The hidden source of discontent in Egypt: The Corporatist state

Peruvian economist Hernando de Soto explains:

"As in most developing countries, Egypt's legal institutions fail the majority of the people. Due to burdensome, discriminatory and just plain bad laws, it is impossible for most people to legalize their property and businesses, no matter how well intentioned they might be.

The examples are legion. To open a small bakery, our investigators found, would take more than 500 days. To get legal title to a vacant piece of land would take more than 10 years of dealing with red tape. To do business in Egypt, an aspiring poor entrepreneur would have to deal with 56 government agencies and repetitive government inspections.

All this helps explain who so many ordinary Egyptians have been "smoldering" for decades. Despite hard work and savings, they can do little to improve their lives."

Cui Bono? The incumbents, credentialed and connected. Corporatism (aka domestic Fascism) as practiced in third world countries or the United States always benefits the powerful. Always. The Tea Party is our attempt to throw off our parasitic overclass.

When President Obama and I lived in Jakarta it was effectively a fascist state. I guess that's where The One learned his 'moves'. Hat tipCarpe Diem.