will be born into it.
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