Recovery???

The Economy and Covid



Every time I hear talk of a recovery in the media I shake my head and sigh. V-shaped, U-shaped, check mark shape? Recovery for who? From what? Recovery from the decades long currency devaluations? Recovery from the massive buildup of debt everywhere? Recovery from longstanding and ever increasing inequality? Recovery from resource depletion wherever one looks? Oh yeah, they mean back to December 2019. Like that matters.

Many will call me a pessimist or a doomer or apply some other ad hominem label but the reality is there will be no recovery. If we are lucky...maybe...but it will take a long time and things will look very different. There have been many good times and bad times, ups and downs, dark ages and roaring decades. During rough patches the uplifting refrain was, "this too, shall pass". It was true. Can it be true this time? How can it be?

In times past, the Earth's resources were plentiful. Until recently, there were far fewer humans. Arable land hadn't been depleted. Topsoil hadn't been eroded. There was less pollution. Exploiting nature and less advantaged humans was abundantly do-able. Fossil fuels came along to provide vast amounts of energy and by-products; so much so, that the people of the world are utterly dependent on them and the easy-to-get stuff is disappearing fast. Then there are the effects of a warming planet that we caused and have done nothing to curb.

The standard of living most of us have become accustomed to (at least in Western countries) is diminishing. It has been for years and the paced picked up in 2008. The pace will continue to quicken.

If we accept the predicament and all work together (Covid-19 proves we can work towards a common goal), then we can create a new normal that might be livable. Recovery? Sigh. 
 
 

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