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 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 of fiscal non-compliant MNC's.This would lead to a vicious circle of lower spending due to high taxes,lay-off's in name of company restructuring,and and higher food prices which is primarily an offshoot of lax carbon policies of G5 countries ,inherently faulty system of oil futures trading and disastrous energy policy of converting food crops to fuel.
Hence this recession would prove to be a breeding ground for ultra-nationalism,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,independent World Bank and IMF which right now function as a proxy US financial corporation catering to the needs of US,clinging to ever failing DOLLAR ECONOMY,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.
This post has already been posted in INSEAD website.You may read the post at knowledge.insead.edu.
I am Jeyannathann Karunanithi from India,currently pursuing 2nd year undergraduate degree(B. Tech) in Industrial Biotechnology in SASTRA University.
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