Strike
To pay interest on the loans they had asked, traders had to raise prices. Wage earners complained that wages were very low (when prices could buy less with your wages). Employers refused to pay higher wages, saying it would fail. Farmers could not get fair prices for their produce. Housewives complained that food was very expensive.
And finally some people declared themselves "on strike", something that had never been heard before. Others had been hit by poverty, and their friends and relatives had no money to help them.
Most had forgotten the real wealth all around them - the fertile land, large forests, minerals and livestock. They could only think about money, which always seemed to be missing. But they never questioned the banking system. They believed that the government was driving.
The economic situation deteriorated. Employees were sure that the bosses were taking much profit. Employers say that workers were vague and were not doing their day's work honestly, and everyone blames everyone else. Rulers could not find an answer, and besides, the immediate problem seemed to be fighting growing poverty.
Social assistance
The government then launched welfare schemes and made laws forcing people to contribute to them. This angered many people who believed in the old idea of helping your neighbor will.
"These laws are nothing more than legalized robbery. Get something to someone against their will, beyond the purpose for which will be used, is no different from stealing."
But each man felt helpless and feared going to jail if not paid. These welfare schemes gave some relief at first, but while the problem of poverty increased again and more money was needed for charity. The cost of welfare schemes rose higher and higher and the size of government grew.
Most of the rulers were sincere men trying to do my best. They did not like asking for more money of the people (raise taxes) and finally had no choice but to borrow from Fabian and his friends. They had no idea how they would do to return it. The situation worsened, the parents could not pay teachers for their children. They could not pay doctors, and transport companies were going bankrupt.
source: economia.com.mx
2011/08/04
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