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In today’s society there is uncertainty concerning the world powers and their economic situation.  The American economic crisis, the European economic crises of 2008 and every other economy in the world make up the current melancholic global economic situation we are in today. 

According to a UN press release the world economy will expand by 3.1 per cent in 2011 and 3.5 per cent in 2012 – far from sufficient to enable recovering the jobs lost because of the 2008 crisis (Kanhema).  It is true that the United States suffered greatly from the 2008 disaster, but so did the whole world.  As citizens of this world it is on us to help each other in times of need.  Some longstanding policies in certain countries like Greece and Italy are now falling and taking the rest of the party with them.  Not meaning to be rude or ostracizing but it is the simple truth that countries such as these have indulgent lifestyles, many retire in their 50’s, and many pay little to no taxes.  There is the need for austerity on part of these governments, to live like the rest of us do.

However, if the Greek and Italian banks go under, it will hurt the American banks, the French banks, the Japanese bank, it will hurt the world economy because these loans that are supposed to be repaid with time, won’t, they will turn out to be grants.  It would be like giving free aid to foreign nations.  If this one sided act is not reciprocated in like, then there is no way to create a cycle of prosperity, a sustainable future.  If these countries fall, it will hurt the European Union which will harm our globalized world and it could trigger another recession.

It is necessary for the nations composing the United Nations to help out these countries, because whether we like it or not, if they suffer, eventually we will suffer too.  This is not to say, to blindly give aid, the recovery of these nations is first and foremost up to themselves.  It is necessary for the people to take unto themselves austerity measures.  To have fundamental changes in their lifestyles, the perpetrator of this situation, to live within the normal bounds of a worldly society.

If we can work together and do what is needed, rather than what we wish to imagine, then we can all come out of this crisis stronger than we were before.

Mark McAvoy

15 December 2011

Citation

Kanhema, Newton. "High Unemployment, Fiscal Tightening and Risk of Currency Wars Threaten Global Recovery." World Economic Situation and Prospects. 1 Dec. 2011. Web. 15 Dec. 2011.