Government Isn't the Only Problem - The Daily Reckoning
The Daily Reckoning by Bill Bonner
On This Day - 27 April 2013
PRINTER FRIENDLY | ARCHIVES
Government Isn't the Only Problem A  A  A


- By Asad Dossani, Author, The Lucrative Derivative Report


Asad Dossani
It is a common feature for many of us to blame the government when things go wrong. When economic growth is too low, we blame the government for not pushing through economic reforms. When they try and push through reforms, those that stand to lose put up a big fight. Or when inflation is too high, it must be the government's fault.

On a global scale it is the same story. In Europe, we blame governments for taking on too much debt, and thereby causing the Eurozone debt crisis. In the US, political bickering between Democrats and Republican created manufactured crises like the debt ceiling standoff. If only government would do their jobs properly, we would not have such economic problems. The basic feature in most of these situations is that government is the problem.

Earlier this week, we got a stark reminder of how important government really is when it comes to the economy. In Dhaka, Bangladesh, a textile factory collapsed and killed over 200 people, mostly factory workers. The collapse was due to the fact that the building was constructed in a shoddy way, with safety regulations completely ignored.

We might be tempted to blame the Bangladeshi government's incompetence in failing to enforce building regulations. But there are other culprits. For example, there is the owner of the building who himself ignored the regulations. And the factory bosses, who did not evacuate the employees despite large cracks in the building witnessed the day before the collapse. And finally, we have large Western clothing companies that buy from such factories without enforcing safety standards.

When it comes to any economic or other problem, we can easily blame the government. The government isn't comprised of any single person, so no one is really blamed anyway, and very little gets done about it. But let us not forget that there are others involved. Every time there is corruption, certain individuals or companies are involved, not just the government.

At the end of the day, we must also keep in mind that governments are elected by the people. And if we keep electing incompetent officials, we must share some of the blame. For a system to be effective, everyone must take responsibility for whatever they can, because blaming the government alone isn't going to solve very much.

It's Not Just About Picking The Right Stocks...

Take a look at the pyramid alongside...

This simple structure holds the secret to investing success!

That's right! You could read a dozen books on how to pick the right stocks, and yet never really create solid wealth from your portfolio.

And most of the times, the reason has something to do with this pyramid.

So, what's this all about? Find out all about this simple yet powerful investment rule here...

is a financial analyst and columnist. He actively trades his own and others' funds, investing primarily in currency, commodity, and stock index derivative products. Prior to this, he worked at Deutsche Bank as an analyst in the FX derivatives team. He is a graduate of the London School of Economics. Asad is a keen observer of macroeconomic trends and their effects on global financial markets. He is deeply passionate about educating investors, and encouraging individuals to take part in and profit from financial markets. To put it colloquially, he wishes to take Wall Street products and turn them into Main Street profits!

Disclaimer:
The views mentioned above are of the author only. Data and charts, if used, in the article have been sourced from available information and have not been authenticated by any statutory authority. The author and Equitymaster do not claim it to be accurate nor accept any responsibility for the same. The views constitute only the opinions and do not constitute any guidelines or recommendation on any course of action to be followed by the reader. Please read the detailed Terms of Use of the web site.

Get The Daily Reckoning directly
in your mail box.
Just enter your e-mail address » 

Read our Privacy Policy and Terms Of Use.

Equitymaster requests your view! Post a comment on "Government Isn't the Only Problem". Click here!

16 Responses to "Government Isn't the Only Problem"

v.vijayaraghavan

May 20, 2013

i accept up to some extent , but Govt should take action those who are responsible . That one is missing & only blamegame is there in all issues .

Like 

Pradeep

Apr 29, 2013

I didnt elect these governments. Twice I voted and it was for some one who I found genuine and has a sense of social responsibility. They didnot win. third I didnt vote as I didnt find the candidates worthy. Now tell me why everyone is saying "you" voted them. India is good only under some one who is iron handed but at the same time has some sense of dharma. We are not fit for democracy.

Like 

chandra

Apr 29, 2013

Yes. Be the change you want to see in the world.

Like 

Ajay Gupta

Apr 29, 2013

You observe the type of vehicles used by all the MPs etc all of them are? It is like all one caste or religion is not terrorist but all terrorists belong mainly to one class, same are our present leaders.Who can involve in corruption the one in a position to use his discretion.

Like 

Ajay Gupta

Apr 29, 2013

Yes we are equally responsible for all the mess, but our Govt has to take bigger blame as they have the means and power to check such things, but in a country where the bull itself start eating the fence what to say about it. Secondly the leaders have to lead by examples. But this govt .is always blaming the opposition, what they were doing when the opposition was in power, it shows all of them are hand & gloves, or why they did not oppose the policies and pointed their misdoings at the time.

Like 

E Vishwa Nathan

Apr 29, 2013

Ah! finally a column that does not blame the government alone. Till now nobody had been talking how unscrupulous the businessmen are, building shoddy buildings, roads and other products and sevices. Can any government control such activities when even god cannot. If a country has to improve it has to improve at he grassroots level, by the people themselves.

Like 

P K De

Apr 28, 2013

Right! We are the people who elected selfish people with negative calibre and character, corrupt and also anti-nation feeling. This is the only reason that the country suffers most.

Like 

ajit

Apr 28, 2013

very obvious but overly simplistic. governments are expected to provide governance and when they fail to do so cases of the kind mentioned happen. the problems associated with electing the right kind of representatives are too well known to be mentioned again but whosoever is elected has to shoullder higher responsibility than the average hapless citizen.

Like 

sreedhar

Apr 28, 2013

It is true that partly govt is responsible for the ills in the economy.
Again at every stage you can see corruption. Only when something serious happens we wake up. Any and every time it is corruption that is root cause of all the ills. Any person/organisation trying to make an issue of corruption we dig up the skeletons which might have been hidden or remotely connected to such individuals/orgnisation.
As long as the corruption/favoritism/manipulations in each aspect of our governance and public life is not tackled we keep coming up with the situations which are similar with more vigour and frequency.
We really can't expect any new dawn with these kind of things at local, state, national and international levels with happenings around us.

Like 

dilip

Apr 28, 2013

penalise the Bribe Taker and Bribe Giver...also...BOTH. then hopefully better sense/complioance may Prevail.

Like 
Equitymaster requests your view! Post a comment on "Government Isn't the Only Problem". Click here!

Recent Articles:
Trump Takes a Beating
August 18, 2017
Donald J Trump, a wrasslin' fan, took a 'Holy Sh*t!' blow on Tuesday.
Which Gods Will Bring Down the US Empire?
August 17, 2017
Mr Trump is in the White House and the gods are in their heavens; what's not to like?
Will They Haul Off Trump's Statue, Too?
August 16, 2017
All across the country, the old gods become devils. New, gluten-free gods take their places...
Farm Loan Waivers: Why Bad Economics Makes for Good Politics
August 14, 2017
It is because the negative effects of the waivers aren't clearly visible.