Groom - thanks for you reply. It has caused me to throw together a note or two. Please keep in mind that I am perhaps having too much fun and a beer as well.

1)I was not aware I used 'profit is not a dirty word' in other posts but I will take you up on the suggestion and make it my mantra.

2)I thought the markets were part of the real world. My mistake.

3)40 years to remodel cities? Our cities are very dynamic and will continue to be remodeled. I really doubt all the development we have seen is due to the need to adapt to cheap energy - but you do illustrate my next point that the price of energy (especially before taxes are added) is always going down over the long term.

4)The cost of a gallon of gas at the pump is actually much cheaper than it was 60 years ago if you take inflation and % of income into account. I suspect strongly that this trend will continue - that damn flexible market will make certain of this to the point of providing energy at a fraction of today's price in the next 20 years. Keep in mind that consumption will skyrocket during this time - and this is why the price of energy will go down - although it may no longer be oil - so what.
Certainly you can introduce enough taxes in the EU to ensure the cost outstrips inflation but that is not the market (real world) determining the price now is it? The politics of guilt & Envy make this possible so watch for it. The real test will be when gas is not longer used and there is no more polution at all. Do you really think that will be the end to the current GAS and Pollution taxes? Right - they will find a way to raise taxes to keep the problem at bay or to pay off the cost of all that help they provided.

5) The standard of living in this world has been improving since the dawn for friggin time. The pace in the last 50 years has been astounding. I do not see the next 20 years as slowing down much less turning around. Go ahead and dig yourself a hole and hide for 20 years just in case I am wrong and you are right.

6) Your argument against the Dow is that only one company name is the same and all the others are gone? What has been the average rate of return for market investments? What other 'market system' do you propose? One which is part of the 'real world'? When I look around and open my eyes really wide I see pretty much everything around me was created by private enterprise. What little the State has added it has done using the revenue private enterprise and the employees who are employed by private enterprise provide in taxes.
With my eyes wide open I see the state as a 'Cost Center' not a 'Profit Center' and certainly not a problem solver or inovator (got some examples).

7)It's low expectations, like yours, that breed the type of state government we now all suffer from - especially the EU. You agree the state returns 10 cents on the dollar and your best argument is 'It's all we have to steer this ship out of rough waters'.
GET OFF THE SHIP and back on shore - the real world will be just fine (for the next 1000 years at least.)

8)Sorry 35 years rather than 10 years. Keep in mind that there are still some that are predicting the Ice Age and many who disagree with the Computer models predicting Global Warming. The fact is nobody can tell you for certain.

I agree that there is some place for the State to see to the common good and to ensure our safety. I do not think they can solve scientific and economic problems.

IMHO the best thing the State can/should do is to offer some tax relief or collaborative help to companies willing to develop solutions to alternative energy needs and enviromental clean-up where required.

I hope my prediction of Porsche selling 'slower models' in the EU (and sending the 'fast' one to the US) will cause some folks to join the real world.