The world’s political, social and economic middle seems to be disappearing. In the USA the Republicans and Democrats take extreme opposite positions and refuse to budge. Paraguay’s leftist president took the country into disaster. After he was impeached, a staunch conservative took over. Venezuela’s upper class was so abusive that they created Hugo Chavez. You can’t get much worse than that.
Austerity is a principle that should be practiced when times are good. Instead, the government gets money and spends twice as much. An example is the Bush tax cuts that led to our situation today. Now our government, like those of Europe, is trying to cut all of their expenditures when they should be investing in infrastructure and putting people to work.
The gini coefficient in much of the world is dropping. Soon there may be no middle class. When the middle goes away from any structure the entire structure collapses. Are we headed back to the middle ages?
David Segrest is an International REALTOR in Charlotte, NC. His email is david@segrestrealty.com , His webpage is http://davidsegrest.com , and his international real estate blog is http://dointernationalrealestate.blogspot.com/
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