EDITOR, The Tribune.
We had the 2008 financial crisis called the great recession. It was mainly caused by people not being able to pay their mortgage (home debt). Low interest rate was offered to people who would not normally qualify (subprime borrowers). The low interest increase and people could not meet their mortgages. Home prices fell. The entire US financial system went into recession and the rest of the world followed suit.
Today the US consumer and most of the world are drowning in debt. Low interest rate of the world central banks and quantitative easing (by other names) are keeping the global financial system afloat. There is a 60% chance of a recession starting in the United States by the end of 2020 according to to a National Association for Business Economics Survey.
About every 10 years a global recession has occurred but the central banks of the world have extended the time by low interest rate and by creating liquidity. It will be difficult to deal with the coming recession because interest rates are already low and most countries are heavily indebted.
I believe both capitalism and communism are obsolete. Communism was fatally injured in 1991 when the Soviet Union collapsed. Capitalism will be fatally injured by the end of 2021 or the next global recession. The fourth industrial revolution requires a modern economic system. The current system is built for the first industrial revolution not the fourth which will change the world by using artificial intelligence and advance biotechnology. The only constant is change. What capitalist and communist (or socialist) don’t realise is that labour and capital are interdependent.; one cannot exist without the other. Artificial intelligence which is replacing workers don’t value money or human life.
BRIAN E PLUMMER
Nassau,
October 9, 2019.
Comments
Porcupine 4 years, 6 months ago
Mr. Plummer, You are too far ahead of your time. Most people today are fully distracted by work, sports, religion, facebook and other social media. The global IQ is dropping, and the AI you are talking about is being used for mostly nefarious purposes. To control people and turn them into obedient consumers. You are right about the failures of both communism and capitalism. Instead of becoming more informed, as you are, most of the world's people are only interested in their own short term self interest. Is there a better example of this trend than here in The Bahamas?
Sickened 4 years, 6 months ago
Great conversation. But let's start talking about it years after the next recession has started. Planning is not what we do as a country. China plans for the next 100 years, the U.S for 4 years and the Bahamas plans after the fact.
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