The economic situation has deteriorated over the last three decades. The middle class is on its way to extinction.
The responsibility in the Western Countries lies mostly on four powerful groups:
- The greedy sharks:
Are those whose greed drives them beyond limits. They could be individuals, groups, corporations or institutions. Their main goal is to make larger profits no matter what. They manage to find ways to save on taxes. They influence legislators into changing laws in favors their businesses. For that purpose, they lobby and finance political campaigns.
- The unions:
Originally emerged to defend employees and workers rights. With time they grew in power and became selfish. Through the years they claimed, a step at a time, more and more benefits for the unionized workers they represented. They put more pressure on employers going from a strike to another… Up to a point where industries in highly competitive markets could not bear the extra costs involved to continue their operations.
- The legislators:
People elect legislators to serve their respective constituencies. Torn between the lobbying of the greedy sharks and the unions pressures, the legislators end up satisfying the demands of both powers neglecting the needs of the rest of the population.
- The government
Pressured to balance their budget, the government main target becomes to collecting more taxes. For better control of taxpayers, the government machine grows beyond borders. No efforts are spared to create new ways to scrutinize the smallest of the transactions even if this involved stepping on grey areas. Armies of inspectors were unleashed to criminalize small businesses pushing them to declare bankruptcy.
It is a no-brainer that:
- Big corporations can:
- Make bigger profits.
- Pay fewer taxes.
- Drive small businesses out of their markets.
- Small businesses are doomed to fail in a market where:
- Large corporations with bigger edge cannot be pushed out of business.
- Legislations are made to measure in favor of the mighty players.
- Governments are in pursuit of more taxes they cannot afford to pay.
- Unions are divided into two categories:
- The governmental, para governmental and construction unions are still in full power. Their demands being always on the rise.
- Industry unions: remain in power until the specific market segments are wrestled away by competing open markets.