Today, as if anyone doesn’t know, is Independance day. The day when Will Smith and Jeff Goldblum kicked some alien ass and saved the planet for another year. It’s also the anniversary of when the fledgling USA threw off the mantle of the British. I’m so pleased they did because we now have become closer than would have been thinkable in the late 18th century.
The world is still shrinking and no country can stand alone and be completely self sufficient, the current recession is affecting everyone and every country has to adapt to spending and borrowing cuts, some countries are getting close to bankruptcy, a few cities in the USA, including Stockton CA, have declared themselves bankrupt already. In the last two or three recessions it was the USA which led the recovery, now more than ever, even they are struggling to find a way out.
I don’t claim to be an economist as I can’t see a way out for anyone since no-one will bite the bullet and offer billions to get countries back to work and ease the recession.
I studied economics for both my Scottish qualifications, an SNC in Business Studies and an SHND in Accounts, as well as studying the subject again for my AAT professional qualification. I found that whatever political stance you take an economist can be found who will back; and even justify; the political stance you propose to take.
The founding father of economics seems to have been the Scot, Adam Smith. There have been others since who will tell you he was correct at the time because imports cost less than the revenue generated by exports. In case you’re unaware of Mr. Smith, what he suggested to end a recession was to pay two teams of labourers, the first team would dig a hole one day then move elsewhere and do the same the next days and weeks. The second team would follow a day later and fill the holes in. Because both teams would be paid more for working that meant more money locally being spent in shops, pubs and other establishments helping to fuel the economy.
If this is going to work today then all nations will have to pool their workforces and economies but there are very countries where the governments can agree with the opposition so they are allowed to govern. It’s good in theory but would never get off the ground. If you don’t think I’m right just look at the conflicts within the Eurozone countries. Could all of the current problems of recession be traced back to Hong Kong and the first rogue trader? Or perhaps it’s all down to 9/11 and the terrorist attacks on the USA?