I’m no financial expert, and I certainly do not understand commerce as well as I should, but it seems to me that in order for a global economy to work, there has to be a base line, in other words, a base parity between economies. This means that for the global economy to work, either of two things must happen: the lowest economies must be raised to meet the base line, or the other economies must be brought down to meet the base line. There is a possibility that both things could happen at once, and maybe that is happening now.
There is a fourth thing: that nobody has a clear idea what needs to happen, therefore the global economy is not working, and we are in free fall; more on this later.
Assuming that the first condition is the most favorable, this would mean raising the standard of living for various African and Asian countries to the level of European or American economies. The likelihood of that happening is pretty low.
The second condition, lowering other economies to meet the base line, seems to be going on right now. We have seen the trashing of American industries, jobs sent overseas, and massive unemployment during a time when corporations are beginning to reap fantastic rewards. We have also seen the European Union forced to bail out its less prosperous members.
There is a possibility that the third thing, the raising and lowering, is going on, but in a higgledy-piggledy way that is not getting the job done. Maybe it’s that the folks who are supposed to be in charge can’t agree on how this is supposed to be done, and so we have chaos; sort of a tomayto/tomahto situation.
Mostly, though, I think it’s the fourth thing, that nobody has a clear idea of how things should be done. I think the original vision of a global economy was based on an ideal, one where we could all share without impediments. But how can person A, who makes less than $300 a month, buy the things produced in a country where person B makes more than that in a week? And if person A is not able to buy from person B, how will person B prosper? I really don’t think the global economy idea was thought out carefully enough, and we are all in free fall or close to it.
There is one last possibility that I have not spoken about, because it is paranoid thinking: that the very powerful are trying to reduce the rest of us to a level of poverty where we can be easily controlled. This would assume that there is a plan, that it is in the works, and that it bodes ill for the rest of us. Fear merchants and pundits tell us it’s true and they like to blame each other to keep us stirred up so they can get rich off of our fears. I don’t like to believe that there is a conspiracy of the rich and powerful against the rest of us, but it needed to be said.
I wish I had some answers I could give to the problems facing us. However matters are too complex and I am not in a position to fix things anyway. I guess my only answer is to keep myself and mine straight, help out wherever I can, and to not buy into scare tactics of the fear merchants. I hope you, dear reader, can do the same.
Until we meet again next time, thanks for tuning in.