Effects of the COVID-19 crisis

Dec 09, 2020 Letters

DEAR EDITOR,

Feudalism declined in Europe from 12th century to 15th century. In the 1300s, the bubonic plague swept across Asia and Europe. Over the next two centuries, this disease killed millions. The death of so many led to economic and social changes. The Magna Carta (1215), which limited the king’s power and strengthened the rights of the nobles and the creation of parliament. The common people benefitted as the nobles used them to gain more power through parliamentary democracy and capitalism. The relationship moved from serf and lords to employer and employee. The war between France and England between 1337 and 1453 shifted power from the feudal lords to the monarchs and common people.
Before the 18th century, people lived, farmed and worked from homes. Just before the Industrial Revolution (18th century), manufacturers started to gather workers in one place under supervision for a wage.
I see a similar shift happening today caused by the COVID-19 crisis, the war on terrorism and Global debt of US$277 trillion by year’s end (Institute of International Finance). Capitalism, the current dominant economic system whose main advocate is the United States is unlikely to recover. The US is no longer practicing capitalism with government buying, corporate bonds, ETFs and giving forgivable loans to big corporation like Microsoft. Twenty percent of US companies are zombie corporations are being kept afloat by government money. When the US tried to raise interest rate to 2.5 percent in December 2018, the stock market crashed. The Federal Reserve started to take interest rate to zero. Because of US debt of 27.4 trillion interest rate will stay near zero indefinitely. The future implementation of artificial intelligence, automation, biotech and other technology will decrease the need for workers. Just the present work from home where possible orders cut the need for transportation and other goods and services like office space, gas and work clothes.
The present economic system is outdated and fit for the 19th century. The IMF is calling for a new Bretton Woods which is a new economic order. Spain’s finance minister has introduced universal basic income as a response to the novel coronavirus and it will become permanent. The entire world has introduced some sort of universal basic income in the form of unemployment relief or food subsidy. From about the 1800s the masses have experience growing freedom and an improved standard of life due to democracy and economic growth.
For most of civilization, the common people have lived meager existence. It seems like we will revert back to the mean (norm). It is a mathematica laxiom that over a long period of time, phenomenon goes back to the mean. It is a highly likely probability but human ingenuity and determination can prolong humanity high standard of living. No more serf and lords but equal human beings. Presently our rulers are government which replaces the king’s and business persons who replace the lords. It’s a modification that benefits the common people but we can still do better

Brian E. Plummer

Discover more from Kaieteur News

Subscribe to get the latest posts sent to your email.

Latest News