Go Along To Get Along

In an article in the Wall Street Journal about a thriving capitalist banker who lives amidst confiscatory populism in the current Hugo Hegemony in Venezuela, we can learn a lot about capitalism and survival.

First, we learn that everyone, every country, every social system in the world has one thing in common. And always in common despite rhetoric to the contrary.

Everyone is a Capitalist. Every Country is Capitalistic. Every social and economic system in the world is Capitalistic.

What is different is how leaders are elected. The US practices a republic style democracy. Various forms of democracy exist and are practiced with varing degrees of transparency from a little to a lot. There are dictatorships that promote socialism and populism, but only for the vote, and to run the country they use their individual disproportionate political power.

But they are all Capitalists.

The differences between countries is what are the relevant forms of capital, who controls how capital is exchanged and who owns the capital , even if only temporarily.

In the Middle East, oil is the primary capital and unfortunately most of it is controlled by various authoritarian regimes and most unfortunately by religious dictates rather than secular ones.

Second, we learn that Victor Vargas who says he’s “been rich all my life” is not deterred by whoever is in power or what their policies are. Besides the privilege of lifeline connections, early wealth, pretty good instincts and a lot of tolerance for risk, his most important “survival strategy is remaining agnostic about politics” according to John Lyons writing for The Wall Street Journal.

The well connected, the very rich and the politician in power in most countries will all do well financially under most circumstances. Most who are well connected will get more connected and most of rich will probablygrow that richness, no matter what opposition in power because they have tools the vast majority of the world population, from poor to middle class, do not have.

We hear a lot about the growing divide of rich and poor and a lot about who looks out for the little guy including the majority of the working class. The answer is no one. Those who proclaim to do that very publicly are usually getting richer. Witness Michael Moore, Bill O’Reilly, Bill Clinton and on and on.