Many people fail to realize that the imminent global economy collapse is
real and unavoidable. These people generally point to statistics that
they have made up or twisted to suit their own purposes. The truth is
that the impending collapse of the global financial and economic systems
started many years ago, and is nearing the point when the world economy
will be completely destroyed.
The collapse began many years ago,
when governments around the world decided to start intervening in the
affairs of the free market economy. This is exemplified by the actions
of the American government following World War II. So-called consumer
advocates called for greater government regulation of various
industries, including the automotive and commercial airline industries.
As a result, many American commercial airlines and car companies failed.
Many
blamed the failure of these companies, which cost thousands of
hard-working Americans their jobs, on gross mismanagement. While this
was a contributing factor in the crisis, the primary factor was the
effect of the aforementioned regulations on the bottom line profits of
these corporations. These laws made it very difficult for American
companies to compete. Foreign companies recognized the opportunity and
swooped in quickly. They were not subject to many of the laws, and used
this to their advantage.
Of course, the imminent global economy
collapse is not due solely to greater government oversight. There are
many factors that go into a global event of this magnitude. Trade
between sovereign nations has been hampered by corruption and
bureaucracy. Also, a series of wars has hampered economic growth and
development, as many countries had to focus their efforts on fighting
instead of their economies. Additionally, there are many industries in
various countries that the government controls entirely. This makes
growth in those industries tied to laws. However, the nations that have
privatized industry also tend to have bureaucracies. This means that
privatized industries advance at a snail's pace.
The trade that occurs between countries all over the world is
vital for economic development. Hundreds of millions, if not billions,
of jobs depend on it. However, it is troubled for the same reason that
it is vital. The amount of money induces greed. It may not sound like a
big deal for a border guard in Somalia to take a bribe, but this bribe
will drive up the cost of the goods. This means fewer people will be
able to buy them. This hurts the seller, who can then employ fewer
workers. This chain of cause and effect is seen thousands upon thousands
of times a year, in locales all over the world.
The various wars
of the 21st century have hurt the world economy even more than
corruption. Some may point to the large government contracts that war
necessitates as indicators of economic growth. This, however, is
short-sighted. While this government contracts can be lucrative and can
create many jobs, they are short-term boosts to the economy. Once the
war is over, the damage caused by focusing on war rather than business
becomes clear.
The public control of industries in communist and
socialist countries causes economic harm to people around the globe. Any
industry controlled by the government is subject to a massive
bureaucracy. The impending collapse of the global financial and economic
systems can be partially blamed on this phenomenon. The government
officials that control these public industries are more concerned with
promotions than profitability. Also, the companies in these industries
are subject to government quotas for employees. Even if they do manage
to turn a profit, this will not create more jobs.
In conclusion,
the global financial crisis has been primarily caused by corruption and
government interference. It has not yet caused a collapse of the world
economy, and many are reluctant to admit that it will happen at all
because of the current supposed economic growth. However, this growth is
a bubble that will pop and cause great harm.
