This is the year of the election. There are something like 40 elections around the globe this year, from super powers such as the United States and France to small countries such as the Bahamas, where I reside, and Greece.
In France, Greece and the Bahamas, we have all seen the same trend — this being that the opposition party has been swept into power. Interestingly enough that in each case, the opposition party was more of a left-of-center party.
I think there is a lot of discontent. People know something is wrong. However, I think the problem is that people are just acting in a reactionary manner and not aware of the real solutions to their problems.
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In France, the problem is a stagnant economy and high unemployment. In Greece, it is an economic collapse and massive government cutbacks. In the Bahamas, high crime and once again high unemployment are the focus. In each case, the ruling party was ousted.
The natives are restless, as they say. In each case, these countries have weak economies. But like the phrase widely used during Bill Clinton's successful 1992 presidential campaign: "It's the economy, stupid."
However, the problem in each case is that I don't see any real answer to the problems. The Greeks' new leadership wants to fight cuts and now is pushing the country to the edge of collapse. In France, the socialist government wants to raise the tax on top earners to 75 percent (note to the French the rich are mobile and will move).
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However, with tough problems, you have to be willing to make difficult sacrifices.
In each case, the countries need major reforms and overhauls of their economies to make business easier. They need to streamline the unions and the overpaid government employees. You cannot just "throw the bums out" — then replace them with even worse
bums and think that will solve all the problems.
Unfortunately, I don't see a positive end to all of these situations. I just see more one-term governments which will be forced out as short-sighted voters look for quick solutions and are unwilling to make tough choices and truly reform their economies.
About the Author: David Skarica David Skarica is a member of the Moneynews Financial Brain Trust. Click Here to read more of his articles. He also writes the Gold Stock Adviser. Discover more by Clicking Here Now.
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