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Eureka: Why racist politicians?
by Jay Gutman
2016-12-05 11:28:14
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Let me tell you a secret. No one told me, I just found out. When a nation is a creditor nation, politicians tend to be right or far-right. When a nation is a debtor nation politicians tend to be left or far-left.

rac01_400_03Politicians basically put on a show in domestic politics to scare foreign debtors by talking about immigrants and foreigners. Who they’re really talking about are the nations who owe money, yet aren’t putting in much of an effort to pay it back. When a nation owes too much money, they tend to elect left-wing politicians and have pro-foreign and pro-investment legislation.

How do you strike a balance between the two? All nations can’t be creditor nations and all nations can’t be debtor nations. Around the world there are always creditors and debtors. The danger in politics lies elsewhere.

Around the beginning of the 20th century, most politicians were either landowners or former military officials who retired from business to start careers in politics. Such politicians used rough tactics, that is all sticks and no carrots, all guns and no butter. This was before information technology, common sense and education enabled most people to borrow and spend wisely.

When people learned how to borrow and spend wisely, politics became more civilized and you had a lot of lawyers starting second careers as politicians, although if too many debtor nations were acting nonchalant about their debt you would put a general or two in the government to make a point.

In the third phase, wise spending coupled with consumer-oriented societies meant business thrived more than ever. This is when major corporations started sending their men in politics, where politics became a mix of old lawyers and younger businessmen. The problem with businessmen is they sometimes ran the government like a business, not realizing that security comes first, then the environment, then politics, then society, then the economy (which you’ll leave to the private sector) in that order of priority. That is former CEOs neglected security and the environment to focus on the economy, and borrowed money without a clear plan to pay the money back and blurred the boundaries between business and politics.

So if your politicians are far-right or anti-immigration, keep in mind that they really just want their money back. If your politicians are pro-immigration, they really are easing the environment for investors to come help repay the debt. Same goes for us individuals, that is, if you’re in debt you might have Communist sympathies while if people owe you a ton of money you can be a tide Nihilistic. If you neither owe nor people owe you you’ll tend to be a centrist. There’s a lot more to that, which I’ll save for future columns.  

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