Posted by: Nathan M. | June 4, 2009

Economic Rebound?

Could it be that we are on the way back up out of this economic crisis? There are some signs that seem to be indicating this, and it wouldn’t be entirely without precedent. The world and new economic policies have had progress in decreasing economic fall when it inevitably occurs, and we have seen less dramatic collapses in the past while. The capitalist system dictates that there will be a crash in the markets at one time or another, but for a long time it was deemed impossible for economic policies to really have any kind of impact on this collapse. However, present circumstances seem to indicate something different. Oil prices are on the rise again and Oil represents the economic stability of the modern world more than Gold. US_Economy-large_mainThe TSX index rose significantly in Canada, and there are other signs that seem to be indicating a resurgence in customer confidence, primarily in the world of stocks. The real question in all of this lies in what has been learned from the economic collapse and, sadly enough, I would venture that very little has been learned by the world leaders, particularly in the United States. This cycle has happened countless times before in America during which an economic collapse occurs, regulations are placed on the economy, and assistance is provided. The economy makes a recovery, and in time the government of America decides that the way to economic prosperity is to deregulate their economy to the state that it was in before the collapse. Then, the banks of America run wild and eventually dig themselves into a massive hole, causing another economic collapse. This was the cause of virtually all of the depressions in the past. The problem is, every time that this happens, the government of the United States increases the massive debt that has been accumulating for decades. Eventually, the government will not be able to perform that job of bailing the economy out because of the debt, and a much more severe collapse will occur. How long? I wonder. Of course, every nation has a hand in perpetrating this, since we all invest in America and take no effort to remove ourselves from our reliance on America.

What I have come to realize more and more about all of this is how little people really care. The capitalist system, as a pure system, is bound to fail. That has been proven time and time again. I am not suggesting communism so don’t start jumping up and down. I am pointing out the fact that the system of pure communism is bound to fail and crash, that is a simple fact. We can respond to this in two different ways-we can shrug it off and bear the crashes that will occur in the economy every so-often, or we can look for ways to regulate the economy permanently and create a more stable society. The problem is, in our democratic system, politicians are not rewarded for providing stability, they are rewarded for doing some thing big and dramatic. Deregulating the economy for a temporary surge in profits is big, dramatic, and often looked upon as a wonderful thing, especially in America where reagonomics still have a firm hold on many peoples’ minds and hearts. Conservatism is a given in America for everyone. But then, the world keeps turning, and people don’t worry. We keep buying, hording, and wearing our blinders.


Further Readings

Energy stocks put fire under TSX

GM Bailout. Worth it?

Kelly McParland: Harper never had a choice on GM

Recession could end this summer: economists

GDP data show worst is over: Harper

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