Ten years ago the global economy suffered a calamitous meltdown and millions of people around the world struggled as a consequence. Now, if economists are to be believed, we are looking down the barrel of another recession.
People could be forgiven for not hearing about it, but these concerns have been published a range by media outlets around the world (see below).
Unfortunately, this sort of thing simply doesn’t make the front page of the news. Trump or some other distasteful aspect of United States politics tends to occupy that spot. It is unfortunate that more people in the media and parliament are not talking about it because we are still dealing with the impacts of the last recession, and perhaps most frighteningly, we seem not to have learned any lessons.
The Global Financial Crisis of 2008 was a disaster for many people, but it was also an opportunity to change things. The predatory loans handed out to people from low socioeconomic backgrounds that were largely responsible for the crash should have earned the lenders serious jail time, yet they and everyone else who played a part got away with a fine and a slap on the wrist. Worse, many of the bankers who were bailed out used that money to pay themselves hefty bonuses and, in the absence of the introduction of meaningful legislation to prevent something similar happening again, many were able to carry on conducting business as usual.
For those interested in justice, the failure of lawmakers around the world to punish those responsible was frustrating. The Occupy Movement was the product of the anger and frustration of millions of people around the world disaffected with the way the global economy operates and the disproportionate power wielded by the financial and political elite. As valid as their points were, the media and indeed many ordinary people ridiculed the protesters in typical fashion using generic insults without even bothering to engage with the critiques or solutions the Occupy Movement was discussing.
Trying to understand how the economy works is no easy task, whether it be in the local or global context. Thus, we rely on the information that we regularly receive (the news) and our lived experience. Those of us who are better off than others didn’t notice any immediate or significant change to our lives during or after the GFC, so we have little reason to complain and also little reason to analyse the claims of those speaking out against the status quo. Unfortunately, it is those who maintain this ignorance that are the biggest obstacle to doing things a better way.
This ignorance is not necessarily surprising, but it is incredibly disheartening. We know that the wealthiest 1% holds most of the world’s wealth and power and that accumulation drives many of our socioeconomic problems, which was one of the key points raised by the Occupy Movement, yet we still love to idolise the likes of Elon Musk and Jeff Bezos as though they are our saviours. We are quick to ignore the fact that recessions offer the wealthy and opportunity to seize more assets (as happened with property particularly in the US after the GFC) which further deprives ordinary people the chance to get ahead. Perhaps most disappointingly, even though we know recessions occur every decade, we seem so shocked when the next one comes along.
People are often quick to dismiss socialism as a system that doesn’t work, and perhaps it isn’t a perfect model either, but we cannot continue to live under a paradigm predicated on greed and competition. More, to extol the unequivocal success of capitalism seems foolish when, not because of any anomaly but its very nature, it is driven into crisis every ten or so years, adversely affecting millions of people in the process. Ignorance is one thing, but we aren’t going to get anywhere if we keep repeating the same mistakes over and over again.
I won’t lie, I’m not that thrilled about living in a system that we know is going to go belly up at certain intervals while we routinely do nothing at all to prevent it. The recent IPCC report claimed we have 12 years to stop runaway climate change, but if we can’t even manage not to crash the economy we revere so much, I fear there is little chance we will make the necessary changes that have been recommended to prevent many of the impacts of climate change.
That said, maybe there is reason to be optimistic. By all reports, the fallout from the upcoming recession will be bad, perhaps worse than last time. Also, we in New Zealand were lucky to be insulated from much of the fallout then, and it is likely we will not be so lucky next time. Maybe, just maybe, we will take the opportunity we didn’t take last time and seriously redesign the way society operates, because it may be that we have no other choice. It won’t be easy and will require massive amounts of energy, coordination and will, but another world is possible.