Santiago, Beirut, Bagdad, Catalonia, Hong Kong: Are capitalism and democracy failing us?

Is something going on globally that shows what's dramatically wrong with the our economic system? Are capitalism and democracy failing us? Or is it something more about equity in the system? With a global exchange of information almost instantaneously young people feel connected where ever they are.

Young people are both globalists and nationalists with a sense of ownership of their nation and the world because they know it's their future.

My son Zachary has been going to school in Santiago Chile for this year. He mentioned to me how hard it is to live, how the perception is that the economy really does not benefit most people. He saw this in the small things, the grocery stores, the transportation system. Everyone complained about how the wealth classes own and control most of the wealth.

When a 5% fare hikes occurred on the Metro in Santiago it kicked off a massive series of demonstrations. Riots erupted almost over night. He sent videos of people hitting cans and staying out all night. And then, this Saturday a demonstration with nearly two million people!The problem is the global system has allowed for larger and larger aggregations of wealth to a very small number of people with out equitable distribution to workers and regular folk. "The risk is" throwing out capitalism or trying to regulate it to death (thank you Elizabeth Warren).

The benefits of capitalism are unarguable. China had 600 million people go from incomes of $300/year peasants to middle class in 50 years. The largest redistribution of wealth in history do to capitalism (not communism or socialism)

The extreme is Venezuela. A completely socialist economy that has shrunk to 10% of what it was, a brutal dictator and military and a starving nation. We must have capital markets, reinvestment and social services that benefit everyone. The suppression of demonstrations and killing and hurting regular people is not ever acceptable. What all the demonstrations from Caracas, to Bagdad to Beirut to Santiago to Hong Kong to Moscow and even Paris are about is one thing.

We must have capital markets, reinvestment and social services that benefit everyone

The sad thing is Chile is doing all the right things to grow their economy and create more wealth but they've done a terrible job of providing social benefits and perceived economic opportunity for all classes. It this turns into a socialist revolution everything will go to hell and the military will take over and guess what, everyone will loose. Economic collapse, end of Chile's robust export agricultural market and the death of their educational system.

Young people want opportunity, fairness and equity

Young people are fed up with corrupt powerful elite who control the economy and politics and keep the game unfair for the regular folks. This will not end soon anywhere. Economic growth has to result in better income distribution of capitalism will fail. According to Adam Smith who is so often misquoted is markets work when everyone benefits. When the few benefit the players in the game leave or revolt.

The global choices are clear and we must do something to balance capital creation with equity and the rule of law that benefits everyone - not just the elite. Their sense of nationalism is fueled more by a sense of feeling connected and having an opportunity and not being dominated by an elite whether they are socialists, communists, capitalists or an Islamic state. A sense of equality is what world is demanding now.