Wednesday, February 02, 2011


The people of Tunisia and Egypt are demonstrating great hope. Unfortunately they have placed their hope in things that are bound to fail.

The people of these countries believe that democratic governments are the answer to their problems. The Egyptians have demonstrated particularly strong faith in their military forces. These are both false hopes.

The people protesting want jobs and they want cheaper food. Democratic governments do not produce jobs. Employment is produced by employers. What these countries need is entrepreneurs and employers who can create employment.

Food shortages are emerging all over the world. Government subsidies for biofuels have exacerbated the situation. For the next few years, rising food prices will be the norm. Poorer countries will suffer most, as the rich countries make sure that there is food on their tables.

Egypt and Tunisia cannot escape this problem. Democratic governments will not be able to hold down the price of food forever, as attempts to control prices will lead to shortages.

Whatever political change occurs in these countries, their economic situation is like to decline. The jobs and cheaper food for which people are desperate, will not suddenly emerge. The promises of political leaders are a false hope.

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