I was just reading news related to a company called Southern Copper Corporation. It has just signed a “voluntary” agreement with the Peruvian government to pay them 775 Million dollars over the next 5 years for “Social Programs”. These phrases are in quotes because they are certainly not either. The reality is governments are incredibly corrupt and corrupting concepts. The arty is is here: Corrupt Government Pimps Out Citizens . It talks about the Peruvian government “brokering” a deal for the locals in the area of the mines to receive money because they feel left out of the commodities price boom that has occurred with copper.
If you read the arty you can get the details. Our reporters should be shot for trying justify such a scheme by using the “WindFall” term.
The simple fact that no matter what was done in this situation the Peruvian government being involved is a very bad idea. Especially for the Peruvians. In a previous arty I talked about how corrupting the influence of oil money is on these micky mouse governments. The simple fact is that the people who purported to have had a claim would have done their country a big service by keeping the government out. The Peruvian government is likely to take a hefty cut out for their “middle-men”. In addition it is sure to be spent on mindless crap that the middle-men can take yet another big slice out of. In the end the people who complained where probably local politicians also! So then THEY get their 2-cuts also. Now by my count its been sliced on 4 times by politicians. How much do you think is left now? Whhoops. Juan and Fernanda on the street would be much better placed to embrace rampant capitalism.
And god help Southern Copper-PCU because this ain’t gonna be the last time this banana republic comes around demanding money. This is simply stupid. Capitalism is just so much healthier. Why do latin countries all have these corrupt socialist governments? Want to argue with me ? The proof is in the people from these countries who want to come to the USA to live and work. They’re sick of the corrupt socialist dream. They do not want to be pimped out any longer. Liberals might complain about the companies and say that they exploit the workers. My reply is to the extent anyone is exploited is the extent to which we allow governments in. You can not escape the fact that governments willfully keep their people ignorant and without options afforded by rampant capitalism.
Its all kind of funny in one respect. The commodity boom has the feel of being over. Let’s see if they get “their” money.