This is a very interesting article by Alexander Friedman, published by Project Syndicate. Alexander Friedman is Global Chief Investment Officer for UBS Wealth Management. It’s a RECOMMENDED READ in my view. Check it out!
Personally, I identify with the trend towards greater statism in the West; the Economist this week comments that France is increasingly statist.
Since 2008, the capitalist model just has not been functioning properly. Large businesses and the wealthy are are going from strength to strength but small businesses are struggling to obtain finance at competitive rates and European businesses are increasingly burdened with bureaucracy emanating from the EU.
Personally, I am a passionate believer in market-oriented and market-driven businesses which have consistently outperformed their peers. I agree that state meddling with capitalism is inherently risky. However, in Europe’s case there are large distortions because of Germany’s political views on monetary and fiscal policy dominating the rest of Europe. Meanwhile, the banking sector in depressed Southern Europe is still not functioning effectively; small businesses are deprived of funding to finance working capital and expansion.