I wrote this on July 19, 2009 after reading a Paul Krugman column in The Hindu . And interestingly this was my first blog post ever.
It was about how the recession would affect the face of the world that we know of . I had limited understanding of macroeconomics then ( Am still no expert !!! ) , but still was able to capture the currents , thanks to columns of Paul Krugman, Thomas Friedman who took it as their task to explain to commoners on what was happening with the world.
So here is my post :
// In the current scenario of global recession,the most hit is not the banks which wrecked due to their toxic assets,not the hedge funds which played with imaginary assets and certainly not the egoistic,narcissistic Neo-liberals but the workers belonging to the middle-class,all over the world.
"Socializing pains and Privatizing gains",would happen in recessional and post-recessional periods. The carefree spending of countries on bailouts would be dubbed as welfare schemes and common people would bear the brunt of balancing the fiscal deficit due to bailing out fiscally non-compliant MNC's. This would then lead to a vicious circle of lower spending due to high taxes,lay-off's in name of company restructuring and couple that with inherently faulty system of oil futures trading and disastrous energy policy of converting food crops to fuel, which would automatically lead to higher food prices. Here is going to be a generation in developed world where they are going to be worse off than their previous generation.
Hence this recession would prove to be a breeding ground forultra-nationalism and xenophobic societies which would defeat the whole concept of Globalization itself.
In my view,to tackle recession we need to have better regulated financial systems,time tested financial instruments,highly invasive micro-financial systems to empower people, An independent World Bank and IMF in contrast to their current functioning which is to act as a proxy US financial corporation catering to the needs of US by clinging to ever failing dollar economy and upholding its(US) hegemony in global financial system in the world.
Thus we need to rethink about the existing monetary policies,redraw contours of global trade and relive the glorious periods of regulated financial systems and better social welfare schemes which increased the real buying power of people across the world and alleviated people from poverty. //
Though I could see that some strong words came from me, it was my reaction to the news which I had seen on newspapers on a daily basis, more of a reactionary outburst you could say. But still am surprised for some projections which I had mentioned is now a reality in Southern Europe.
