Photo Source SPACES Gallery | CC BY 2.0
“Out of the frying pan, into the fire” is an apt description of our current place in history. No matter what you think of globalization, I believe we’ll soon discover that capitalism without it is much, much worse.
No one needs to convince establishment economists, politicians and pundits that the absence of globalization and growth spells trouble. They’ve pushed globalization as the Viagra of economic growth for years. But globalization has never been popular with everyone. Capitalism’s critics recognize that it generates tremendous wealth and power for a tiny fraction of the Earth’s seven billion people, makes room for some in the middle class, but keeps most of humanity destitute and desperate, while trashing the planet and jeopardizing human survival for generations to come.
Around the world, social movements believe “Another World Is Possible!” when neoliberal globalization is replaced by a more democratic, equitable, Earth-friendly society. They assume that any future without globalization is bound to be an improvement. But now it appears that this assumption may be wrong. In fact, future generations may someday look back on capitalism’s growth phase as the dynamic days of industrial civilization, a naïve time before anyone realized that the worst was yet to come.
The Return of Scarce Oil and Peak Debt
Today, rising energy prices and ballooning debt are poised to strangle the global economy once again. These suffocating conditions brought the economy to its knees in 2008. Afterward, fracking helped increase the supply and lower the price of oil and gas temporarily. Meanwhile, debt-dependent cash infusions in the form of bailouts, low interest rates, corporate tax cuts and leveraged stock buy-backs were injected into the economy to prop up stock prices and profit margins. [1]
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