economic crisis lessons
economic crisis lessons
The Current Economic Crisis Could Turn Out to be a Blessing in Disguise
Let me start off by saying that I am not an accountant nor a business expert, but rather someone who has worked all his adult life, traveled the world, seen a lot of things and met a lot of interesting people – from Presidents through to whole communities infected with HIV.
I could spend a lot of time writing about all the negative impacts of the current crisis, but for the purposes of this article I wanted to suggest a few of the many ways in which I think we will all eventually benefit.
I’m going to keep the points brief and would simply ask readers to think about them, expand upon the themes, and if necessary take issue with my conclusions.
First the banks. There are a lot of greedy people in the world, and bank scandals along with corporate theft are unfortunately here to stay. Human nature dictates this. People will always exploit a loophole no matter how tight the regulations.
However what is certain is that new regulations will now be put in place around the world considerably tightening up loopholes , making banking transactions more transparent , introducing simpler mortgage agreements, and making banks in general act far more responsibly.
Import lessons are being learnt – how to avoid making the same mistakes again, what to regulate, ways to avoid companies becoming too big to fail, what techniques best stimulate the economy, and how much or how little money to throw at a particular problem.
Now let me turn to the general public around the globe. This crisis has forced most people to examine their own spending habits, savings and pension plans (or the risks of having neither), credit card debts, and in short just how much they are spending on everything…from drinks down at the pub to food and the monthly electricity bill.
Already there is evidence emerging that people are trimming their spending and reducing where possible their debts. This is what governments have been urging for decades, although now ironically they would rather we spend like crazy to help get the economy “back on track”!
But people are now wiser than just a few months ago. Even though you can encourage them to spend more money than they have I am convinced that many have been so shaken by events that they will simply be a lot more careful with their cash in future – becoming far more prudent in terms of daily spending, buying a house or car, investing in stocks, or taking out any sort of loans.
These two major transformations ( of people’s spending habits and the redesigning and beefed up policing of the banking industry) I believe will have have profoundly positive benefits in the years ahead.
Cars – For years the auto industry had looked upon greener, more fuel efficient vehicles as a nice idea, but something really to be tinkered with rather than fully exploited.
But now fuel efficient and smaller vehicles are THE priority for all manufacturers, and those that don’t commit risk going out of business sooner rather than later. That is not to say that we will all be driving around in hybrids in 2 or 3 years. That is completely unrealistic. But I believe the current crisis has probably brought their widescale introduction forward by at least 5 if not ten years.
The oil industry’s powerful lobby may well try and apply pressure to water down greener commitments, but there is simply too much public and political pressure now to prevent real and long overdue change from occuring.
Brazil has really demonstrated what can be achieved where there is a real willingness to make sensible change. A switch to cars powered by sugar cane fuel has reduced debts to the oil cartels and brought significant additional benefits to the economy.
Oil. This year it has reached record highs and also dropped by a record amount. There must be universal acceptance that allowing such dramatic swings has no long term benefits for anyone – including the producers.
Allow oil to be priced way too high ($150 a barrel) and business expansion starts to dry up, people spend less, transport companies go out of business, heating bills go through the roof, and public spending on all manner of things starts to diminish.
On the other hand if oil is far too cheap then that introduces a whole different set of problems for the producers and distributors. I think the industry will be forced to explore new ways of future oil pricing which offer more stability for both consumers and sellers. The huge swings in price we have seen this year have simply been too dramatic to sustain. If the price of oil continued to bounce up and down so crazily in future years it would be almost impossible to try and price anything… from setting fuel tax levels and prices at the pump to calculating home heating bills. How would Governments be able to accurately predict and budget for income from oil taxation or sales? The numbers are always huge, so any radical alteration introduces major problems for strategic financial planning.
So again another need for real world evaluation of systems, pricing, and supply issues.
Speculators. Nobody can argue that they haven’t caused harm to the financial markets this year. We can argue over how much or how little. Again experts are now assessing their value, the threats they can pose, and if there should be a future in allowing people to bet on whether a company will survive.
I would suggest – as a general principle – that such forms of gambling should be confined to being placed at a horse racing style bookies establishment, and that the amounts involved should be legally limited to a paltry “fun wager” amount. Can it be right for a company to simply bet millions of dollars in the hope that in so doing they will wipe a company out by driving down its share price? How does that help the economy in any positive way? Let those same people use their considerable business minds to invest that money in more productive ways – such as backing ( through share investments) new companies where they envisage real growth potential.
Short term selling has been restricted in some countries during the current crisis, and I suspect that in time new restrictions will at least reduce the potential for harm to companies, and lead to bans on the practice in some countries.
Working together. The crisis has forced countries to cooperate, share information and ideas, act in unison, and forge new alliances. There is a definite feeling that we are all in this together, and although individual governments may have their own territorial solutions to the problems there is a realization that the global economy can only “heal” when most of the nations get their financial systems back on track.
Love thy neighbor. A lot of people won’t give a dime to a beggar in the street, but there are now numerous cases emerging of people being prepared to make financial sacrifices (particularly in the work place) to prevent misfortune for others. People are now willing to take pay cuts to save their own jobs or those of colleagues. That re-evaluation of the needs of others during a crisis, along with a new found comaradarie of spirit for survival, I believe will bring future benefits. They could be small (from simply new friendships emerging) through to having bigger impacts (such as a new commitment to supporting charities or local good causes). It almost feels like what the Brits call the “Dunkirk Spirit”.
In conclusion let me say that there is no doubt that the next 12 months are going to be horrible, and maybe the following year will be a tough one too, with people losing their homes, businesses, jobs, marriages, cars, holidays…you name it.
But when we finally emerge from this greed inspired nightmare, allow a few years of calm to pass, and then reflect on what has then changed as a result of the events of 2008, that is when I believe people will see that everyone has learnt and acted on some important lessons, and that much has been gained. We can’t all be individual financial winners, but we can all benefit from the improvements that have taken place to safeguard our futures on so many levels.
About the Author
Nigel Bellis is a seasoned British TV Producer, Director, journalist and Soundtrack Composer, currently living in New York.
what lessons have been/will be learned from the US economic crisis.?
now that china literally ows the US and it’s become obvious that a consumer driven economy can seriously backfire, what changes should the government implement to seriously get the economy back on track, and maybe (if lucky) balance the budget within 50 years.
That democrats have absolutely no clue how economics work. Their total lack of understanding about how wealth is made and how a free market functions has led us to where we are and I blame the Republicans for not standing up to these idiots when they were forcing Fannie and Freddie to accept welfare and unemployment benefits as valid INCOME sources.
On behalf of middle income people all across the country, thanks a lot, Democrats, for putting us in this situation. Not that we’ll ever learn our lesson, because who doesn’t want a free handout… or to qualify for a home loan when you can’t afford one? Brilliant policies, you friggin socialists.
|
|
(1000) WHOLESALE ANTI OBAMA BUMPER STICKERS~OOPS! (c) HIGH QUALITY VINYL! $390.00 |
|
|
Anti Obama Bumper Sticker Ultimate Collection! Conservative Stickers, 300+! $149.00 |
|
|
Tea Party Anti Obama Decal Bumper Sticker GOP 3″ x 9″ T $140.00 |
|
|
Tea Party Anti Obama Decal Bumper Sticker GOP 3″ x 9″ U $140.00 |
|
|
Tea Party Anti Obama Decal Bumper Sticker GOP 3″ x 9″ V $140.00 |
|
|
Obarrassment.com Anti-Obama Domain for Republican Presidential Campaign $100.00 |
|
|
Anti Obama “Nobama” bumper sticker (lot of 50 stickers) $99.00 |
|
|
(250) WHOLESALE ANTI OBAMA BUMPER STICKERS~REVOLT (c) HIGH QUALITY VINYL! $97.50 |
|
|
ANTI BARACK OBAMA JOKER PIN, LIMITED EDITION BY BRIAN CAMPBELL $85.00 |
|
|
Tea Party Anti Obama Decal Bumper Sticker GOP 3″ x 9″ Q $75.00 |
|
|
Tea Party Anti Obama Decal Bumper Sticker GOP 3″ x 9″ R $75.00 |
|
|
Tea Party Anti Obama Decal Bumper Sticker GOP 3″ x 9″ S $75.00 |
|
|
NEW Obamao anti against Obama 10 T-shirts WHOLESALE $74.99 |
|
|
NObama 10 T-shirts WHOLESALE anti against Obama S-3X $74.99 |
|
|
NOPE 10 T-shirts WHOLESALE anti Obama S-3X conservative $74.99 |
|
|
10 Recycle anti Obama T-shirts republican WHOLESALE $74.99 |
|
|
1-20-13 anti Obama conservative 10 T-shirts WHOLESALE $74.99 |
|
|
Anti Obama “Nobama” bumper sticker (lot of 30 stickers) $60.00 |
|
|
(20) 1-20-13 / NOPE anti Obama bumper stickers $59.99 |
|
|
Anti Barack Obama OMG Must Go Funny T-Shirt Hoodie $49.95 |
|
|
Anti Barack Obama OMG Must Go Funny T-Shirt Hoodie $49.95 |
|
|
Retro USA Flag Ron Paul 2012 President anti Obama Revolution T-Shirt Hoodie $49.95 |
|
|
Retro USA Flag Ron Paul 2012 President anti Obama Revolution T-Shirt Hoodie $49.95 |
|
|
Retro USA Flag Ron Paul 2012 President anti Obama Revolution T-Shirt Hoodie $49.95 |
|
|
NOBAMA Barack Obama Anti President Trump Hoodie T-Shirt $49.95 |
|
|
NOBAMA Barack Obama Anti President Trump Hoodie T-Shirt $49.95 |
|
|
NOBAMA Barack Obama Anti President Trump Hoodie T-Shirt $49.95 |
|
|
NOBAMA Barack Obama Anti President Trump Hoodie T-Shirt $49.95 |
|
|
NOBAMA Barack Obama Anti President Trump Hoodie T-Shirt $49.95 |
|
|
Anti Obama Black T-Shirt, with hand painted universal NO symbol! $45.99 |
|
|
Anti Obama Black T-Shirt, with hand painted universal NO symbol! $45.99 |
|
|
Anti Obama Black T-Shirt, with hand painted universal NO symbol! $45.99 |
|
|
Tea Party Anti Obama Decal Bumper Sticker GOP 3″ x 9″ N $45.00 |
|
|
Tea Party Anti Obama Decal Bumper Sticker GOP 3″ x 9″ O $45.00 |
|
|
Tea Party Anti Obama Decal Bumper Sticker GOP 3″ x 9″ P $45.00 |
|
|
Anti Barack Obama OMG Must Go Funny T-Shirt Hoodie $44.95 |
|
|
Anti Barack Obama OMG Must Go Funny T-Shirt Hoodie $44.95 |
|
|
Anti Barack Obama OMG Must Go Funny T-Shirt Hoodie $44.95 |
|
|
Anti Barack Obama OMG Must Go Funny T-Shirt Hoodie $44.95 |
|
|
Retro USA Flag Ron Paul 2012 President anti Obama Revolution T-Shirt Hoodie $44.95 |
|
|
Retro USA Flag Ron Paul 2012 President anti Obama Revolution T-Shirt Hoodie $44.95 |
|
|
Retro USA Flag Ron Paul 2012 President anti Obama Revolution T-Shirt Hoodie $44.95 |
|
|
Retro USA Flag Ron Paul 2012 President anti Obama Revolution T-Shirt Hoodie $44.95 |
|
|
Retro USA Flag Ron Paul 2012 President anti Obama Revolution T-Shirt Hoodie $44.95 |
|
|
Retro USA Flag Ron Paul 2012 President anti Obama Revolution T-Shirt Hoodie $44.95 |
|
|
Retro USA Flag Ron Paul 2012 President anti Obama Revolution T-Shirt Hoodie $44.95 |
|
|
NOBAMA Barack Obama Anti President Trump Hoodie T-Shirt $44.95 |
|
|
NOBAMA Barack Obama Anti President Trump Hoodie T-Shirt $44.95 |
|
|
NOBAMA Barack Obama Anti President Trump Hoodie T-Shirt $44.95 |
|
|
NOBAMA Barack Obama Anti President Trump Hoodie T-Shirt $44.95 |
|
|
President Barack Obama Countdown Timer Political Election $6.24 Countdown to President Obama’s last day in office! Angry about the economy? High cost of fuel? Healthcare costs through the roof? If you want to know just how much longer our current president has to serve, our clock counts down the days, minutes, and seconds until his term ends January 20, 2013. Once the clock reaches that date, it can be reset to countdown again and again until the year 2099. … |
|
|
WIPE OUT OBAMA-FUNNY TOILET PAPER-MADE IN THE USA!! $7.95 Wipe Out Obama Toilet Paper- Jumbo rolls with 450 sheets on each roll. He wiped up the Presidential election and now you can use him to wipe up your historical messes! Love him? Hate him? Either way… you’ll love this Barack Obama Funny Toilet Paper. Printed throughout the whole roll! Want to have Obama in your bathroom… YES YOU CAN have him in THE CAN!… |
|
|
I WAS ANTI OBAMA BEFORE IT WAS COOL Political 1.25 MAGNET ~ Barack $0.01 These magnets are manufactured from the highest quality materials, made of a hard metal base, thick mylar, strong magnet and true to life vibrant colors. Put them on your refrigerator, locker, file cabinet or any metal object you can think of! Magnets are great party favors for your next gathering and also make great prizes/giveaways. They are wonderful gifts for everyone!… |
|
|
Change Is Gonna Come Sessions $8.98 Bettye LaVette stole the show at President Obama’s Inaugural concert with her impassioned rendition of Sam Cooke’s “A Change Is Gonna Come,” performed with Jon Bon Jovi. Here LaVette performs the song on her own in an intimate studio setting, along with five other classic tracks by African-American songwriters, written in the spirit of change.This product is manufactured on demand using CD-R reco… |
|
|
Rock Against Bush, Vol. 1 $2.49 AUDIO CD… |
|
|
Obama Song $0.99 … |
|
|
Charlie Rose – Gaza/Al Hunt/Helen Suzman (January 5, 2009) $1.99 … |
|
|
6in X 6.9in Silver — Anti Obama 2012 One Big Ass Mistake Political Car Window Wall Laptop Decal Sticker $6.35 Anti Obama 2012 One Big Ass Mistake Political Car Window Wall Laptop Decal Sticker — Silver 6in X 6.9in When making your color choice please be aware that our decals do not have a background or background color at all. These are decals not stickers. . When applied all you will see is the outline as shown in the images. If the decal will be going on glass you will want to use a bright color like w… |
|
|
Anti Obama 2012 One Big Ass Mistake Political Car Window Wall Laptop Decal Sticker Anti Obama 2012 One Big Ass Mistake Political Car Window Wall Laptop Decal Sticker When making your color choice please be aware that our decals do not have a background or background color at all. These are decals not stickers. . When applied all you will see is the outline as shown in the images. If the decal will be going on glass you will want to use a bright color like white, yellow or pink. … |
|
|
Anti Obama 2012 One Big Ass Mistake Political Car Window Wall Laptop Decal Sticker all sizes Anti Obama 2012 One Big Ass Mistake Political Car Window Wall Laptop Decal Sticker all sizes When making your color choice please be aware that our decals do not have a background or background color at all. These are decals not stickers. . When applied all you will see is the outline as shown in the images. If the decal will be going on glass you will want to use a bright color like white, yellow… |
|
|
The Manchurian President (Hardcover) $16.96 The author of Schmoozing With Terrorists alleges that a hidden radicalism pervades President Barack Obama and his administration and stretches back to the president`s college years and claims that a far-leftist cabal was instrumental in helping… |
|
|
Between Barack and a Hard Place (Paperback) $10.58 Longstanding anti-racism activist Wise presents two essays exploring issues of race in America in the context of the election of the first person of color, Barack Obama, to the presidency of the United States. In the first essay he argues that, electio… |
|
|
The Backlash (Paperback) $13.12 They Think Obama Isn`t an American Citizen. They Think Obama Wants to Put Americans in Concentration Camps. They Think Obama Is the Anti-Christ. This Isn`t Just the Tea Party—Welcome to the Backlash. … |
|
|
Whatever It Takes (Paperback) $9.72 In this engaging profile, New York Times writer and editor Paul Tough documents the story of the Harlem Children`s Zone, an anti-poverty program cited by many, including Barack Obama, as a successful model worth replicating across the country. The prog… |
|
|
The Roots of Obama`s Rage (Paperback) $11.66 Argues that President Obama is driven by a deeply hostile anti-colonialism inherited from his father, describing how this mindset influences his policies to make America weaker and reduce its wealth and influence in the world. |
|
|
Colorblind (Paperback) $9.5 Tim Wise (ANTI-RACIST REFLECTIONS FROM AN ANGRY WHITE MALE), a noted and passionate spokesman for racial equality, argues that racism is alive and well and that despite the election of Barack Obama, America remains disturbingly far from being truly “co… |
|
|
Islamophobia (Paperback) $11.54 Islamophobia: The Ideological Campaign Against Muslims examines the rise of anti-Muslim and anti-Arab sentiments in the West following the end of the Cold War through George W. Bush`s War on Terror to the Age of Obama. Using “Operation Desert Storm” as… |
|
|
To Promote the General Welfare (Paperback) $23.05 Americans love to hate their government, and a long tradition of anti-government suspicion reaches back to debates among the founders of the nation. But the election of Barack Obama has created a backlash rivaled only by the anti-government hysteria th… |
|
|
To Promote the General Welfare (Hardcover) $77.5 Americans love to hate their government, and a long tradition of anti-government suspicion reaches back to debates among the founders of the nation. But the election of Barack Obama has created a backlash rivaled only by the anti-government hysteria th… |
