Nobody knows you when you’re down and out
First it was the 2007 financial crisis. Then it became the 2008 financial crisis. Next it was the downturn of 2008-2009. Finally, in mid-2009, it was dubbed the “Great Recession.” And, with the business cycle’s shift onto an upward trajectory in late 2009, the world breathed a collective a sigh of relief. We would not, it was believed, have to move on to the next label, which would inevitably contain the dreaded D-word.(…) By 2011, it was clear – at least to me – that the Great Recession was no longer an accurate moniker. It was time to begin calling this episode “the Lesser Depression.”(…) A year and a half ago, those who expected a return by 2017 to the path of potential output – whatever that would be – estimated that the Great Recession would ultimately cost the North Atlantic economy about 80% of one year’s GDP, or $13 trillion, in lost production. If such a five-year recovery began now – a highly optimistic scenario – it would mean losses of about $20 trillion. If, as seems more likely, the economy performs over the next five years as it has for the last two, then takes another five years to recover, a massive $35 trillion worth of wealth would be lost. When do we admit that it is time to call what is happening by its true name? J. Bradford DeLong – Project Syndicate
Once I lived the life of a millionaire,
Spent all my money, I didn’t care.
Took all my friends out for a mighty good time,
Buying high priced liquor , champagne and wine.
Then I began to fall so low,
Lost all my good friends, had no nowhere to go.
I ever get my hands on a dollar again,
I’ll hang on to it till that big eagle grins.
Because, nobody knows you
When you’re down and out.
In your pocket, not one penny,
And as for friends, you don’t have any.
“Nobody Knows You” – Traditional Blues
I wonder how much our economic stagnation is a major factor in the instability we are seeing in the Middle East and the Ukraine, etc, and not just our military “indecisiveness” and “war weariness”?
Certainly the miserable performance of the economy is having a very destabilizing effect on the European Union with the emergence of parties on both the left and the right that want to leave the euro or even the EU itself, and I even wonder how much of a role it might play in America’s political deadlock/paralysis?
No kidding, could things is far apart as Marine Le Pen, Podemos, Scottish independence, the Tea Party, UKIP and even the ISIS owe some of their success to the western world’s, dead in the water, economy?
Certainly the principal charisma of our western societies since WWII has been their capacity to produce enormous wealth and to distribute it widely among our populations, who spen(d-t) it freely… Let’s not kid ourselves, even the idea of “freedom” is directly connected to having enough money to exercise that freedom.
If our economy can’t cut the mustard, what exactly are we selling? Where exactly are we intent on leading the rest of humanity?
I don’t have the answer but I would like to hear more people asking the question.